Free download in PDF UGC NET November 2017 Economics paper III.
1. Consider the following diagram showing the market demand and supply curves for a commodity. If the government fixes the price P1 above the market clearing price P0, then the dead-weight loss is represented by :
Area of triangle ABE
Area of triangle EBC
Area of triangle ABE+area of triangle EBC
Area of rectangle P1A B P0
Answer: Option (3)
2. Which of the following features belong to Cournots’ model of duopoly ?
(a) It yields determinate and stable equilibrium for the duopolists
(b) It is an adequate representation of Nash equilibrium
(c) If the duopolists combine to form a monopoly, the price changed by them will be less than the equilibrium price without their combining together.
Of the above which statements are true ? Choose from the code below :
3. A good is called a ‘Giffen good’ when the income effect is :
positive and is greater than the substitution effect
Equal to substitution effect
Less than the substitution effect
Negative and is greater than the substitution effect
Answer: Option (4)
4. Movement from an inefficient allocation to an efficient allocation in the Edgeworth Box will :
increase the utility of all individuals
increase the utility of at least one individual, but may decrease the level of utility of another person
increase the utility of one individual, but cannot decrease the utility of any individual
decrease the utility of all individuals
Answer: Option (3)
5. In explaining the price effect, which of the following is/are constant ?
(a) Real Income
(b) Money Income
(c) Price ratio
Choose the correct answer from the code given below :
Code :
Only (a)
Only (b)
Both (b) and (c)
Both (a) and (c)
Answer: Option (2)
6. Which of the following is a problem connected with general equilibrium analysis ?
Existence problem
Uniqueness problem
Stability problem
All of the above
Answer: Option (4)
7. In the adjacent diagrams 1 and 2, the demand curve DD and supply curve SS are shown. Point E and F represent the equilibrium points. Then which of the following is correct ?
Both points E and F are the points of stable equilibrium
Both points E and F are points of unstable equilibrium
Equilibrium is stable at point E and unstable at point F
Equilibrium is unstable at point E and stable at point F
Answer: Option (4)
8. Which of the following statements about Pareto Optimum are correct ?
(a) It changes with changes in the distribution of income
(b) At the Pareto optimum, MRS in consumption=MRT in production
(c) It is not unique
(d) It is obtained under perfect competition
(a), (c) and (d)
(b) and (c)
(a), (b) and (d)
(a) and (b)
Answer: Option (3)
9. Market prices adjusted to consider differences between social cost - benefit and private cost-benefit calculations are :
Consumer Surplus
Price distribution
Exchange rate
Shadow prices
Answer: Option (4)
10. ‘Bandwagon Effect’ is found in which of the following ?
Life cycle hypothesis
Permanent income hypothesis
Absolute income hypothesis
Relative income hypothesis
Answer: Option (4)
11. Consider the following statements :
(a) Phillips curve is an inverse relationship between the rate of unemployment and the rate of inflation in an economy
(b) Engel’s Law observes that as income rises the proportion of income spent on food falls even if the actual expenditure on food rises
Which of the above statement(s) is/are correct ?
Only (a)
Only (b)
Both (a) and (b)
Neither (a) nor (b)
Answer: Option (3)
12. ‘Bandwagon Effect’ is found in which of the following ?
Concept Economist
Dual decision hypothesis R.W. Clower
Natural rate of unemployment E. Phelps and M. Friedman
Limit Price Theory J. Bhagwati
Planned sales curve Mrs. J. Robinson
Answer: Option (4)
13. Which amongst the following is correct for the aggregate demand function shown in the diagram ?
Choose the answer from the code below
(a) and (d) are correct
(a) and (c) are correct
(b) and (c) are correct
(b) and (d) are correct
Answer: Option (1)
14. Permanent income hypothesis assumes positive correlation between which of the following pairs of variables ?
Permanent income and transitory income
Permanent income and transitory consumption
Permanent income and permanent consumption
Transitory income and transitory consumption
Answer: Option (3)
15. Which of the following would be the initial impact on an economy if wages were to increase more than workers productivity ?
Employment would increase, causing a rightward shift in the aggregate demand curve
The aggregate demand curve would shift to the left, increasing the price level
The short - run aggregate supply curve would shift to the left, increasing the price level
Employment would decrease, causing a rightward shift in the aggregate demand curve
Answer: Option (3)
16. Consider the following statements describing the relationship between marginal propensity to consume (m.p.c) and the value of the multiplier :
(a) Higher the m.p.c lower is the value of multiplier
(b) Higher the m.p.c higher is the value of multiplier
(c) If m.p.c=1, value of multiplier will be ∞
(b) alone
(b) and (c)
(c) alone
(a) alone
Answer: Option (2)
17. Which amongst the following is correct for the aggregate demand function shown in the diagram ?
Code : (a) (b) (c) (d)
(iv) (ii) (i) (iii)
(i) (iii) (iv) (ii)
(ii) (iv) (i) (iii)
(iii) (i) (ii) (iv)
Answer: Option (3)
18. ‘Golden rule of accumulation’ refers to the savings rate that :
maximises the growth rate of output
optimises the investment in the economy
maximises the growing per capita consumption
None of the above
Answer: Option (3)
19. Which amongst the following statements are true for Schumpeter model of development ?
(a) Development is possible because of credit creation by Banks
(b) Development flourishes in democracy
(c) Capitalist economy develops through trade cycles
Of the above which statements are correct ? Answer from the code below :
All the above are true
(a) and (b) are true
(b) and (c) are true
(a) and (c) are true
Answer: Option (4)
20. In Marxian model, the rate of profit on capital is :
Directly proportional to rate of exploitation as well as organic composition of capital
Inversely proportional to rate of exploitation and organic composition of capital
Inversely proportional to rate of exploitation and directly proportional to organic composition of capital
Directly proportional to rate of exploitation and inversely proportional to organic composition of capital
Answer: Option (4)
21. Which of the following is/are true for AK model of growth ?
(a) It assumes constant savings rate
(b) This savings rate is exogeneously determined
(c) The marginal product of capital is diminishing as output expands Of the above which statements are correct ?
All the three above are correct
Only (a) and (b) are correct
(a) and (c) are correct
Only (b) and (c) are correct
Answer: Option (2)
22. According to Fisher - Clark thesis which one of the following is the correct sequence of structural shift in the process of development ?
Agriculture, Services, Industry
Agriculture, Industry, Services
Agriculture, Industry, Foreign trade
Agriculture, Foreign trade, Services
Answer: Option (2)
23. Hagen’s theory of social change uses psychology, sociology and anthropology to explain how a traditional agricultural society :
attains continuing technical progress
learns to accept its fate
has a social structure where high status is maintained
produces an accommodating personality with a high need for achievement
Answer: Option (1)
24. According to Lewis model, the dual economy grows, only when :
Modern sector increases its output share relative to the traditional sector
agriculture sector uses modern equipment
agriculture sector hires labour economically
modern manufacturing sector is capital intensive
Answer: Option (1)
25. One of the dependency theorists, Andre Gunder Frank suggests that the following economic activities have contributed to under development :
(a) Workers migrating from villages to foreign - dominated urban complexes
(b) Forming an unskilled labour force to work in factories and mines and on plantations
(c) Replacing indigenous entreprises with technologically more advanced, global, subsidiary companies
(d) Closing the economy to trade with and investment from developed countries Choose the answer from the code given below :
(a) and (b)
(b) and (c)
(a), (b) and (c)
(a), (b), (c) and (d)
Answer: Option (3)
26. If in a Harrodian economy, Ga=10% and Gw=8%, this will lead to :
Inflation
Unemployment
Deflation
Stagflation
Answer: Option (1)
27. Match List - I and List - II and select the correct answer from the code given below
Code : (a) (b) (c) (d)
(ii) (i) (iii) (iv)
(iv) (i) (ii) (iii)
(iv) (ii) (i) (iii)
(i) (iii) (ii) (iv)
Answer: Option (2)
28. The ‘twin deficit’ problem means a country having :
High fiscal deficit and high current account deficit
High fiscal deficit and high revenue deficit
High fiscal deficit and high governance deficit
High fiscal deficit and high primary deficit
Answer: Option (1)
29. MNCs can help the developing countries to:
(a) Obtain foreign technology and innovative methods of increasing productivity
(b) Employ rural unemployed labour
(c) Finance a savings gap or balance of payments deficit
(d) Generate appropriate technology by adapting existing processes Choose the correct answer from the code given below :
(a) and (c) only
(b) and (c) only
(b) and (c) only
(a), (b), (c) and (d)
Answer: Option (1)
30. Which of the following is not part of the W.T.O. Agreement On Agriculture (AOA) ?
Input subsidies
Export subsidies
Domestic support
Market Access
Answer: Option (1)
31. In the context of US economy, which one of the following is true for ‘Triffin dilemma’ ?
(a) US has to support a large supply of dollars to act as an internationally accepted currency.
(b) There is a conflict in the short run domestic and long run objective of US trade policy resulting in trade deficit.
Which of the above statements are true ? Choose from the code given below :
Both (a) and (b) are true
Neither (a) nor (b) are true
Only (a) is true
Only (b) is true
Answer: Option (1)
32. Which of the following does not form part of the foreign exchange reserves of India ?
Gold
SDRs
Foreign currency assets
Foreign currency and securities held by the banks and corporate bodies
Answer: Option (4)
33. The Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement between the members of :
SAARC
ASEAN
BRICS
EUROPEAN UNION
Answer: Option (2)
34. Match List - I (Concepts) and List - II (Economists) and select the correct answer using the code given below :
Code : (a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(ii) (i) (iv) (iii)
(iii) (i) (ii) (iv)
(iv) (iii) (i) (ii)
Answer: Option (3)
35. The presence of increasing returns to scale in an industry leads to :
discouraging producers from exporting
give a comparative advantage in that industry to large countries
make that industry perfectly competitive
cause price in that industry to rise with output
Answer: Option (2)
36. Hedging in the foreign exchange market refers to :
An act of devaluation
Covering a risk of fluctuations in the foreign exchange rates in future
Not covering a risk of fluctuations in the foreign exchange rates in future
An act of revaluation
Answer: Option (2)
37. Arrange the following acts in the order in which they came into force :
(a) Competition Act
(b) Foreign Exchange Management Act
(c) Consumer Protection Act
(d) The Factories Act
Choose the answer from the code below :
(b), (a), (d), (c)
(d), (b), (c), (a)
(d), (c), (b), (a)
(c), (d), (b), (a)
Answer: Option (3)
38. Match List - I (Concepts) and List - II (Economists) and select the correct answer using the code given below :
Code : (a) (b) (c) (d)
(iii) (ii) (i) (iv)
(ii) (iv) (i) (iii)
(iv) (i) (iii) (ii)
(i) (iii) (ii) (iv)
Answer: Option (2)
39. Arrange the following sectors in the ascending order on the basis of their weight in the Index of Industrial production (IIP) with base year 2011 - 12. Answer from the code below :
(a) Electricity
(b) Manufacturing
(c) Mining
Code :
(c), (b) and (a)
(a), (c) and (b)
(b), (a) and (c)
(a), (b) and (c)
Answer: Option (2)
40. For a financial asset, which of the following is/are correct in relation to rate of return and the yield from it ?
(a) Rate of return is retrospective while the yield is prospective
(b) Rate of return does not include capital gains while the yield includes capital gains. Choose the answer from the code below :
Both (a) and (b) are correct
Neither (a) nor (b) is correct
Only (a) is correct
Only (b) is correct
Answer: Option (4)
41. When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean ?
The commercial Banks will have less money to lend
The Reserve Bank of India will have less money to lend
43. According to T.W. Schultz, which of the following statements/are true ?
(a) Farmers in developing countries are unresponsive to government set agricultural prices
(b) Farmers in developing countries are willing to innovate and adopt new methods of cultivation
Both (a) and (b) are true
Neither (a) nor (b) is true
Only (a) is true
Only (b) is true
Answer: Option (4)
44. The government levying taxes on Polluters or charging a surcharge for pesticide use means :
Internalization of negative spill over effects
Marginal abatement cost
Examples of a free rider
Examples of Coase’s theorem
Answer: Option (1)
45. Assuming an agricultural growth rate of 4% per annum in India, what will be its contribution to the country’s GDP growth rate with a 20% contribution of the agricultural sector to GDP ?
8%
5%
2 %
0.8 %
Answer: Option (4)
46. Optimum population will be at a point where :
National income is maximum
Per capita income is maximum
Population is maximum
Per capita consumption is maximum
Answer: Option (2)
47. Who amongst the following made the following statement?
“The Table of nature is laid for the few. Those who come uninvited will starve”.
Julius Simon
E. Boserup
T.W. Malthus
H. Dalton
Answer: Option (3)
48. Which of the following is not part of a life - table ?
It shows age - specific death rate
Age - specific life expectancy can be estimated
Probability of surviving at particular year of age can be estimated
Age - specific birth rate can be estimated
Answer: Option (4)
49. Consider the following data pertaining to India as per NFHS - 4 and Match List - I with List - II. Select the correct answer from the code given below
Code : (a) (b) (c) (d)
(i) (iii) (ii) (iv)
(i) (iv) (ii) (iii)
(iv) (i) (iii) (ii)
(i) (ii) (iii) (iv)
Answer: Option (2)
50. Rank the following states in descending order according to sex ratio as per census 2011 :
(a) Madhya Pradesh
(b) Punjab
(c) U.P
(d) Bihar
Code :
(a), (c), (d), (b)
(b), (a), (c), (d)
(a), (b), (c), (d)
(c), (d), (b), (a)
Answer: Option (4)
51. Pollution is an example of Market failure because :
The market price is less than the efficient price
The market price is higher than the efficient price
Property rights are poorly distributed
Those who suffer from pollution are compensated outside the market
Answer: Option (1)
52. “For goods that are unrelated in consumption, efficiency requires that tax rates be inversely proportional to elasticity of demand”. This is the definition of :
The benefits - received principle
The second best principle
The inverse elasticity rule
The Ramsey Rule
Answer: Option (4)
53. A forward - shifted tax will affect :
Buyers and Sellers equally
Sellers more than buyers
government revenue negatively
Buyers more than sellers
Answer: Option (4)
54. The case for progressive tax rates rests on :
Benefits received
Cost of service
Ability to pay
None of the above
Answer: Option (3)
55. Primary deficit is measured by :
Fiscal deficit − interest payments
Budget deficit − interest payments
Budget deficit + total borrowings
Total Revenue expenditure −total revenue receipts
Answer: Option (4)
56. Consider the following data pertaining to India as per NFHS - 4 and Match List - I with List - II. Select the correct answer from the code given below
Plan Strategy of Plan
11TH Plan Inclusive growth
2ND Plan Heavy industry investment
3RD Plan Balanced growth
8TH Plan Basic Needs
Answer: Option (4)
57. Who amongst the following economists have majorly contributed to TFP studies in Indian Context ?
(a) B.N. Golder
(b) A. Virmani
(c) D.K. Das
(d) A. Sen
Choose the correct answer
All of the above
(c) and (d)
(a), (b) and (c)
(b) and (d)
Answer: Option (3)
58. Consider the following statements in relation to Gender Budgeting and answer from the code given below :
(a) ‘Gender analysis’ of the budget
(b) Preparing a separate budget for women
(c) Government of India adopted gender budgeting in 2005 - 06
Code :
(a), (b) are correct
(a), (c) are correct
(b), (c) are correct
(a), (b), (c) are correct
Answer: Option (4)
59. Arrange the following indices in the chronological order and answer from the code given below :
(a) Multi Dimension Poverty Index
(b) Human Poverty Index
(c) Capability Poverty Measure
(d) Human Development Index
(d), (c), (b), (a)
(d), (b), (c), (a)
(b), (a), (d), (c)
(a), (b), (c), (d)
Answer: Option (1)
60. Which organisation in India has been given the responsibility to monitor the progress of sustainable development goals ?
Reserve Bank of India
Central Statistical Office
NITI Aayog
National Sample Survey office
Answer: Option (3)
61. Which of the following does not come under Small Savings Schemes as per Government of India ?
Post office deposits
Public Provident Fund
Jan Dhan Accounts
Sukanya Samiridhi Yojana
Answer: Option (3)
62. Which one of the following schemes provide upto ` 2 lacs accidental death Insurance to the people in the age group of 18 - 70 years ?
(1) Atal Pension Yojna
(2) Pradhan Mantri Jeevan Jyoti Bima Yojna
(3) Pradhan Mantri Suraksha Bima Yojna
(4) Atal Jeevan Beema Yojna
Questions 63 to 66 are Assertion (A) and Reason (R) type. Key to these questions is as follows :
Both (A) and (R) are true and (R) is the correct explanation of (A).
Both (A) and (R) are true, but (R) is not the correctexplanation of (A).
(A) is true, but (R) is false.
(A) is false, but (R) is true.
Answer: Option (3)
Questions 63 to 66 are Assertion (A) and Reason (R) type. Key to these questions is as follows :
Both (A) and (R) are true and (R) is the correct explanation of (A).
Both (A) and (R) are true, but (R) is not the correctexplanation of (A).
(A) is true, but (R) is false.
(A) is false, but (R) is true.
63. Assertion (A) : Public utilities do not opt for profit maximisation policy.
Reason (R) : It would lead to under utilization of capacity.
Answer: Option (2)
64. Assertion (A) : The existence of industries with increasing returns to scale create an additional opportunity to gain from trade.
Reason (R) : By specializing in a smaller number of industries, countries can produce more in each industry and the costs of production will, therefore, fall.
Answer: Option (2)
65. Assertion (A) : Recursive models can be suitably estimated by OLS method
66. Assertion (A) : Classical macro model is decomposable into real and monetary sectors
Reason (R) : Money affects both income and employment
Answer: Option (2)
67. An entrepreneur’s short - run total cost function is C=q3−10q2+17q+66. If p=5 the output at which profit is maximised by this entrepreneur is :
7
6
5
2/3
Answer: Option (2)
68. Given the Market model with Demand and supply functions as under :
69. The production function in Input - Output Analysis propounded by W.W. Leontief has implied the value of elasticity of substitution between inputs as :
One
Zero
Constant
Infinity
Answer: Option (2)
70. For a Demand Function p=16−q−0.5q2 the price elasticity of demand at q=4 is :
+0.5
+0.2
+0.7
+0.3
Answer: Option (2)
71. Cobb - Douglas production function Q=ALAK1−A(a>0) is not characterised by :
Constant returns to scale
Unit elasticity of substitution
Variable elasticity of substitution
Linear homogeneity
Answer: Option (3)
72. For samples of size greater than 30, the sampling distribution of the rank correlation coefficient is approximately which distribution :
t
Binomial
Chi - square
Normal
Answer: Option (4)
73. If a Durbin - Watson statistics takes value close to zero, what will be the value of first order autocorrelation coefficient ?
Close to zero
Close to plus one
Close to minus one
Close to either minus or plus one
Answer: Option (2)
74. What would be consequences for the OLS estimator if heteroscedasticity is present in a regression model but ignored ?
it will be biased
it will be inconsistent
it will be inefficient
All (1), (2) and (3) will be true
Answer: Option (3)
75. Consider the following data pertaining to India as per NFHS - 4 and Match List - I with List - II. Select the correct answer from the code given below