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

Total Questions: 100

81. According to the CMIE data (September, 2022) arrange the states in ascending order based on their unemployment rate.

A. Madhya Pradesh
B. Gujarat
C. Chhattisgarh
D. Assam
E. Uttarakhand
Choose the correct answer from the options given below.

Correct Answer: (b) C, D, E, A, B
Solution:
StateUnemployment Rate
A. Madhya Pradesh0.9
B. Gujarat1.6
C. Chattishgarh0.1
D. Assam0.4
E. Uttarakhand0.5

82. Arrange the rates in descending order based on 'Reserve Bank of India' data, December, 2022.

A. Cash Reserve Ratio
B. Repo rate
C. Bank rate
D. Reserve Repo Rate
E. Standing Deposit Facility Rate
Choose the correct answer from the options given below.

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

A. Cash Reserve Ratio - 4.5%
B. Repo Rate - 6.50%
C. Bank Rate - 6.75%
D. Reverse Repo Rate - 3.35%
E. Standing Deposit Facility Rate - 6.25%
C, B, E,A, D.

83. Arrange the followings chronologically in order of their introduction.

A. Ad hoc Treasury bills (T-bills)
B. 28 Days T-bills C. 14 Days T-bills
D. 364 Days T-bills
E. 182 Days T-bills
Choose the correct answer from the options given below.

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

The ad hoc Treasury Bills were periodically funded into dated securities from July, 1958.
28-days T-bills were introduced in year 1998.
A scrip of 14 days duration introduced form June, 1997.
Treasury bills having a maturity period off 364 days were first issued in April 1992.
182 days T-bills were introduced in November 1986 on an auction basis.
C. 14 days T-Bill (1997)
B. 28 days T-Bill (1998)

84. Arrange the following in chronological order starting from the oldest relating to the theory of money.

A. Patinkin
B. Fisher
C. Friedman
D. Marshall
E. Keynes
Choose the correct answer from the options given below.

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

A. Don Patinkin in 1956, through his work " Money, Interest, and Prices".
B. Irving Fisher provided the version of the transaction of the quantity theory of money in his book 'The Purchasing Power of Money' in the year 1911.
C. Chicago version of the quantity theory of money who led to the so called " Monetarist Revolution" is Professor Friedman. The demand for money theory published in November 1960.
D. Cash-balance ratio K, Marshall (1923) (38-40, 43-8) specified at least eight sets of variables determining it.
E. "Keynesian approach to the money demand theory was well developed Keynes (1930 and 1936)
B, D, E, А, С.

85. Arrange the trading groups as per their year of establishment starting from the oldest.

A. European Free Trade Association
B. North American Free Trade Agreement
C. Asia Pacific Economic Cooperation
D. Andean Community
E. Association of South-East Nations
Choose the correct answer from the options given below.

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

A. European Free Trade Association- 4 Jan, 1960
E. Association of South-East Asian Nations August 1967.
D. Andean Community - 1969
C. Asia Pacific Economic Cooperation- November 1989.
B. North American Free Trade Agreement - 1994
A, E, D, С, В.

86. Given below are two statements.

Statement I : Every point on the Contract curve is Pareto efficient because one person could not be made better off without making someone else worse off.

Statement II : Every point on the Contract curve necessarily indicates equal level of economic welfare for the society.

In light of the above statements, choose the most appropriate answer from the options given below.

Correct Answer: (c) Statement I is correct but Statement II is incorrect.
Solution:

The Statement I is correct because points on the contract curve indicate that no one can be made better off unless someone else is made worse off at points along the contract curve Statement II is incorrect.

87. Given below are two statements.

Statement I : A rising ratio of interest payments to GNP imposes a burden because taxation is needed to finance the interest payment and imposes a dead weight loss.

Statement II : A rising rate of interest payment in the budget tends to crowd out other public programs.

In light of the above statements, choose the correct answer from the options given below.

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

Statement I is correct.
Deadweight loss of taxation refers to the measurement of loss caused by the imposition of a new tax. This result from a new tax that is more than what is normally paid to the government's taxing authority.
* A rising rate of interest payment in the budget tends to crowd out other public program is correct statement.

88. Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R).

Assertion (A) : The low income countries are far more likely to borrow money to finance their public sector expenditure.
Reason (R) : Governments need not repay their loans, along with interest payment.

In light of the above statements choose the correct answer from the options given below.

Correct Answer: (c) (A) is true but (R) is false.
Solution:

Assertion is correct.
Low Income Countries are far more likely to borrow money to finance their public sector expenditure. And Government do repay their loans along with interest payment.
Hence. Reason is incorrect.

89. Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R).

Assertion (A): Partisan theory views macroeconomic policy outcomes as the result of ideologically motivated decisions by leaders of different political parties.

Reason (R): The parties represent constituencies with different preferences concerning macroeconomic variables.

In light of the above statements, choose the correct answer from the options given below.

Correct Answer: (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
Solution:

Partisan theories of macroeconomic policy postulate that political parties promote policies that are consistent with the preference of their core constituencies.

90. Given below are two statements.

Statement I : Supply side policies are long term measures to increase the productive capacity of the economy leading to an outward shift in the production possibility curve.

Statement II : Privatisation is the act of selling state owned assets in order to increase competition, productivity and efficiency.

In light of the above statements, choose the correct answer from the options given below.

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

Statement I is correct.
Supply side polices are government policies which seek to increase the productivity and efficiency of the economy. Supply side policies aim to increase long term competitiveness and productivity, and in the long run supply side policies can help increase the level of employment in an economy as firms expand and grow.

Statement II is also correct;
Privatization of specific government operations happens in a number of ways, though generally, the government transfer ownership of specific facilities or business process to private, for-profit company. Privatization generally helps governments save money and increase efficiency.