UGC NTA NET/JRF Exam, June-2025 Economics (Shift-II)

Total Questions: 100

31. If U = 6๐“ยฒ + yยฒ, and 4๐“ โ€“ y = 1. What is the value of U?

Correct Answer: (b) 3/11
Solution:

U = 6๐“ยฒ+ yยฒ & 4๐“ - y = 1
4๐“ - y = 1
4๐“ - 1 = y
U = 6๐“ยฒ + (4๐“ -1)ยฒ
U = 6๐“ยฒ + 16๐“ยฒ+1-2ร—4ร—๐“
U = 6๐“ยฒ + 16๐“ยฒ +1-8๐“
U = 22๐“ยฒ- 8๐“ +1
dU/d๐“ = 44๐“ - 8 = 0
= 44๐“ = 8
๐“ = 8/44
U = 22๐“ยฒ- 8x +1
= 22 ร— (2/11)ยฒ - 8 ร— (2/11) + 1
= (8/11) - (16/11) + 1 = 3/11
U = 3/11

32. The management of a manufacturing firm whishes to determine the average time required to complete a certain manual operation. There should be 0.95 confidence that error in the estimate wil not exceed 2 minutes. What sample size is estimated by a time and motion study expert as 16 minutes?

Correct Answer: (d) 246
Solution:

Sample size formula :

33. Which of the following is not true?

Correct Answer: (b) There is a substitution effect associated with a lump-sum tax, but no income effect.
Solution:

(1) The imposition of a tax on a commodity changes its price. If the price changes, the income effect and the substitution effect will occur.

(2) A lump-sum tax does not affect marginal cost in the short run, so the price will not change. Therefore, the substitution effect and the income effect do not occur.
(3) The greater the substitution effect, the greater the burden loss.

(4) The burden loss is associated with the reduction in prices received by producers as a result of the imposition of the tax.

34. Which of the following is likely to lead a rise in the output cost of disinflation?

Correct Answer: (b) Sluggish response of wages and prices to monetary contraction.
Solution:

A rise in the output cost of disinflation generally occurs when monetary policy is tightened too quickly or aggressively to slow inflation, leading to a sharp decrease in demand and increased unemployment which in turn can force businesses to raise prices to cover their fixed costs despite falling overall inflation.

35. Arrange the following publications in chronological order starting from the oldest to the latest.

A. "Theory of Economic Growth" by Arthur Lewis
ะ’. "ะ Contribution to the Theory of Economic Growth" by Robert Solow
C. "The Stages of Economic Growth: A Non Communist Manifesto" by Walt Rostow.
D. "Asian Drama: An Inquiry into the Poverty of Nations" by Gunnar Myrdal.
E. "Strategy of Economic Development" by Albert Hirschman.
Choose the correct answer from the options given below:

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

A. 'Theory of Economic Growth" by Arthur Lewis - 1955
B. "A Contribution to the Theory of Economic Growth" by Robert Solow - 1956 E."Strategy of Economic Development" by Albert Hirschman - 1958
C. "The Stages of Economic Growth: A Non Communist Manifesto" by Walt Rostow - 1960
D. "Asian Drama: An Inquiry into the Poverty of Nations" by Gunnar Myrdal - 1968

36. If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns:

Correct Answer: (d) The value of its marginal product.
Solution:

Firms hire each factor of production (like labor, capital, land) up to the point where the cost of hiring that factor equals the value of its marginal product (VMP).
VMP = Marginal product ร— Price of output.
This ensures allocative efficiency and profit maximization.
This is also known as marginal productivity theory of distribution.

37. Match List-I with List-II

List-I (Concept)List-II (Associated Figure/Report)
A. Inverted "U" hypothesisI. Herman Daly
B. Sustainable developmentII. Garrett Hardin
C. Ecological EconomicsIII. Simon Kuznets
D. Tragedy of the commonsIV. Gro Harlem Brundtland

Choose the correct answer from the options given below :

Correct Answer: (c) ะ-III, B-IV, C-I, D-II
Solution:
List-I (Concept)List-II (Associated Figure/Report)
A. Inverted "U" hypothesisIII. Simon Kuznets
B. Sustainable developmentIV. Gro Harlem Brundtland
C. Ecological EconomicsI. Herman Daly
D. Tragedy of the commonsII. Garrett Hardin

38. Arrange the following rates in ascending order, as decided in 54แต—สฐ meeting of monetary policy committee of RBะ†.

A. Marginal Standing Facility Rate
B. Standing Deposit Facility Rate
C. CRR
D. Reverse Repo Rate
E. Repo Rate
Choose the correct answer from the options given below:

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

Current Rates
Policy Rate
1. Policy Repo Rate โ†’5.50%
2. Standing Deposit โ†’ 5.25% Facility Rate
3. Marginal Standing โ†’ 5.75% Facility Rate
4. Bank Rate โ†’ 5.75%
5. Fixed Reverse Repo Rate โ†’ 3.35%
Reverse Ratios
CRRโ†’4.00%
SLRโ†’ 18.00%

39. In the context of neoclassical growth model, the effects of an increase in population growth rate is/are.

A. Reduction in steady-state level of capital per head.
B. Increase in per capita output.
C. Increase in steady state rate of growth of aggregate output.
D. Decrease in capital-output ratio.
E. An inward shift in production possibility curve.
Choose the correct answer from the options given below:

Correct Answer: (c) A & C Only
Solution:

In the neoclassical growth model, an increase the population growth rate (n) leads to a lower steadystate capital per head and a higher steady-state growth rate of aggregate output.

40. The Stolper-Samuelson theorem postulates that :

Correct Answer: (a) An increase in the relative price of a commodity raises the earnings of the factor used intensively in the production of the commodity.
Solution:

Stopler-Samuelson Theory (1941). It depicts the effect of change in commodity prices on real factor rewards. An increase in the relative price of a commodity rises the return or earnings of the factor used intensively in the production of commodity.

As a result of international trade, abundant factors gains scarce factor lose. After imposing tariff, abundant factor loses & scarce factor gain.

For eg., nation is capital intensive & imposition of an import tariff an commodity X (labour intensive commodity) increases Px/Py in the nation & increases the earnings of L (nation's scarce factor).