NTA UGC NET/JRF Re-Exam, June-2024 Economics

Total Questions: 100

21. Gross domestic Product or GDP is defined as

Correct Answer: (a) GDP = Aggregate Domestic Income + Indirect Taxes + Depreciation
Solution:

Gross Domestic product (GDP) is the total monetary value of all goods and services produced within a country during a specific period of time. It's a common way to measure the size of an economy and is used to assess a country's economic health.
GDP = Aggregate Domestic Income + indirect taxes + Depreciation

22. Which of the following is not an assumption of Coase theorem related to externalities and environmental problems?

Correct Answer: (b) Presence of income effect
Solution:

The key assumption of the coase theorem regarding externalities and environmental problems is that property rights must be clearly defined and transaction costs must be minimal or non-existent.

Meaning that parties affected by an externality can easily negotiate and bargain amongst themselves to reach an efficient outcome without government intervention, regardless of who initially holds the property rights.

Key points about the coase theorem assumptions.
(1) Clear property rights.
(2) Low transaction costs.
(3) Perfect information's.
Both parties involved should have complete information about the situation and the potential costs and benefits of different outcomes.

23. Heteroscadesticity may arise due to various reasons. Which one of the following is not a reason?

Correct Answer: (b) Correlation of variables over time
Solution:

Correlation of Variables over time are not the reason for arise of Heteroscadesticity.

24. Match List-I with List-II.

List-IList-II
(A) Endogenous variable(I) Significance of Autocorrelation coefficient
(B) Count R²(II) Simultaneous equation
(C) Ljung Box Statistic(III) Panel data regression
(D) Least square dummy variable model(IV) Logit regression

Choose the correct answer from the options given below

Correct Answer: (d) (A)-(II), (B)-(IV), (C)-(I), (D)-(III)
Solution:
List-IList-II
(A) Endogenous variableSimultaneous equation
(B) Count  R²Logit regression
(C) Ljung Box StatisticSignificance of Autocorrelation coefficient
(D) Least square dummy variable modelPanel data regression

25. Consider the following statement:

(A) Ecological footprint is a measure of human demand on entire ecosystem
(B) Тop down approach to development focuses stress on community participation
(C) Millennium Development Goals (MDGs) were assumed to be achieved by year 2016 (D) Sustainable Development Goals (SDGs) comprises 17 goals
Choose the correct answer from the options given below

Correct Answer: (a) (A), (D) only
Solution:

Correct statements are-
(i) Ecological footprint is a measure of human demand on entire ecosystem.
(ii) Sustainable Development Goals (SDGs) comprise of 17 Goals.

26. ANCOVA models include regressors that are:

Correct Answer: (d) Both qualitative and quantitative variables
Solution:

An ANCOVA is similar to an ANCOVA model, but it includes a continuous variable as well as categorical variables as independent variables, being a mixture model of ANOVA and regression models.

An example data is composed of 3 variables, treatment effect, treatment methods (Tx, 2 groups), and age in table 1.

An analysis of covariance procedure is used when the statistical model has both quantitative and qualitative predictors, and is based on the concept of general linear model.

27. Match List-I with List-II.

List-IList-II
(A) Narasimham Committee Report(I) Frauds and Malpracticers in Bank
(B) Ghosh Committee Report(II) Technology issues in Banking
(C) Padmanabhan Committee(III) RBI should withdraw 91 days T. Bill from market
(D) Saraf Committee(IV) Style of inspection and follow up the central bank
Correct Answer: (c) (A)-(III), (B)-(I), (C)-(IV), (D)-(II)
Solution:
List-IList-II
(A) Narasimham Committee ReportRBI should withdraw 91 days T. Bill from market
(B) Ghosh Committee ReportFrauds and malpractices in Bank.
(C) Padmanabhan CommitteeStyle of inspection and follow up by the central bank.
(D) Saraf CommitteeTechnology issues in Banking

28. As per Walras' law the sum of excess demand for money, bonds and current output must be equal to_______ .

Correct Answer: (b) Zero
Solution:

As per Walras law the sum of excess demand for money, bonds and current output must be equal to zero.

29. Arrange the following items in order of their construction starting from the first stage of the last stage:

(A) Budget
(B) Utility Analysis
(C) Demand curve analysis
(D) Indifference curve analysis
(E) Consumer's equilibrium
Choose the correct answer from the options given below:

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

(i) Utility analysis.
(ii) Indifference curve analysis.
(iii) Budget
(iv) Consumer's equilibrium
(v) Demand curve analysis.

30. Solve the following question?

Correct Answer: (a) Homogenous of degree 1
Solution:


It is homogenous of degree 1.