NTA UGC NET/JRF Exam, (Cancelled) June-2024 Economics

Total Questions: 100

1. There are several reasons why serial correlation occurs. The reason which does not cause serial correlation is:

Correct Answer: (d) Large variation in the observed explanatory variables
Solution:

Correlation describes an association between types of variables when one variable changes, so does the other.
A correleation is a statistical indicator of the relationship between variables.
These variables change together : they covary. But this covariation isn't necessarily due to direct or indirect casual link.
4th statement is doesn't cause serial correlation.

2. Which of the following, correctly depicts the intra industry trade index (Т)?

Correct Answer: (b)
Solution:

Intra-industry trade is the trade that occurs between countries but within the same industry.
The Products that are traded are of a similar type such as oil or cars.
2) Value of T ranges from 0 to 1. If T = 0, there is no intra industry trade
If T = 1, exports and imports of a good are equal. Intra industry trade is maximum.

3. If the marginal propensity to import is high, then which of the following will be true?/

A. The IS curve is steeper
B. It will create currency appreciation
C. It will make the LM curve flatter
D. For each level of income, the interest rate must be high to achieve external balance
E. For each level of interest rate, higher income will be generated to achieve BOP equation
Choose the correct answer from the options given below:

Correct Answer: (a) A and D only
Solution:

The marginal propensity to import is high-
(A) The IS curve is steeper
(D) For each level of income, the interest rate must be high to achieve external balance.

The MPM is the amount of imports increase or decrease with each unit rise or decline in disposable income. The idea is that rising income for business and households spurs greater demand for goods from abroad and vice versa.

4. Match List-I with List-II.

List-I (Concept)List-II (Economist)
A. Inflation targetingI. Milton Friedman
B. Natural rate of employmentII. Kydland and Prescott
C. Time inconsistency problemIII. Robert Lucas Jr.
D. Rational ExpectationIV. J.B. Taylor

Choose the correct answer from the options given below:

Correct Answer: (a) A-IV, B-I, C-II, D-III
Solution:

The correct match is as follows -

List-I (Concept)List-II (Economist)
A. Inflation targetingIV. J.B. Taylor
B. Natural rate of employmentI. Milton Friedman
C. Time inconsistency problemII. Kydland and Prescott
D. Rational ExpectationIII. Robert Lucas Jr.

5. In the two variable regression model, where the number of observation is 13, the variance of error term is 0.893652 and TSS is 105.1188. Find the coefficient of determination (r²).

Correct Answer: (b) 0.9065
Solution:

6. Match List-I with List-II.

List-IList-II
A. Specific Factor ModelI. Staffan B. Linder
B. Product life cycle hypothesisII. Stolper-Samuelson theorem
C. Preference similarity hypothesisIII. Raymond Vernon
D. Price magnification effectIV. Paul Samuelson and Ronald Jones

Choose the correct answer from the options given below:

Correct Answer: (b) A-IV, B-III, C-I, D-II
Solution:

The correct match is as follows:-

List-IList-II
A. Specific Factor ModelIV. Paul Samuelson and Ronald Jones
B. Product life cycle hypothesisIII. Raymond Vernon
C. Preference similarity hypothesisI. Staffan B. Linder
D. Price magnification effectII. Stolper-Samuelson theorem

7. Arrange the following states with respect to estimates of yield of coarse cereals (kg per hectare) in the year 2021-22, ascending order:

A. Bihar
B. Punjab
C. Tamil Nadu
D. Assam
E. Gujarat
Choose the correct answer from the options given below:

Correct Answer: (e) (*)
Solution:

Coarse cereals (kg per hectare) 2021

StateValue
Gujarat2215
Assam3632
Tamil Nadu3763
Punjab3657
Bihar3465

8. Arrange the following rounds of tariff negotiations of GATT sequentially (oldest being the first):

A. Dillon Round
B. Torquay Round
C. Kennedy Round
D. Geneva Round
E. Tokyo Round
Choose the correct answer from the options given below:

Correct Answer: (c) D, B, A, C, Е
Solution:
Round NameYear / Start Date
1. Geneva Round(1947)
2. Torquay Round(1950)
3. Kennedy Round(1964-67) / (4th May, 1964)
4. Dillon Round(1960)
5. Tokyo Round12 September, 1973

9. Arrange the following environment meet according to their years of occurrences (oldest being first):

A. The Paris Agreement (COP 21)
B. Stockholm +50
C. Earth Summit
D. United Nations Conference on the Human Environment in Stockholm
E. Rio +20
Choose the correct answer from the options given below:

Correct Answer: (b) D, C, E, A, B
Solution:

United Nation conference on the Human Environment in stockholm - 1972
Earth Summit - 1992
Rio + 20-2012
The Paris Agreement (COP21) - 2015
Stockholm + 50 - 2022
D, C, E, А, В

10. Which of the following is not a features of the Coase Theorem?

Correct Answer: (d) There exists wealth/income effects
Solution:

The Coase theorem requires three fundamental conditions. First is for the information to be completely liquid between the two bargaining parties.

Secondly, both parties should not have any transaction costs caused by the bargaining process. And finally, agents must be rational and seek to maximize their utility.