UGC NTA NET/JRF Exam, December-2024 Economics

Total Questions: 100

81. Free access to a resource often leads to its use beyond its carrying capacity. This kind of situation is called :

Correct Answer: (a) The Problem of the Tragedy of the Commons
Solution:

When everyone has the right to use a resource (such as a pasture, water source, fishing grounds, etc.) freely and without any restrictions, people exploit it excessively in their individual self-interest.

This leads to the resource being used beyond its capacity, and eventually, the resource is destroyed or depleted. This situation is known as the Tragedy of the Commons.

82. Match List-I with List-II :

List-IList-II
A. Expansionary Monetary Policy under Adaptive ExpectationsI. Policy is ineffective only with normal inflation.
B. Anticipated Expansionary Monetary Policy under Rational ExpectationsII. Policy is ineffective only with normal deflation.
C. Money Wage Cut during the Great DepressionIII. Policy is effective only in the short run, though not in the long run.
D. Presence of significantly large Inventory CostsIV. Policy is ineffective with any normal inflation/deflation.

Choose the correct answer from the options given below:

Correct Answer: (c) A-III, B-І, С-П, D-IV
Solution:
List-IList-II
A. Expansionary Monetary Policy under Adaptive ExpectationsPolicy is effective only in the short run, though not in the long run.
B. Anticipated Expansionary Monetary Policy under Rational ExpectationsPolicy is ineffective only with normal inflation.
C. Money Wage Cut during the Great DepressionPolicy is ineffective only with normal deflation.
D. Presence of significantly large Inventory CostsPolicy is ineffective with any normal inflation/deflation.

83. Walras' Law states that if N-1 markets are in equilibrium, then we can achieve the equilibrium price(s) in the following market(s):

Correct Answer: (a) Nᵗʰ Market
Solution:

Walras' Law is an important part of the general equilibrium theory. It states that if in an economy with N markets, N-1 markets are in equilibrium (where demand equals supply), then the Nᵗʰ market will automatically achieve equilibrium, provided all markets are interconnected.

According to this rule, the correct answer is:
(a) The Nᵗʰ Market
Because if N-1 markets are in equilibrium, the final Nth market will also be in equilibrium.

84. Arrange the following government schemes chronologically based on their year of launch

(A) Ayushman Bharat Yojana
(B) Atal Pension Yojana
(C) Jal Jeevan Mission
(D) PM Ujjwala Yojana
Choose the correct answer from the options given below:

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

The chronological order of the government schemes based on their year of launch is as follows:

S.NoScheme NameLaunch Date
(B)Atal Pension YojanaMay 9, 2015
(D)PM Ujjwala YojanaMay 1, 2016
(A)Ayushman Bharat YojanaSeptember 23, 2018
(C)Jal Jeevan MissionAugust 15, 2019

85. In the Keynesian mechanism, an increase in the money supply leads to an increase in the demand for goods and services by :

Correct Answer: (b) Increasing the demand for bonds and thereby equality promotion program. lowering the interest rate.
Solution:

In the Keynesian mechanism, an increase in the money supply leads to an increase in the demand for goods and services by increasing the demand for bonds and thereby lowering the interest rate.

When the money supply increases, people have more cash available (liquidity). They use this additional cash to buy bonds, which increases the demand for bonds. The increased demand for bonds raises their prices, and consequently, the interest rate (yield on bonds) falls.

The fall in the interest rate encourages investment and consumption, which, in turn, increases aggregate demand. This is a key tenet of the Keynesian framework.

86. Which of the following strategies does the Lewis-Ranis-Fei (LRF) framework consider essential for sustained progress?

(A) Land Reforms
(B) Green Revolution
(C) Planning
(D) Capital Accumulation
(E) International Migration
Choose the correct answer from the options given below:

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

The Lewis-Ranis-Fei model considers Land Reforms, Planning, and Capital Accumulation primarily essential for sustained progress

Land Reforms: Essential for increasing agricultural sector productivity and facilitating the transfer of surplus labor to the industrial sector.

Planning: Necessary for organized economic development.

Capital Accumulation: Mandatory for industrialization and investment.
Based on this, the correct answer should be (b), only A, C, and D.
But UGC-NET/JRF considered option (d)

87. Which of the following statement is not correct about India's national level programs?

Correct Answer: (c) Pradhan Mantri Gram Sadak Yojana is a food security promotion program.
Solution:

The statement that Pradhan Mantri Gram Sadak Yojana (PMGSY) is a food security promotion program is incorrect. The main objective of the PMGSY scheme is to connect rural areas with all-weather roads.

The scheme was launched on December 25, 2000, with the aim of connecting villages with a population of 500 or more (250 or more in hilly/tribal areas) with allweather roads and expanding the road network in rural areas.

88. Arrange the following theories in the correct chronological order (starting from the earliest):

(A) Cambridge version of the Quantity Theory of Money
(B) Baumol's Theory of Demand for Money
(C) Fisher's version of the Quantity Theory of Money
(D) Tobin's Theory of Demand for Money
Choose the correct answer from the options given below:

Correct Answer: (c) C, A, B, D
Solution:
IndexEconomic TheoryYear
(C)Fisher's version of the Quantity Theory of Money1911
(A)Cambridge version of the Quantity Theory of Money1920
(B)Baumol's Theory of Demand for Money1952
(D)Tobin's Theory of Demand for Money1956

89. The Endogenous Growth Theory was developed by :

(A) K. Arrow
(B) R. Barro
(C) P. Romer
(D) R. Solow
(E) G. Mankiw
Choose the correct answer from the options given below:

Correct Answer: (d) Only A, В, C
Solution:

The Endogenous Growth Theory was primarily developed by Paul Romer. Later, Kenneth Arrow provided the concept of "Learning by Doing" (The literal translation of the Hindi text's acronym is unclear, but the correct economic concept is "Learning by Doing"), which became the foundation of this theory.

Robert Barro worked on the effect of government policies and public expenditure. Therefore, the correct answer is option (d).

90. Arrange the following concepts/terms in chronological order of their proposal/coining (Oldest to Newest):

(A) Primitive Socialist Accumulation
(B) Development by Dispossession
(C) Accumulation by Dispossession
(D) Primitive Capitalist Accumulation
(E) Knife-Edge Instability
Choose the correct answer from the options given below:

Correct Answer: (c) D, A, Е. С, B
Solution:

D. Primitive Capitalist Accumulation: This concept refers to the accumulation of capital during the initial phases of capitalism, particularly during the transition from feudalism to capitalism. It involves the appropriation (expropriation) of land, labor, and other resources.

A. Primitive Socialist Accumulation: This concept refers to the accumulation of resources during the initial phases of industrialization and economic development in socialist states.

E. Knife-Edge Instability: This model illustrates the difficulty in maintaining a balanced state of growth.

C. Accumulation by Dispossession: This concept refers to a process of capital accumulation in which resources and assets are forcibly taken from people, leading to their dispossession.

B. Development by Dispossession: This model emphasizes the negative social and economic consequences of development.