NTA UGC NET/JRF Exam, December-2022 Economics (Shift-I)

Total Questions: 100

1. Which of the followins is not true in case of indifference curves?

Correct Answer: (d) Indifference curve for two normal goods is a downward sloping straight line.
Solution:

Indifference curve for two normal goods is a downward sloping but not straight line its curve of convex shape.

(1). I.C. being downward sloping means that when consumption of one good increases then consumption of other goods decreases slopes downward or it shows negative slope.

(2). The degree of convexity of an indifference curve depend upon the rate of fall in the marginal rate of X for Y.

The two goods are perfect substitutes of each other the IC is a straight line.
Greater the MRS greater will be the convexity of the IC. In the perfect substitute goods MRSxy is equal to one.

(3). The two goods are perfect complementary then IC become straight line which is Right angle bent which is convex to the origin. In perfect complimentary goods MRSxy is equal to zero incase of Bad' commodity IC shift backward.

2. Which one of the following is not true in case of producer's equilibrium?

Correct Answer: (d)
Solution:

For Producer's Equilibrium's case

3. A game in which the gains or losses of one player or firm do not come at the expenses of or provide equal benefit to the other player or firm, is known as________.

Correct Answer: (b) Non-zero sum gase
Solution:

A Non-Zero-Sum Game is a situation where one's win does not necessarily mean another loss, and one's loss does not necessarily mean that the other party wins. In a Non-Zero-Sum Game, all parties could gain, or all parties could loss.

4. The condition of preferring a risky income to a certain income with the same expected value is referred as.

Correct Answer: (b) Risk loving
Solution:

In this condition of preferring a risky income to certain income will be in case of risk loving.

Risk lovers is those person who is willing to take more risks while investing in order to earn higher returns.

Risk averse are those who involves in lesser or no risk & they prefer investing in fixed deposits & bonds etc.
Risk neural investors will not seek much information on future returns but focus on the gains

5. _______ arises when the firm can produce any combination of two outputs more cheaply than could two independent firms that each produced a single output.

Correct Answer: (d) Economies of scope
Solution:

In this case economics of scope arises firm involves the production in combination of two outputs. An economy of scope means that the production of one good reduces the cost of producing another related good.

Economies of scope occurs when producing a wider variety of goods or services in tandem is more cost effective for a firm than producing less of a variety, or producing each good independently.

6. In which oligopoly model, firms produce homogenous goods and each firm treats the price of its competitors as fixed and all firms decide simultaneously, what price to change?

Correct Answer: (a) Betrand model
Solution:

It is the case of Bertrand model which considers firms that make an identical product but compete on price and make their pricing decisions simultaneously. The Cournot model considers firms that make an identical product and make output decisions simultaneously.

7. Who wrote that "every man thus lives by exchanging or becomes in some measure a merchant, and the society itself grows to be what is properly a commercial society".

Correct Answer: (d) Adam Smith
Solution:

Adam Smith wrote that " Every man thus lives by exchanging or becomes in some measure a merchant and the society itself grows to be what properly a commercial society.
" Many different commodities it is probable. were successively both thought of and employed for this purpose.

8. The Sticky-price Model is.

Correct Answer: (a) The upward sloping short run aggregate supply curve
Solution:

The Sticky wage theory was introduced by John Maynard keynes, He calls it nominal rigidity. The Sticky-Wage model of the upward sloping short run aggregate supply curve is based on the labour market.

9. If the demand for labour increases, then.

Correct Answer: (c) Both 1 and 2 happen
Solution:

When demand for labour increases then the amount of Real wage and amount of labour employed both will rise.

10. Macroeconomics distinguishes between real economy and_______ .

Correct Answer: (b) Monetary economy
Solution:

Macroeconomics distinguishes between real economy and monetary economy. Virtual economy is the online economy. Normative economy or ideologically prescriptive Judgement. Underground economy are demand illegal economy.