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

Total Questions: 100

71. A stationary population is that when population growth is

Correct Answer: (c) Grows at zero rate
Solution:

A stationary population is that when population growth is -
grows at zero rate
Important points :-
(1) A population is considered stationary if the growth rate is zero and the age structrue is constant.
(2) If thus follows that a population is considered nonstationary if either its growth rate is non-zero and/or its age structure is non-constant. Public expenditure must be financial through increased taxes only.

72. Which of the following strategy is not correct in order to have expansionary impact of fiscal policy?

Correct Answer: (b) Public expenditure must be financed through increased taxes only
Solution:

Expansionary impact is that when there is increase in Aggregate demand which leads to increase the income.
So. the incorrect statement in order to have expansionary impact of fiscal policy is

73. Write the steps to estimate the ECM/VAR model in time series.

A. Unit root test
B. ACF and PACF test
C. EСM/VAR
D. Inputting data
E. Cointegration test
Choose the correct answer from the options given below:

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

Steps to estimate the ECM/VAR model in time series.
1. Inputing data
2. ACF and PACF test
3. Unit root test
4. Cointegration test
5. ECM/VAR

74. Given below are two statements:

Statement I : Devaluation always correct a chronic balance of payments deficit. Statement II : An expected devaluation leads specultive, capital outflows from domestic country.
In the light of the above statements, choose the correct answer from the options given below:

Correct Answer: (d) Statement I is false but statement II is true
Solution:

Marshall - Lerner condition states that a devaluation or depreciation of a currency will help reduce a current account deficit, if the sum of the price elasticity of demand (PED) for exports and imports is greater than 1 (price elastic).

Note:-
1) If the sum of the elasticity of demand for exports and imports is greater than 1 then devaluation will improve BOP.
2) If the sum of the elasticity of demand for export and import is less than one devaluation will worsen the BOP.
3) If the sum of the elasticity of demand for export and import is equals to one then the devaluation will not change in BОР.

II. Currency devaluation will often trigger the large scalelegal capital flight, and foreign investors run away from such countries before their assets lose too much its value.

75. The strategy of choosing the policy which has the best possible outcome is known as_______

Correct Answer: (b) Maxi max
Solution:

The maximax approach is a decision-making strategy that involves choosing the option with the best possible.
Outocome or payoff. It's also known as the maximization approach or an optimistic strategy.

76. The irrelevance of money for real variables in the classical system is called

Correct Answer: (b) Monetary neutrality
Solution:

The irrelevance of money for real variables in the classical system is called monetary neutrality.
Notes:- Neutrality of money is the idea that a change in the stock of money affects only nominal variables in the economy such as prices, wages and exchange rates, with no effect on real variables, like employment, real GDP, and real consumption.
Neutrality of money is an important idea in classical economies and is related to the classical dichotomy.

77. Which of the following are correct?

A. Current account includes merchandise export
B. Current account do not includes merchandise export
C. Current account includes invisible export
D. Current account do not includes invisible export
E. Current account includes both merchandise exports and imports and invisible exports and imports
Choose the correct answer from the options given below:

Correct Answer: (b) A, C, and E only
Solution:

The correct statements are -
1. Current account includes merchandise export.
2. Current account includes invisible exports.
3. Current account includes both merchandise exports and imports and invisible exports and imports.

78. Match List I with List II:

List I (Application)List II (Statistical Test)
A. Testing of overall significanceI. Chi-square test
B. Testing the independence of attributesII. Jarque-Bera test
C. Testing the significance of regressionIII. F-test
D. Normality testIV. t-test

Choose the correct answer from the options given below:

OptionABCD
(a)IIIIIIIV
(b)IIIIIVII
(c)IIVIIIII
(d)IIIIIVII
Correct Answer: (b)
Solution:
List I (Application)List II (Statistical Test)
A. Testing of overall significanceIII. F-test
B. Testing the independence of attributesI. Chi-square test
C. Testing the significance of regressionIV. t-test
D. Normality testII. Jarque-Bera test

79. Match List I with List II:

List I (State PCI in 2020-21)List II (Value)
A. Andhra PradeshI. Rs. 98,418
B. Madhya PradeshII. Rs. 1,09,730
C. OdishaIII. Rs. 1,21,267
D. West BengalIV. Rs. 1,70,215

Choose the correct answer from the options given below:

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

The correct match is as follows -

List I (State)List II (Value)
A. Andhra Pradesh PCI in 2020-21(IV) 170215
B. Madhya Pradesh PCI in 2020-21(I) 98418
C. Odisha PCI in 2020-21(II) 109730 0
D. West Bengal PCI in 2020-21(III) 121267

80. Arrange the states in descending order based on percentage of population who are multidimensionally poor based on NITI Aayog Report 2021.

A. Bihar
B. Odisha
C. Rajasthan
D. Uttar Pradesh
E. Madhya Pradesh
Choose the correct answer from the options given below:

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

India Headcount ratio.
Bihar~52%
Uttar Pradesh ~ 37.79%
Madhya Pradesh ~ 36%
Rajasthan ~ 29.46%
Odisha~ 29.35%
According to Global MPI 2021, India's rank is 66 out of 109 countries.