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

Total Questions: 100

41. Which of the following is/are possible reason (s) for surplus in balance of payment?

(A) Decline in imports
(B) Decline in interest rate
(C) Increase in export
(D) Increase in income tax
(E) High outward foreign direct investment
Choose the most appropriate answer form the option given below:

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

BOP surplus occurs when a country's total exports are higher than its imports. This helps to generate capital to fund its domestic productions.
With a surplus in its BOP, a country can also lend funds outside its borders. A surplus in BOP can help to boost the short term economic growth of a country.

42. Indentify the correct statements from below:

(A) When price consumption curve (PCC) for a good is parallel to horizontal axis, the demand function for the good is unitary elastic.
(B) Given log D = α+ ẞ log y + ϒ log P then elasticity of log D with respect to log P is ϒ (C) The condition for stability in simple Keynesian system is O < MPC < 1
(D) The fixed cost curve is a rectangular huyperbola
Coose the correct answer from the options given below:

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

(i) When price consumption curve (PCC) for a good is parallel to horizontal axis, the demand function for the good is unitary elastic.
(ii) The condition for stability in simple keynesian system is 0 < MPC < 1.

43. Suppose Q=20/P and P≤10, MC = 1 then profit maiming price and quantity will be:

Correct Answer: (c) P= 10, Q=2
Solution:



Maximum profit will come when the price will be maximum.
Price maximum = 10
P = 10 then Q = 2
So. putting this value in equation PQ- Q = π  we will get
10 × 2-2 = π
20 - 2 = π
π = 18

44. As per National Health Survey-5 what was the number of females per 1000 males during survey period 2019-21?

Correct Answer: (d) 1020
Solution:

As per National Health Survey - 5, conducted between 2019-2021 the number of females per 1000 males in India was 1020.

■Key points about NFHS 5 data on sex ratio:
■Overall sex ratio: 1020 female per 1000 males.
■Rural sex ratio : Higher than national average.
■Urban sex ratio: Lower than the national average.

45. Arrange the following theories in correct chronological order, starting from earliest to latest:

(A) Patinkin's Real Balance Effect
(B) Reformulated quantity theory of money
(C) Baumol's theory of money
(D) Cash transaction approach
(E) Cash balance approach
Choose the correct answer from the options given below:

Correct Answer: (e) (*)
Solution:

(i) Cash Transaction approach- The cash transaction approach of the quantity theory of money was provided by the American Economist Irving Fisher in his book- The Purchasing Power of Money (1911)
(ii) Cash Balance approach - 1917
(iii) Reformulated quantity theory of money- 1956
(iv) Baumol's theory of money - 1952 & 1956
(v) Patinkin's Real Balance - 1948

46. Among the following which is/are the instruments of capital market?

(A) Venture Capital
(B) Treasury Bills
(C) Certificate of Deposit issued by commercial banks
(D) Global Depository Receipts
(E) Inter Corporate Deposits
Choose the correct answer from the options given below:

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

Instruments of capital market-
(i) Venture Capital
(ii) Global Depository Receipts Capital market instruments are various financial tools available in the capital markets for investment and fundraising.

They include equities like stocks, debt securities like bonds and debentures, derivatives, such as options and futures, Exchange Traded Funds (ETFs), and foreign exchange instruments.

47. Consider the following statements regarding public good:

(A) Public good is nonexclusive
(B) Public goods is national defense
(C) Public good is rival
(D) Public goods provides benefits to people at non-zero marginal cost
(E) Public good creates inefficiency in consumption
Choose the correct answer from the options given below:

Correct Answer: (a) (A) and (B) only
Solution:

A public good is a commodity or service that is considered both non-excludable (meaning no one can be prevented from using it) and non-rivalrous (meaning one person's use of the good does not diminish its availability to others).

Typically provided by a government and funded through taxes; examples include national defense streetlight and clean air.

48. Consider the following targets of National Health Policy 2017. Choose the correct objective to be achieved by 2025:

(A) Infant Mortality Rate: 30
(B) Under Five Mortality Rate: 20
(C) Maternal mortality rate : 100
(D) Total Fertility Rate :
(E) Life Expectancy at Birth: 70 years
Choose the the correct answer from the options given below :

Correct Answer: (d) (C), (D), (E) only
Solution:

Targets of National Health Policy 2017: achieved by 2025:
(i) Maternal Mortality rate: 100
(ii) Total Fertility rate: 21
(iii) Life expectancy at Birth: 70 years
Important Points-
Here are some targets of NHP 2017 that were set to be achieved by 2025.
(i) Life expectancy - 67.5 years to 70 years.
(ii) Under - five Mortality - Reduced under - five mortality to 23
(iii) Increase in Public health facility utilization by 50%
(iv) Sustain antenatal care coverage above 90%
(v) Sustain skilled attendance at birth above 90%
(vi) Ensure that more than 90% of newborns are fully immunized by one year of age.
(vii) Meet the need for family planning above 90% at the national and sub national level
(viii) Ensure that 80% of known hypertensive and diabetic individuals maintain "Controlled disease status".
(xi) Increase Government health expenditure from 1.15% to 2.5% of the GDP.

49. The _______ effect implies that nominal interest rates tend ot be high when inflation is high and low ehen inflation is low?

Correct Answer: (c) Fisher effect
Solution:

The fisher effect is an econominal theory that describes the relationship between inflation and interest rates.

The fisher effect states that nominal interest rates change to follow inflation rate. This means that when inflation increases, interest rates also tend to rise, and when inflation decreases, interest rates tend to fall.

50. As per the Gravity Modfel of world trade, which of the following components of the two countries determine the volume of trade between them:

(A) Gross Domestic Product
(B) Distance
(C) Foreign exchange
(D) Foreign trade intensity
(E) Foreign investments
Choose the correct answer from the options given below:

Correct Answer: (a) (A) and (B) only
Solution:

(i) Gross Domestic Product
(ii) Distance