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

Total Questions: 100

61. Match List-I with List-II

List-I (Items of receipts)List-II (Share to total receipt in % as per union budget 2025-26)
A. Income taxI. 4%
B. CustomII. 5%
C. Corporation taxIII. 22%
D. Union exciseIV. 17%

Choose the correct answer from the options given below:

Correct Answer: (c) A-III, B-I, C-IV, D-II
Solution:
List-I (Items of receipts)List-II (Share to total receipt in % as per union budget 2025-26)
A. Income taxIII. 22%
B. CustomI. 4%
C. Corporation taxIV. 17%
D. Union exciseII. 5%

62. Match List-I with List-II

List-I (Monetary policy regime)List-II (Periods)
A. Fiscal dominanceI. 2016 onwards
B. Multiple indicator approachII. 1951–1974
C. Monetary targeting with feedbacksIII. 1998–2016
D. Flexible inflation targetingIV. 1985–1998

Choose the correct answer from the options given below:

Correct Answer: (b) A-II, B-III, C-IV, D-I
Solution:
List-I (Monetary policy regime)List-II (Periods)
A. Fiscal dominanceII. 1951–1974
B. Multiple indicator approachIII. 1998–2016
C. Monetary targeting with feedbacksIV. 1985–1998
D. Flexible inflation targetingI. 2016 onwards

63. Match List-I with List-II

List-I (Theory/Model)List-II (Author/Hypothesis)
A. Specific factors modelI. Prebish-Singer hypothesis
B. Immiserizing growthII. Thomas Mun
C. Mercantilism theory of International tradeIII. Jagdish Bhagwati
D. Secular deterioration of terms of tradeIV. Paul Samuelson and Ronald Jones

Choose the correct answer from the options given below:

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

The correct match is as follows -

List-I (Theory/Model)List-II (Author/Hypothesis)
A. Specific factors modelPaul Samuelson and Ronald Jones 1971
B. Immiserizing growthJagdish Bhagwati 1958
C. Mercantilism theory of International tradeThomas Mun 1621
D. Secular deterioration of terms of tradePrebisch-Singer hypothesis 1949- 1950

64. Which of the following are true in case of externality?

A. In case of externality, all costs and benefits associated with the goods are not internalized by households and firms involved in buying and productions.

B. Presence of externality results either under production or over production of the goods.

C. Market based decision making yields an efficient outcome in the presence of externality.

D. In case of negative externality, the marginal social cost is higher than marginal cost.

E. Well defined property right can solve the problem of externality.
Choose the correct answer from the option given below :

Correct Answer: (c) Only A, B, D and E
Solution:

A. In case of externality, all costs and benefits associated with the goods are not internalized by households and firms involved in buying and productions.
B. Presence of externality results either under production or over production of the goods.
D. In case of negative externality, the marginal social cost is higher than marginal cost.
E. Well defined property right can solve the problem of externality.

65. In the product cycle model of international trade, in which stage the imitating country underselling the innovating country in third markets?

Correct Answer: (c) Stage-IV
Solution:The product cycle model by Raymond Vernon which explains how a product evolves through stages and how international trade patterns shift:

In stage I (time OA), the product is produced and consumed only in the innovating country.

In stage II (AB), production is perfected in the innovating country and increases rapidly to accommodate rising demand at home and abroad.

In state III (BC), the product becomes standardized and the imitating country starts producing the product for domestic consumption.

In stage IV (CD), the imitating country starts underselling the innovating country in third markets, and.

In stage V (past point D) in the latter's market as well for domestic consumption.

66. Which of the following indicate that country "B" is capital abundant country?


Choose the correct answer from the options given below :

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

Following that indicate that country "B" is capital abundant country:

67. Solve the following equation?


Correct Answer: (c)
Solution:

68. Solve the following question?

Correct Answer: (d) x* = 16, y* = 11
Solution:

69. If the demand law is : P= √9-X and the demand is fixed at x₀ = 5. Find the consumer's surplus.

Correct Answer: (a) 8/3
Solution:

Consumer Surplus,

70. Which of the following statements best define property rights?

Correct Answer: (c) Property rights are the legally enforced rights to determine how a resource is used, owned and transferred.
Solution:

Property rights refer to the legally recognized and enforceable rights of individual or entities.
1. The right to use the good.
2. The right to earn income from the good.
3. The right to transfer the good to others, alter it, abandon it, or destroy it (the right to ownership cessation).