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

Total Questions: 100

31. Arrange the following taxes in the sequence in which they ware introduced starting from earliest to latest?

(A) Commodities Transaction Tax
(B) Securities Transaction Tax
(C) Banking Cash Transaction Tax
(D) Minimum Alterante Tах
(E) Angel Tax
Choose the correct answer from the options given below:

Correct Answer: (e) (*)
Solution:

(i) Securities Transaction Tax or (STT) was introduced in the year 2004 by the former finance minister P. Chindambaram. This tax was introduced to avoid tax evasion in case of capital gains.

(ii) The Banking cash transaction tax (BCTT) is a type of direct tax levied on withdrawal of cash more than a specified limit from bank. It was first levied in 2005 and then rolled back in 2009. The limit is decided by the government.

(iii) Angel tax, introduced in 2012 by then Finance Minister Pranab Mukherjee, was levied on funds raised by startups from angel investors when these funds exceeded the fair market value of the company, with a tax rate around 31% (30.9%)

(iv) Minimum alternate tax is applied when the income of person which is to be taxed is found to be less than 15.5 percent (Plus surcharge and cess as applicable) of the book profit under companies Act 2013, under income tax act provisions.

(v) Commodities Transaction Tax- This tax was introduced in 2013-14 budget by Government of India. It came into force with effect from Ist July 2013. Commodity Transaction Tax (CTT) is similar to Securities Transaction Tax, which applies for trading in the stock market.

32. Consider the following statements regarding the non Banking Financial Companies India (NBFCs):

(A) NBFCs are registered under the RBI Act 1948
(B) NBFCs cannot accept demand deposits like commercial banks
(C) NBFCs have to invest a specific percent of their assets in unencumbered approved securities
(D) NBFCs which engaged in merchant banking and portfolio management services are governed by SEВІ
(E) Every NBFC has to create a resever fund.
Choose the correct answer from the options given below:

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

Non Banking financial companies in India.
(i) NBFCs cannot accept demand deposits like commercial banks.
(ii) NBFCs have to invest a specific percent of their assets in unencumbered approved securities.
(iii) NBFCs which engaged in merchant banking and portllio management services are governed by SEBI.
(iv) Every NBFC has to create a reserve fund.

Notes- A NBFC is a company registered under the companies Act 1956. It engaged in the business of loans and advances acquisition of share/stocks/bonds/ debentures/ securities issued by the government or local authority or other marketable securities of like nature.

33. Arrange the following expressions in terms of increasing order of magnitude [given : a > o, b > o, x > o]


Choose the correct answer the options given below:

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

a > 0, b > 0, x > 0, given y = eᵃ
x > 1
y = 2ᵃ (Let x = 2)
if a = 3
= y = 2³ = 8, If a = 4 then y = 2⁴ = 16
∴ eᵃ
eᵃ + bx
eᵃ + b/x
eᵃ - b/x
eᵃ + 2bx
a-b/x a< a+ b/x < a + bx < a + 2bx

34. Match List-I with List-II.

List-I (Theory)List-II (Economist)
(A) Monopoly theory of distribution(I) Walker
(B) Theory of profit(II) Robinson
(C) Full cost pricing(III) Kalecki
(D) Modern theory of rent(IV) Hall and Hitch

Choose the correct answer from the options given below:

Correct Answer: (b) (A)-(III), (B)-(I), (C)-(IV), (D)-(II)
Solution:
List-I (Theory)List-II (Economist)
(A) Monopoly theory of distribution(III) Kalecki
(B) Theory of profit(I) Walker
(C) Full cost pricing(IV) Hall and Hitch
(D) Modern theory of rent(II) Robinson

35. Arrange the following norms of tax revenue develolution formula of the Fifteenth Finance Commission in order their weightages starting from highest.

(A) Income distance
(B) Area
(C) Demiographic performance
(D) Forest and Ecology
(E) Tax effort
Choose the correct answer from the options below:

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

Arrangements of norms of tax revenue devolution formula of the 15th finance commission in order of their weightages starting from the highest.
(i) Income distance
(ii) Area
(iii) Demographic performance
(iv) Forest & ecology
(v) Tax effort

36. Which of the following values indicates that each woman is being replaced by one daughter, leading to a stable population over time?

Correct Answer: (b) NRR = 1
Solution:

When NRR = 1, then female population will exactly replace itself into a new generation, and the population will remain constant.

37. Position of points O (0, 0) and P (2, -3) in the region of graph of inequation 2x - 3y < 5 will be:

Correct Answer: (a) O inside and P outside
Solution:

Point:- O (0,0)
p (2,-3)
⇒ 2x -3у ∠5
Purring both the values in equation, than the value satisfy the equation that will be inside the and those value will not satisfy the equation that will be outside the graph
For point O (0, 0) & Point P (2, -3)
⇒ Putting value of x, y in equation
2x-3y ∠5
then, 2×0 - 3×0 ∠5
0 ∠5 it satisfied
2x-3y ∠5
then, 2 × 2 - 3 × (-3)
4+9 = 13 5 Not satisfied

38. Match List-I with List-II.

List-IList-II
(A) Top beneficiary from Foreign exchange trading(I) John Von Neuman and Oscar Morgenstern
(B) Competitive equilibrium is Pareto efficient(II) General equilibrium analysis
(C) Walras(III) London
(D) Game Theory(IV) First theorem of welfare economics

Choose the correct answer from the options given below:

Correct Answer: (d) (A)-(III), (B)-(IV), (C)-(II), (D)-(I)
Solution:
List-IList-II
(a) Top beneficiary from Foreign exchange trading(III) London
(b) Competitive equilibrium is Pareto efficient(IV) First theorem of welfare economics
(c) Walras(II) General equilibrium analysis
(d) Game Theory(I) John Von Neuman and Oscar Morgenstern

39. Match List-I with List-II.

List-IList-II
(A) W.W. Leontief(I) Shadow Price
(B) Jan Tinbergen(II) Consumption Function
(C) J.M. Keynes(III) Price competition with homogenous products
(D) Joseph Bertrand(IV) Input-output model

Choose the correct answer from the options given below:

Correct Answer: (b) (A)-(IV), (B)-(I), (C)-(II), (D)-(III)
Solution:
List-IList-II
(A) W.W. Leontief(IV) Input-output model
(B) Jan Tinbergen(I) Shadow Price
(C) J.M. Keynes(II) Consumption Function
(D) Joseph Bertrand(III) Price competition with homogenous products

40. You have carried out a regression analysis but after thinking about the relationship between the two variables, you have decided that you must swap the explanatory and response variables.

After regression model to the data, you expect that:

Correct Answer: (d) The value of SSE (sum of squared errors) will change
Solution:

The value of SSE will change. In simple terms, the SSE is a measure of how well the regression model fits the data. A lower SSE indicates a better fitting model, while a higher SSE indicates a poor fitting model.