NTA UGC NET/JRF Exam, Dec. 2019 Economics (Shift-I)

Total Questions: 95

51. On which date and year GST became effective in India?

Correct Answer: (c) 1ˢᵗ July, 2017
Solution:

The tax came into effect from 1 July, 2017 through the implementation of the one hundred and first amendment to the constitution of India by the Government of India.

1 July is celebrated as GST Day. The GST replaced existing multiple taxes levied by the central and State Governments.

52. The whole burden of a tax will be borne by the consumer if

Correct Answer: (c) The demand for a commodity is inelastic and supply is perfectly elastic
Solution:

The whole burden of a tax will be borne by the consumer if the demand for a commodity is inelastic and supply is perfectly elastic, then the buyer bears the entire burden of a tax.

This is because the demand curve becomes a vertical line parallel to the y-axis, and an increase in supply leads to an increase in price.

53. The elements given below are some of the parts of the M₄ Money supply in Indian Economy:

(a) Broad Money (M₃)
(b) All deposits with post office saving banks
(c) National saving certificates
Select the most appropriate option which constitutes M₄:

Correct Answer: (a) only (a) and (b)
Solution:

M₄ = Currency with Public + Demand deposits with commercial banks + time deposits with commercial banks + other deposits with RBI + Deposists with post office saving banks.
M₄ = (M₃) Broad Money + All deposits with post office saving banks.

54. Which among the following are the main pillars of the BASEL III norms?

(a) Minimal Capital Requirements
(b) Supervisory Review Process
(c) Markets Discipline
(d) Maximizing Return on Capital
Choose from the options given below:

Correct Answer: (a) (a), (b) and (c) only
Solution:

The three pillars of Basel III are:-
Pillar 1: Minimal Capital Requirement.
Pillar 2: Supervisory Review Process.
Pillar 3: Maximizing Return on Capital.

55. Kaldor's growth model incorporates some of the following assumptions:

(a) Total saving include savings out of wages and saving out of profits
(b) Marginal propensity to save out of wages is equal to the marginal propensity to save out of profits
(c) Output consists of wages and profits
(d) There is less than full employment
Choose the correct option:

Correct Answer: (d) (a) and (c)
Solution:

The Kaldor Model of economic growth, due to Nicholas Kaldor is the alternative view against traditional neoclassical theories of growth.
Kaldor's growth model incorporates.
(a) Total savings include savings out of wages and savings out of profits.
(c) Output consists of wages and profit. Choose the correct options from those given

56. Who among the following economists are associated with the 'Balanced Growth' doctrine?

(a) W. A. Lewis
(b) H. W. Singer
(c) R. Nelson
(d) Ragnar Nurkse
Choose the correct option:

Correct Answer: (a) (a) and (d)
Solution:

The doctrine of balanced growth states that there should be balanced growth of all sectors of the economy simultaneously. It calls for a big push or a large scale planned investment in a wide range of activities in order to overcome the low level equilibrium trap.

The balanced growth doctrine is associated with several economists, including:-
(a) Ragnar Nurkse (b) A.W. Lewis (c) Rosentein Rodan (d) Allyn Young

57. Consider the following statements about the social cost-benefit analysis for viability of projects. Which of the following are true for this analysis?

(a) IRR should be greater than Social Discount Rate
(b) NPV should be equal to zero
(c) Shadow prices are used for calculation of benefits and costs
Choose the most appropriate options for those given below:

Correct Answer: (a) (a) and (c)
Solution:

That statements about the social cost-benefit analysis for viability of projects.
True for this analysis are:-
(a) IRR should be greater than Social Discount Rate.
(c) Shadow prices are used for calculation of benefits and costs.

58. Consider the following statements about the correct order of the stages of demographic transition associated with economic development:

(a) Low birth rate with low death rate
(b) High birth rate with high death rate
(c) High birth rate with low
Choose the correct option:

Correct Answer: (a) (b), (c), (a)
Solution:

Correct order of the stages of demographic transition associated with economic development.
1. High birth rate with high death rate.
2. High birth rate with low death rate.
3. Low birth rate with low death rate.

59. Which one of the following institutions is related with the Green/Blue Box Subsidies?

(a) United Nations
(b) World Bank
(c) World Tourism Organization
(d) World Trade Organization
Choose the correct options from those given below:

Correct Answer: (c) only (d)
Solution:

The World Trade Organization is related to the green/blue box subsidies. The agricultural subsidies are put by WTO into three boxes i.e., the green box, the blue box and the amber box.

60. Consider the following statements:

(a) The main objective of the National Agricultural Insurance Scheme (NAIS) is to protect the farmers against losses suffered by them due to crop failure on account of national calamities

(b) The National Agricultural Insurance Scheme (NAIS) is available to all the farmers both loanee and non-loanee inrrespective of their size of holding

Which of the statements given above is-are correct ?

Correct Answer: (c) Both (a) and (b)
Solution:

(a) Yes, the main objective of the National Agricultural Insurance Scheme (NAIS) is to protect the farmers against losses suffered by them due to crop failure on account of national calamities.

(b) The National Agricultural Insurance Scheme (NAIS) available to all the farmers both loanee and non-loanee irrespective of their size of holding is also-correct statement.