NTA UGC NET/JRF Exam, Dec. 2021/June 2022 Economics

Total Questions: 100

1. Match List I with List II:

List-IList-II
A. Absolute Income HypothesisI. Milton Friedman
B. Relative Income HypothesisII. J.M. Keynes
C. Permanent Income HypothesisIII. James Duesenberry
D. Life Cycle HypothesisIV. Franco Modigliani

Choose the correct answer from the options given below:

ABCD
(a)IIIIVIII
(b)IIIIIIIV
(c)IVIIIIIV
(d)IIIIIIIV
Correct Answer: (b)
Solution:
List-IList-II
A)Absolute Income Hypothesis-J.M. Keynes (1929-1994)
B)Relative Income Hypothesis-James Dusenberry (1948)
C)Permanent Income Hypothesis-Milton Friedman (1957)
D)Life Cycle Hypothesis-Franco Modigliani (1950)

2. Arrange the following events in sequence (the oldest one being first)

A. The Tokyo Round
B. The Uruguay Round
C. The Annecy Round
D. The Dillon Round
E. The Torquay Round
Choose the correct answer from the options given below:

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

GATT bilateral negotiating material by Round During the GATT (General Agreement on Tarrifs and Trade) years. eight round of tariff negotiations were held between 1974 and 1994.
1. Geneva (1947)
2. Anney (1949)
3. Torquay (1950-51)
4. Geneva (1956)
5. Geneva (1960-61) also known as the Dillon Round.
6. The Kennedy Round (1964-67).
7. The Tokyo Round (1973-79).
8. The Uruguay Round (1986-94).

3. Here is given sex ratio for different states of India for 2011

A. Gujarat : 942
B. Madhya Pradesh: 931
C. Odisha: 979
D. Tamil Nadu : 996
E Haryana: 862
Choose the correct answer from the options given below:

Correct Answer: (a) B, C and D only
Solution:

Sex ratio for different states of India for 2011-
A) Gujarat - 919
B) Madhya Pradesh - 931
C) Odisha - 979
D) Tamil Nadu - 996
E) Haryana - 879

4. Match List I with List II:

List IList II
A. FEMAI. 1969
B. MRTP ActII. 2002
C. Competition ActIII. 1973
D. FERAIV. 1999

Choose the correct answer from the options given below:

ABCD
(a)IIIIVIII
(b)IIIIIIIV
(c)IVIIIIII
(d)IVIIIIII
Correct Answer: (d)
Solution:

The correct match is as follows -

List IList II
A. FEMAIV. 1999
B. MRTP ActI. 1969
C. Competition ActII. 2002
D. FERAIII. 1973

5. If the income effect for a good is in the opposite direction as the substitution effect, but the substitution effect dominates then the good is

Correct Answer: (b) Inferior but not giffen
Solution:

If the income effect for a good is in the opposite direction as the substitution effect, but the substitution effect dominantes then the good is inferior but not giffen.
Notes:-
(1) Inferior goods are those goods whose demand falls down the rise in consumer income.
(2) And demand increases with decreases in income.
(3) In inferior goods income effect is less than substitution effect. (YE < SE).
(4) Inferior goods have easily available substitute.
The income and substitution effect work in opposite direction for an inferior good.

6. The fitted regression equation is given by Y₁ = -10 + 0.6X. What is the value of the residual at the point X = 40, Y = 60

Correct Answer: (b) 46
Solution:

y₁ = -10 + 0.6 x
x = 40
y = 60
y₁ = -10 + (0.6x + U)
60 = -10 + 0.6 × 40+U
60 = -10 + 24 + U
U =  60-14 = 46

7. In the Mundell-Fleming model, under floating exchange rate, which policy is more effective to influence aggregate income?

Correct Answer: (b) Monetary policy
Solution:

In the Mundell-Fleming model, under floating exchange rate, Monetary policy is more effective to influence aggregate income.
Explanation -
In an open economy with flexible exchange rates, a country's central bank can use monetary policy to control domestic output without worrying about a balance of payments problem.

This is because monetary policy can affect aggregate demand through interest rates, which change the exchange rate and the international competitiveness of exports & imports.

8. Which of the following hold good for Lewis model of development?

A. Unlimited supply of labour
B. Marginal productivity of labour in the subsistence wage
C. Dual economy with a modern sector and a subsistence sector
D. Agricultural sector subject to increasing returns
E. Model that explains the crucial role of capitalist surplus in the development process Choose the more appropriate answer from the options given below:

Correct Answer: (a) A, B, C, E only
Solution:

Arther lewis developed his theory utilization of surplus manpower in 1950. He wrote famous book - "economic development with unlimited supply of labour". Lewis gave two sector surplus labour model.

He focused on structural transformation of primary subsistence economy. Important point - Statements that hold good for Lewis model development -
(1) Unlimited supply of Labour.
(2) Marginal productivity of labour in the subsistence sector is equal to, or less than, subsistence wage.
(3) Dual economy with a modern sector anda subsistence sector.
(4) Model that explains the crucial role of capitalist surplus in the development process.

9. Provide proper chronological order of different schemes launched in India

A. Pradhan Mantri Jan Aushadhi Yojana
B. Pradhan Mantri Ujjawala Yojana
C. Atal Pension Yojana
D. PM Jan Dhan Yojana E. Ayushman Bharat Yojana
Choose the correct answer from the options given below:

Correct Answer: (d) D, C, A. B, Е
Solution:

Pradhan Mantri Jan Dhan Yojana (PMJDY) has been a flagship programme of the government of
India→
(1) PMJDY is helpful in inclusive development.
(2) It is leading to women empowerment.
(3) More than 45 crore people have benefitted so far under PMJDY.
Important Notes:-

PMJDY is a financial inclusion program lauched by the GOI to provide banking services to all households in the country.
The program aims to ensure that everyone has access to financial services like bank accounts, credit, insurances, and pensions.

10. Which of the following modern Indian Economic thinker had not gone abroad for study or work?

Correct Answer: (d) Deen Dayal Upadhyaya
Solution:

Deen Dayal Upadhyay took a BA degree at the Sanatan Dharma College Kanpur, in 1939 he moved over to Agra and joined St- John's College Agra to pursue a master's degree in English literature but could not continue his studies.