UGC NET Economics (Paper-III) Solved Question Paper 2012

UGC–NET/JRF Examination, 2012
Economics (Paper–III) Solved Paper
(Held in December 2012)

( Previous Questions 1-30 )
31. Which of the following models of business cycle generates constrained cycles ?
(A) Samuelson's model (B) Hick's model
(C) Kaldor's model (D) All of the above
Ans : (B)

32. Which of the following is not an assumption of Harrod's model of growth ?
(A) The desired capital output ratio is constant
(B) Savings are a constant pro-portion of real income in the economy
(C) The labour force grows at some exogenously determined constant exponential rate
(D) Factor prices are flexible in the long run
Ans : (D)

33. Match the statements given in Group-A with their propounders in Group-B–
Group-A (Statements)
(a) Velocity of money is a stable function of its determinants.
(b) Velocity of money is an unstable function of its determinants.
(c) Velocity of money is a constant, and does not depend on income and interest rate.
Group-B (Propounders)
1. Keynesians 2. Monetarists
3. Classicals
Choose the correct codes–
Codes:
 (a)  (b)  (c)
(A)  2  3  1
(B)  1  2  3
(C)  2  1  3
(D)  3  2  1
Ans : (C)

34. A. W. Phillips wage-inflation unemployment trade off is based on–
(A) Static expectations hypothesis
(B) Adaptive expectations hypothesis
(C) Extrapolative expectations hypothesis
(D) Rational expectations hypothesis
Ans : (A)

35. Suppose the money supply and the price level are constant, and the demand for money is a function of income and interest rate. When the income level increases, there is–
(A) An increase in the quantity of money demanded and an increase in the rate of interest
(B) An increase in the quantity of money demanded and a decrease in the rate of interest
(C) A decrease in the quantity of money demanded and a decrease in the rate of interest
(D) A decrease in the quantity of money demanded and an increase in the rate of interest
Ans : (A)

36. Fiscal reform measures in India included–
1. Increasing Tax-GDP ratio
II. Expenditure Management
III. Managing revenue deficit and fiscal deficit
IV. Increasing liquidity in the economy
Find the correct combination from the given codes–
(A) I, II and III are correct
(B) I and IV are correct
(C) II, III and IV are correct
(D) III and IV are correct
Ans : (A)

37. During the Tenth Five Year Plan, some of the following things were experienced–
I. Services sector witnessed the highest growth rate.
II. Agriculture experienced the lowest growth rate
III. Rate of growth in the industrial sector was negative.
Which of the aforesaid statements are correct ?
(A) I, II and III are correct (B) I and II are correct
(C) I and III are correct (D) II and III are correct
Ans : (B)

38. Assertion (A) : Employment growth in the organized sector (both public and private combined) has increased during the period 1994–2008.
Reason (R) : There has been relatively faster employment growth in the private sector.
Codes :
(A) Both (A) and (R) are correct, and (R) is the correct explanation of (A)
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
(C) (A) is correct, but (R) is incorrect
(D) (A) is incorrect, but (R) is correct
Ans : (A)

39. According to the provisional figures for 2011 census, which of the following States has the lowest child sex ratio both in rural and urban areas ?
(A) Uttar Pradesh (B) Kerala
(C) Jammu and Kashmir (D) Haryana
Ans : (D)

40. Of the following, which sector experienced maximum growth rate at 2004-05 prices in India during 2009-10 ?
(A) Trade, hotels, transport and communication
(B) Manufacturing, construction, electricity, gas and water supply
(C) Financing, insurance, real estate and business services
(D) Agriculture, forestry, fishing, mining and quarrying
Ans : (A)

41. In which of the following years, gross domestic savings as a percentage of GDP was the highest ?
(A) 2009-10  (B) 2008-09
(C) 2007-08  (D) 2006-07
Ans : (C)

42. Growth process resulting into broad based benefits and providing equality of opportunity to all is referred to as–
(A) Faster growth (B) Inclusive growth
(C) Exclusive growth (D) Sustained growth
Ans : (B)

43. Which of the following plans witnessed the highest growth rate In India ?
(A) Ninth Plan (B) Eighth Plan
(C) Tenth Plan (D) Seventh Plan
Ans : (C)

44. For any pair of variables X and Y, two regression equations-one regression of Y on X and other regression of X on Y exist because–
I. Tangent of the angle made by two regression equations with each other determines the coefficient of correlation.
II. Regression model does not help in the identification of dependent and independent variables of the equation.
III. Regression and correlation coefficients represent the covariation of the two variabies.
IV. Regression equation represents jointly the value of X and Y.
Select the right code from the following as the answer to the question–
Codes:
(A) I and II are correct (B) I and III are correct
(C) I and IV are correct (D) III and IV are correct
Ans : (A)

45. In the context of simultaneous equations econometric models, consider the following statements–
I. Identification is a problem to be dealt with before estimation.
II. Order condition is necessary but not a sufficient condition of identification.
III. Two stage least squares method of estimation gives consistent estimators if the equation is under identified.
IV. Under indirect least squares method, least squares method is applied to the reduced form equations.
Use the following code to answer the question–
(A) I and II are correct but III and IV are incorrect
(B) I, II, III and IV are correct
(C) I, II and III are correct but IV is incorrect
(D) I, II and IV are correct but III is incorrect
Ans : (D)

46. Match the following from List-I and List-II –
List–I
(a) Durbin Watson 'd' Statistics
(b) R2
(c) Dickey–Fuller test
(d) Dummy Variable
List–II
1. Stationarity 2. Qualitative Effects
3. Serial Correlation 4. Goodness of fit of regression function
Codes :
 (a)  (b)  (c)  (d)
(A)  1  2  4  3
(B)  2  1  3  4
(C)  4  3  2  1
(D)  3  4  1  2
Ans : (D)

47. In Linear Programming problem involving two variables, multiple optimal solutions are obtained when one of the constraints is–
(A) The objective function should be parallel to a constraint that forms boundary of the feasible region
(B) The objective function should be perpendicular to a constraint that forms the boundary of the feasible region
(C) Neither (A) nor (B)
(D) Two constraints should be parallel to each other
Ans : (A)

48. Coefficient of determination of a regression model–
1. Explains the proportion of total variation in the values of the dependent variable.
2. It can be used to derive the estimate of the extent of variation in the value of Y that is explained by the random factors.
3. Direction of inter-relation between the dependent and independent variables.
4. It explains the influence of the intercept on the dependent variable.
Select the correct code from the list given below–
(A) 1, 2, 3 and 4 (B) 1 and 2
(C) 2, 4 and 3 (D) 4 and 1
Ans : (B)

49. The input coefficients/elements of which of the following matrices are interpreted as inputs required directly and indirectly per unit of final demand.
(A) A  (B) (I– A)
(C) (I – A)–l  (D) All of these
Ans : (C)

50. Total foodgrains production target for the year 2010-11 has been placed at–
(A) 250 million tonnes (B) 240 million tonnes
(C) 244 million tonnes (D) 234 million toness
Ans : (C)

51. Indicate the year in which National Food Security Mission (NFSM) was launched–
(A) 2001-02  (B) 2004-05
(C) 2010-11  (D) 2007-08
Ans : (D)

52. Identify Sources of agricultural credit in India from the codes given below–
1. Commercial Banks 2. Money Lender
3. Regional Rural Bank 4. Small Industries Development Bank of India
Codes:
(A) 1, 2 and 3  (B) 2, 3 and 4
(C) 3, 4 and l  (D) 1, 2, 3 and 4
Ans : (A)

53. Low productivity for agriculture in India is attributed to–
(A) Poor irrigation facilities (B) Heavy dependence on monsoon
(C) Absence of new technology (D) All the above
Ans : (D)

54. Quantum of food subsidy was highest in the year–
(A) 2009-10  (B) 2008-09
(C) 2004-05  (D) 2001-02
Ans : (A)

55. Productivity of Indian agriculture can be enhanced by–
1. Increased public investment.
2. Increased irrigation facilities.
3. Higher support price to the farmers.
4. Shifting workers from industry to agriculture.
Select the correct answer from the given codes–
Codes:
(A) 1, 2 and 4  (B) 1, 2 and 3
(C) 2, 3 and 4  (D) 3, 4 and 1
Ans : (B)

56. High powered money comprises–
(A) Currency held by the public + Cash reserves of banks
(B) Currency held by the public+ Demand and time deposits + Cash reserves of banks
(C) Currency held by the public + Cash reserves of banks + other deposits of RBI
(D) Currency held by the public + other deposits of RBI
Ans : (C)

57. Capital to risk-weighted asset ratio of all scheduled commercial banks in India under the Basel–I framework is stipulated at the minimum of–
(A) 7%  (B) 9%
(C) 12%  (D) 14%
Ans : (B)

58. Which of the following financial institutions are operating in the money market ?
1. Non-banking financial institutions 2. Acceptance Houses
3. Central Bank 4. Stock Exchange
Select the correct answer from the given codes–
Codes:
(A) 2 and 3  (B) 1 and 3
(C) 1, 2 and 4  (D) 1, 2 and 3
Ans : (D)

59. Assertion (A) : The capital base of regional rural banks (RRBs) is found to be weak.
Reason (R) : Deposit mobilization of RRBs has been inadequate.
From the above two statements, select the correct answer from the given codes–
Codes:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A)
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A)
(C) (A) is false, but (R) is true
(D) (A) is true, but (R) is false
Ans : (B)

60. Which of the following is broad money (M3) in India ?
(A) Currency with public + demand deposits in the banks
(B) Currency + demand deposits + other deposits with RBI
(C) Currency + demand deposits + time deposits
(D) Currency + demand deposits + time deposits +other deposits with RBI
Ans : (D)

61. Which of the following did not contribute significantly to inflationary pressure in Indian economy in 2010-11 ?
(A) Food prices (B) Prices of manufactured prices
(C) Fuel prices (D) Metal and mineral prices
Ans : (B)

62. In Joan Robinson's growth model, capital accumulation depends on–
(A) Saving–income ratio
(B) Profit–wage relation and labour productivity
(C) Profit–income ratio and capital productivity
(D) Saving–investment ratio
Ans : (B)

63. In Hicks' neutral technical progress, the technical progress is–
(A) Capital augmenting
(B) Labour augmenting
(C) Both Labour and Capital augmenting
(D) Change in the efficiency and productivity of labour
Ans : (C)

64. In dual gap model, the gap can be filled up by–
(A) Raising the level of saving (B) Export promotion
(C) Steady rate of growth (D) Foreign aid
Ans : (D)

65. The concept of 'learning by doing' was given by–
(A) J. R. Hicks (B) Kenneth Arrow
(C) Joan Robinson  (D) Nicholas Kaldor
Ans : (B)

66. Which of the following represents the concepts of human capital?
(A) Total human resources
(B) Total population
(C) Human resources gainfully employed in productive activities
(D) All of the above
Ans : (C)

67. Which of the following  disadvantageous to developing countries' international trade?
(A) Protection (B) Free trade
(C) Exports of primary and import of manufactured goods (D) None of the above
Ans : (C)

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