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

Total Questions: 100

81. Arrange the following rounds in chronological order (starting from oldest).

A. Millennium Round of Trade negotiations.
B. Doha Round
C. Uruguay Round
D. Kennedy Round
E. Tokyo Round
Choose the correct answer from the options given below:

Correct Answer: (d) D, E, C, A, B
Solution:
RefRoundYear(s)
DKennedy Round1964–1967
ETokyo Round1973–1979
CUruguay Round1986–1994
AMillennium Round1999
BDoha Round2001–Present

82. A company has examined its costs and revenue structure and has determined that C-total cost, R- total revenue and X- number of units produced are related as :

C = 100 +0.0015X² and R = 3X
Find the product level X that will maximize profit for this company.

Correct Answer: (d) 100
Solution:

83. Match List-I with List-II

List-I (Concept)List-II (Economist/Model)
A. Income induced adjustment process of balance of paymentsI. Paul Samuelson
B. Absorption approach of BoPsII. Keynes, J.M.
C. Impossible trinityIII. Sidney S. Alexander
D. Factor price equalization theoremIV. Mundell-Fleming

Choose the correct answer from the options given below:

Correct Answer: (b) A-II, B-III, C-IV, D-I
Solution:
List-I (Concept)List-II (Economist/Model)
A. Income induced adjustment process of balance of paymentsII. Keynes, J.M.
B. Absorption approach of BoPsIII. Sidney S. Alexander
C. Impossible trinityIV. Mundell-Fleming
D. Factor price equalization theoremI. Paul Samuelson

84. According to Lucas Critique.

Correct Answer: (d) The stability of coefficients of models are important for policy predictions.
Solution:

Lucas Critique Core Idea. Proposed by Robert Lucas (1976). It criticizes traditional key nesian macro econometric model.

Main Point : Policy changes affect people's expectations, so historically (coefficients) won't remain stable when policy changes. Implication: Models that ignore expectations will give wrong predictions after policy changes.

85. Arrange the following union government deficits as percentage of GDP for the year 2023-24 in ascending order as per union budget 2025-26.

A. Fiscal deficit
B. Effective Revenue deficit
C. Primary deficit
D. Current Account deficit
E. Revenue deficit
Choose the correct answer from the options given below:

Correct Answer: (c) D, B, C, E, A
Solution:
Deficit2023-24 (RA)2025-26 (BE)
1. Fiscal Deficit5.64.4
2. Revenue Deficit2.61.5
3. Primary Deficit20.8
4. Effective Revenue Deficit1.60.3
5. Current Account Deficit1.1

86. Which of the following is not correct according to the classical views regarding public debt?

Correct Answer: (b) Public debt financing supports supplementary budget policy as tool to stimulate aggregate demand.
Solution:

According to classical's view on public debt
The wrong statement is:
Public debt financing supports compensatory budget policy as a tool for stimulating aggregate demand.
Notes:
Keynesian Concept :- Compensatory budget policy is a Keynesian concept, not a classical one. Classical econists advocated for balanced budget and limited government intervention.

Contrasting Views - Classical economists typically viewed public debt with Skepticism, seeing it as potentially harmful to the economy by diverting resources from productive private investment.

87. According to classical economics, an increase in government deficit spending leads to.

A. A shift in the demand for loanable fund to the right
B. Decline in interest rate
C. Increase in investment
D. Increase in saving equal to decline in consumption
E. Decrease in investment and consumption that balances the increase in government spending.
Choose the correct answer from the options given below :

Correct Answer: (b) A, D & E Only
Solution:

A shift in the demand for loanable fund to the right - correct.
Deficit spending means the government borrows more → increase the demand for funds. In the loanable funds diagram, this shifts the demand curve for funds rightward.

(D) Increase in savings equal to decline in consumption - correct.
In the classical view, higher interest rates induce more savings.
This additional savings comes from households cutting promotions, so the increase ins savings equals the decline in consumption.

(E) Governance increase spending (G) → aggregate demand goes up. to fund this spending, the Govt. often borrows from the loanable funds market.

88. Bootstrapping technique is use to_______.

Correct Answer: (b) Obtain the sampling distribution of parameters of interest
Solution:

Bootstrapping technique is used to obtain the sampling distribution of parameters of interest.

Goal: Estimate the sampling distribution of the sample mean using bootstrapped.
Step 1: Start with observed data (the sample) suppose we have this small dataset of incomes (in $ 1000s):
Data = [45, 50, 55, 60, 65)
Sample sizes (n) = 5
Step-2 Bootstrap Reasmplilng
Resample with replacement from the original data-say,
5 values each time (same size as the original)
: Resample 1 (50,60,60,45,55)- Mean= 54
: Resample 2 (65,65,55,50,65)- Mean= 60
: Resample 3 (45,45,55,50,45)- Mean= 48
Do theis B= 1000 times to get 1000 bootstrap sample means.
Step 3: Build the sample Distribution
now, you have 1000 bootstrapped mean, for eg. Boots trap means = (54,60,48.......57)
This set forms a empirical approximation of the sampling distributioin of the sample mean
Step 4: Use the sampling Distribution
• Estimate standard error of the mean.
• Construct confidence intervals.
• Do hypothesis testing

89. The data about the sales and advertisement expenditure of a given below :

StatisticSales (In crore of Rs.)Advertisement expenditure (In crore of Rs.)
Mean406
Standard deviation101.5

Coefficient of correlation = r = 0.9
Estimate the likely sales for the proposed advertisement of Rs. 10 crore of rupees.

Correct Answer: (b) ₹64 Crore
Solution:


90. Match List-I with List-II

Correct Answer: (c) А-III, B-I, C-IV, D-II
Solution: