UGC NTA NET/JRF Exam, December-2024 Economics

Total Questions: 100

71. Match List-I with List-II:

List-IList-II
A. Von Neumann and Oskar MorgensternI. Tit for Tat Strategy
B. AxelrodII. Theory of Games and Economic Behavior
C. Stackelberg Leadership ModelIII. Nash Equilibrium
D. Single-Shot GameIV. Cheating (or Defection)

Choose the correct answer from the options given below:

Correct Answer: (d) A-II, B-I, C-III, D-IV
Solution:
List-IList-II
A. Von Neumann and Oskar MorgensternTit for Tat Strategy
B. AxelrodTheory of Games and Economic Behavior
C. Stackelberg Leadership ModelNash Equilibrium
D. Single-Shot GameCheating

72. The marginal revenue of a business firm is10 and it charges a price of 30 per unit. Assuming the business firm is a profit maximizer, what is the firm's own-price elasticity of demand at the profit-maximizing point?

Correct Answer: (b) -1.5
Solution:


73. Solve the following question?


(A) The degree of homogeneity is 1
(B) α is the output elasticity with respect to capital.
(C) It exhibits constant returns to scale.
(D) Marginal product of a factor = Average product of the factor.
Choose the correct answer from the options given below:

Correct Answer: (d) Only В
Solution:

The production function is   

(A) The degree of homogeneity is 1: This statement is incorrect. The degree of homogeneity is α+ß. While it may be equal to 1 (if α+ẞ=1), it is not necessarily true for any given Cobb-Douglas function unless specified.

(B) α is the output elasticity with respect to capital: This statement is correct. For a Cobb-Douglas function, the exponent of a factor (here, a for capital K) directly gives the output elasticity of that factor.

(C) It exhibits constant returns to scale: This statement is incorrect. The function exhibits constant returns to scale only if α+ẞ=1. The question does not provide this information.

(D) Marginal product of a factor = Average product of the factor: This statement is incorrect as a general principle.

74. Which of the following trade models exhibits the characteristics of economies of scale and monopolistic competition?

Correct Answer: (c) Krugman Trade Model
Solution:

The Krugman Trade Model (New Trade Theory) is a model that specifically explains trade based on economies of scale and monopolistic competition.

In this model, several large firms compete in the same market, and due to economies of scale, these firms can lower their production costs.

  • Economies of Scale
  • Monopolistic Competition
  • Some big firms
  • Firms lowering production costs

75. Solve the following question?

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

Given,(B) ABT is defined
The number of columns of the first matrix = The number of rows of the second matrix.
This statement is correct
(C) AB is not defined
This statement is incorrect.

The correct option is (b): A, B, C, and E.

76. The advantages of indirect taxes are :

(A) Their evasion (avoidance) is difficult.
(B) They are elastic in nature.
(C) Their payment is easy.
(D) They are based on the taxpayer's ability to pay.
Choose the correct answer from the options given below:

Correct Answer: (c) Only A, B, С
Solution:

The following are the advantages of indirect taxes:
(A) Their evasion (avoidance) is difficult.
(B) They are elastic in nature.
(C) Their payment is easy.

77. Match List-I with List-II:

List-IList-II

A. Crude Birth Rate (CBR)

 I. (B/P) × 1000

B. Age-Specific Fertility Rate (ASFR)

II. (B/Pf) × 1000

C. Gross Reproduction Rate (GRR)

III. (Bᵢ/Pᵢf) × 1000

D. General Fertility Rate (GFR)

IV. ∑(Bᵢ/Pᵢf) × 1000

Choose the correct answer from the options given below:

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

A. Crude Birth Rate (CBR)

(B/P) × 1000

B. Age-Specific Fertility Rate (ASFR)

(Bᵢ/Pᵢf) × 1000

C. Gross Reproduction Rate (GRR)

∑(Bᵢ/Pᵢf) × 1000

D. General Fertility Rate (GFR)

(B/Pf) × 1000

78. Which of the following is not a characteristic appropriate for a monopolistic competitor?

Correct Answer: (b) Perfect mobility of factors of production.
Solution:

Perfect mobility of factors of production is not the main characteristic of monopolistic competition. The characteristics of Monopolistic Competition are as follows:

(i) There is a very large number of buyers and sellers in the group.
(ii) The products of different sellers in the group are mutually differentiated.
(iii) There is freedom of entry and exit of firms in the group.
(iv) The prices of the factors of production and technology are given.
(v) The main objective of the firm in both the short run and the long run is to maximize its profit.
(vi) Chamberlin takes the 'courageous assumption' that the demand and cost curves for the products of all firms in the entire group are uniform.

79. Arrange the following based on their date of establishment

(A) IDBI - Industrial Development Bank of India
(B) IFCI - Industrial Finance Corporation of India
(C) ICICI - Industrial Credit and Investment Corporation of India
(D) IRBI - Industrial Reconstruction Bank of India
Choose the correct answer from the options given below:

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

The correct order based on the year of establishment is as follows :

InstitutionYear
BIFCI - Industrial Finance Corporation of India1 July 1948
CICICI - Industrial Credit and Investment Corporation of India5 January 1948
AIDBI - Industrial Development Bank of India1 July 1964
DIRBI - Industrial Reconstruction Bank of India1 July 1971

80. The Harris-Todaro framework discusses :

Correct Answer: (b) Pulled migration
Solution:

The Harris-Todaro framework discusses pulled migration. The Harris-Todaro framework explains rural-urban migration based on the expected income differential.

It suggests that people migrate from rural to urban areas not just because of actual income differences but due to the expected higher wages in urban areas, even if urban unemployment exists.

This concept aligns with pulled migration, where individuals are attracted to urban areas by the structure of better economic opportunities.