NTA UGC NET/JRF Exam, Dec. 2020/June 2021 Economics

Total Questions: 100

51. Identify the proper sequence in the traditional econometric methodology of conducting research

A. Data collection
B. Policy prescription
C. Testing of hypothesis
D. Formulation of hypothesis
Choose the correct answer from the options given below:

Correct Answer: (d) D, A, С, В
Solution:

The proper sequence in the traditional econometric methodology of conducting research.
1. Formulation of hypothesis
2. Data collection
3. Testing of hypothesis
4. Policy prescription

52. According to Ronald Coase, which of the following statements is CORRECT for pollution control?

Correct Answer: (a) Providing property rights to polluters and pollutes
Solution:

According to Ronald Coase providing property rights to polluters and pollutes is true for pollution control. Coase argues that property rights are much less of a factor.

Consider the example that, assume that company is given the right to pollute the air around the factory and town. The town could still pay the coal plant to reduce its level of pollution without having to reallocate the property rights to the air.

53. Indentify which one of the following statements is CORRECT:

Correct Answer: (a) A⁻¹ is equal to Adj (A) if the value of the determinant A is unity
Solution:

A⁻¹ is equal to Adj (A) if the value of the determinant A is unity is in correct statement.

54. Which of the following are a source of market failure?

A. The existence of public goods
B. The presence of externalities
C. The fact that some goods are rivals in consumption
D. The existence of monopolies
Choose the correct answer from the options given below:

Correct Answer: (b) A, B, and D only
Solution:

Types of Market Failure
1. Public good
2. Inequality
3. Monopoly
4. Merit good
5. Factor immobility
6. Agriculture
7. Cyclical instability
8. Externalities
9. Demerit goods
Sources of a market failure:-
A. The existence of public goods.
B. The presence of externalities.
C. The existence of monopolies.

55. Arrange the following committees appointed for the Banking sector in India in chronological order :

A. Urjit Patel Committee
B. Goiporia Committee
C. Narasimham Committee-1
D. Chakravarty Committee
Choose the correct answer from the options given below :

Correct Answer: (c) D. B, С, А
Solution:

1. Chakravarty Committee-The Sukhamoy Chakravarty Committee was formed in December, 1982 to evaluate India's Monetary System.

2. Goiporia Committee-This committee was set up in 1990 by the Reserve Bank of India (RBI). The Goiporia Committee was given mandate of exploring and giving recommendations for improving customer service in the banks.

3. Narasimham Committee-The Narasimham Committee 1 was established in 1991 by Finance Minster Manmohan Singh to examine the functioning of banks. In August 1991, a nine-member committee was appointed to suggest reforms to the financial system. The committee submitted its recommendations and the report in December 1991 to Parliament.

4. Urjit Patel Committee-It was established by the Reserve Bank of India (RBI) in 2013 to review and strengthen the monetary policy framework. Dr. Urjit Patel, then Deputy Governor of RBI, was appointed as the chairman of the committee.

56. As output expands, LAC curve falls. This is due to:

Correct Answer: (b) Economies of scale
Solution:

When the output expands and the LAC (Long-Run Average Cost) Curve falls, this is primarily due to economies of scale;
meaning that as a firm produces more, the average cost per unit of output decreases due to advantages like better specialization of labor, improved technology, and efficient use of resources as the scale of production increases.

57. The sampling distribution of mean based on a sample of 13 units selected without replacement shows a variance of 5 units. It the population consists of 40units astimate the variance of the population

Correct Answer: (c) 86.67
Solution:

sample units (n) = 13
population consists of (N) = 49 units
σ² sample variance = 5 (given)
σ² sample variance = ? (find)

58. Given below are two statements:

Statement I: Social Welfare Function (SWF) is a sort of social indifference map consisting of the Social Indifference Curves (SICs) which shows the various combination of utilities that gives the same level of social welfare (SW).

Statement II: Social Indifference Curves (SICs) may not be convex or concave to the origin
In light of the above statements, choose the most appropriate answer from the options given below:

Correct Answer: (a) Both Statement I and Statement II are correct
Solution:

Social Welfare Function (SWF) is a type of social indifference map with Social Indifference Curve (SIC) showing the different combinations that give the same level of social welfare (SW). Social Indifference curves may not be convex or concave from origin.

59. Which one of the following measures of central tendency will be the most appropriate to use if the data relates to rates, proportions and ratios?

Correct Answer: (b) Geometric Mean
Solution:

The geometric Mean is the average Value or mean which signifies the central tendency of the set of numbers by finding the product of their values.

Basically, we multiply the numbers altogether and take the nth root of the multiplied numbers, where n is the total number of data values. For example for a given set of two numbers such as 4 & 1 the geometric mean is equal to √(4)×(1) = √4 = 2

60. Consider some of the schemes/ programs introduced by the Government of India to enhance agriculture productivity and farmer's income. Arrange them in chronological order of their appearance.

A. Soil Health Card Scheme
B. Kisan Credit Card Scheme
C. Pradhan Mantri Fasal Bima Yojana
D. Doubling Farmers' income program
Choose the correct answer from the options given below:

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

Kisan Credit Card Scheme is a program that provides farmer with timely credit for their agricultural and non-farm needs. The scheme was launched in 1998 to help farmers with financial shortfalls during crop cultivation, harvesting and maintenance.

2. Soil Health Card Scheme was launched by Prime Minister Narendra Modi on February 19, 2015 in Suratgarh, Rajasthan. The scheme aims to help State Government issue soil health cards to farmers across India.

3. Pradhan Mantri Fasal Bima Yojana scheme was launched in India by Ministry of Agriculture and Farmers Welfare, New Delhi from Kharif 2016 season onwards. The scheme provide crop insurance to farmer to protect their yields from non-preventable natural risks.

4. Doubling farmer's income program-The Indian Government set a target to double farmer's income by 2022, as part of its Doubling Farmer's Income (DFI) program. Prime Minister Narendra Modi announced this goal in a video message in February, 2016. The DFI committee was established to oversee the implementation of recommendations to achieve this goal.