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

Total Questions: 100

61. Which of the following are the essential features of weak sustainability?

A. It considers human-made capital and natural capital as close substitutes.
B. It puts emphasis on the initial size of an economy since the size of the initial capital stock is considered relevant.
C. It requires from each generation to ensure that their actions do not compromise the productive capacity of the generations to follow.
D. The composition of the capital stock of an economy does not hold great significance.
E. It renders natural capital as an absolute necessity for sustainaing net national income over an indefinite period.
Choose the correct answer from the options given below.

Correct Answer: (a) A. Cand D only
Solution:

Essential features of weak sustainability
(1) Substitutability
Weak Sustainability assumes that natural capital and manmade capital can be used as perfect substitutes.

(2) Optimistic
Weak Sustainability accepts technological progress and has an optimistic approach.

(3) Trade - Offs Weak Sustainability allows trade offs between social, environmental, and economic aspects.

(4) Non-decreasing value
Weak sustainability is characterized by a nondecreasing value of aggregate income and environmental quality.
Weak sustainability is based on the savings rule, which states that an economy achieves weak sustainability if it saves more than the combined depreciation of the two kinds of capital.

62. Which of the following are part of non-tariff barriers?

A. Import quotas
B. Voluntary export restraint
C. Export subsidy
D. Compound tariff
E. Ad Volorem tariff
Choose the correct answer from the options given below.

Correct Answer: (c) A, B and C only
Solution:

Parts of non-tariff barriers.
(1) Import quotes
(2) Voluntary export restrait
(3) Export subsidy

63. Marshall-Lerner condition states that.

A. Devalution will improve the country's balance of payments if the sum of price elasticities of demand for exports and imports in absolute terms is greater than one.

B. Devalution will increase the balance of payments deficit if the sum of the price elasticities of demand for exports and imports is less than one.

C. Devaluation will have no effect on the balance of payment situation if the sum of the price elasticities of demand for exports and imports is equal to one.

D. In no case, devalution can improve the balance of payment disequilibrium if either the price elasticities of demand for export or that of import is zero.

E. Marshall-Lerner condition has no relation with BOP situation.
Choose the correct answer from the options given below.

Correct Answer: (d) A, B and C only
Solution:

Condition of Marshal Lerner states that it's an economic theory that states that a country's trade balance can improve if a currency depreciates and the sum of the absolute values of its import and export price elasticities is greater than one :

Explanation : The condition is based on the idea that a country's trade balance is the value of its exports minus the value of its imports. If the condition is satisfied, then a country with a zero trade deficit will see an improvement in its trade balance after a currency depreciation.

64. Match List-I with List-II.

List-I (Description)List-II (Model)
A. One firm sets its output before other firms do.I. Cournot Model
B. Each firm correctly assumes how much its competitor will produce and sets its own production level.II. Bertrand Model
C. Firms are reluctant to change price even if costs or demand change.III. Stacketberg Model
D. Each firm treats the price of its competitors as fixed and all firms decide simultaneously what price to charge.IV. Sweezy Model

Choose the correct answer from the options given below.

Correct Answer: (c) A-III, B-I, C-IV, D-II
Solution:

The correct match is as follows:-

List-I (Description)List-II (Model)
A. One firm sets its output before other firms do.III. Stackelberg Model
B. Each firm correctly assumes how much its competitor will produce and sets its own production level.I. Cournot Model
C. Firms are reluctant to change price even if costs or demand change.IV. Sweezy Model
D. Each firm treats the price of its competitors as fixed and all firms decide simultaneously what price to charge.II. Bertrand Model

65. Match List-I with List-II.

List-I (Economist)List-II (Theory/Concept)
A. Robert SolowI. Neoclassical growth theory
B. Paul Romer and Robert LucasII. Unemployment-Output
C. Paul SamuelsonIII. Endogenous growth theory
D. OkunIV. Foundation of Economic growth

Choose the correct answer from the options given below.

Correct Answer: (c) A-I, B-III, C-IV, D-II
Solution:

The correct match is as follows -

List-I (Economist)List-II (Theory/Concept)
A. Robert SolowI. Neoclassical growth theory
B. Paul Romer and Robert LucasIII. Endogenous growth theory
C. Paul SamuelsonIV. Foundation of Economic growth
D. OkunII. Unemployment-Output

66. Match List-I with List-II.

List-IList-II
A. Detecting Serial CorrelationI. Goldfeld-Quandt test
B. Detection of HeteroscadasticityII. The Run’s test
C. Detection of MulticollinearityIII. Ramsay’s RESET test
D. Test of specification errorIV. Condition Index

Choose the correct answer from the options given below.

Correct Answer: (c) A-IV, B-I, C-III, D-II
Solution:

The correct match is as follows -

List-IList-II
A. Detecting serial correlation- The Run's test
B. Detection of Heteroscadasticity- Goldfeld-Quandt test
C. Detection of Multicollincarity- Condition Index
D. Test of Specification error- Ramsay's RESET test

67. Match List-I with List-II.

Correct Answer: (c) A-IV, B-I, C-II, D-III
Solution:

The correct match is as follows -

68. Match List-I with List-II

List-IList-II
A. Metzler ParadoxI. Violation of Stolper-Samuelson theorem
B. Beachhed EffectII. Exporters may be reluctant to increase prices by the full amount of the dollar depreciation
C. Dutch diseasesIII. Loss of relative competitiveness in its traditional industrial sector
D. J CurveIV. Nation’s trade balance may actually worsen soon after devaluation or depreciation

Choose the correct answer from the options given below.

Correct Answer: (c) A-I, B-II, C-III, D-IV
Solution:The correct match is as follows -
List-IList-II
A. Metzler ParadoxI. Violation of Stolper-Samuelson theorem
B. Beachhed EffectII. Exporters may be reluctant to increase prices by the full amount of the dollar depreciation
C. Dutch diseasesIII. Loss of relative competitiveness in its traditional industrial sector
D. J CurveIV. Nation’s trade balance may actually worsen soon after devaluation or depreciation

69. Match List-I with List-II

List-IList-II
A. Principal agent problemI. Use of resources are more than desir
B. Moral Hazard ProblemII. One's actions are unobserved but it can affect the magnitude of payment
C. Tragedy of commonsIII. An individual pursue his/her own goal than the goal of the employer
D. Problem of LemonsIV. Sellers have better information about the product quality than buyers.

Choose the correct answer from the options given below.

Correct Answer: (a) A-III, B-II, C-I, D-IV
Solution:
List-IList-II
A. Principal agent problemIII. An individual pursue his/her own goal than the goal of the employer
B. Moral Hazard ProblemII. One's actions are unobserved but it can affect the magnitude of payment
C. Tragedy of commonsI. Use of resources are more than desir
D. Problem of LemonsIII. Sellers have better information about the product quality than buyers.

70. Match List-I with List-II

List-IList-II
A. Launch of S&P CNX NiftyI. July, 1995
B. Establishment of Investor Protection Fund in NSE II. May, 1998
C. Launch of NSE's website : www.nseindia.comIII. April, 1996
D. NSE recognized as a stock exchangeIV. April, 1993

Choose the correct answer from the options given below.

Correct Answer: (b) A-III, B-I, C-II, D-IV
Solution:

The correct match is as follows -

List-IList-II
A. Launch of S&P CNX NiftyΙII. April, 1996
B. Establishment of Investor Protection Fund in NSE. I. July, 1995
C. Launch of NSE's www.nseindia.comII. May, 1998
D. NSE recognized as a stock exchangeIV. April, 1993