Test Preparation on UGC NET Economics Practice Set-1
Assertion (A): Y = C + I (where Y = NationalIncome, C = Consumption, I = Investment).Reason (R): C and I are important determinantsof national income.
Assertion (A): An investor will invest in a capitalasset.Reason (R): Marginal Efficiency of Capital(MEC) = market rate of interest.
Assertion (A): People?s desire for transactionsbalances increases with increase in income.Reason (R): People spend an increasingproportion of their income on consumption.
Match List-I (Monetary Standards) with List-II(Characteristics) and select the correct answerusing the codes given below the lists:
Consider the following statements:Unanticipated inflation is likely to benefit1. debtors2. Life Insurance policy holder3. persons having fixed deposits withcompanies4. persons having fixed deposits with banksOf these statements
Managed currency is said to be the
Consider the following statements:Money supply in India can be increased if1. RBI puts out more paper money forcirculation.2. the commercial banks expand their creditoperations.3. the Central Government gives more grantsto the states.4. the Government of India borrows from theRBI.Of these statements
Income velocity of money depends upon
Match List-I (Type of Banks/banking) with List-II (Function/Characteristics) and select thecorrect answer using the codes given belowthe lists:
Which one of the following methods can beused as an instrument of quantitative control ofcredit by the Central Bank?
Consider the following statements:The two main objectives of fiscal policy indeveloping countries are1. rapid economic growth2. price stability3. full employment4. equitable distributionOf these statements
Assertion (A): Reserve Bank of India raisesmoney supply through purchase of securitiesin the money market.Reason (R): Increase in money supply may resultin the expansion of investment and employment.
The whole burden of a tax will be borne by thesellers, if
Which one of the following pairs is correctlymatched?
Assertion (A): Public Finance is a normativescience.Reason (R): The objective of fiscal operationimplies proper allocation of resources,distribution of income, full employment andstability with growth.
What is the correct sequence of the following?1. Marrahkesh Declaration2. Smithsonian Agreement3. Keynes PlanSelect the correct answer using the codes givenbelow:Codes:
The Singer-Prebisch theory maintains that
The terms of trade for a country will improve asa result of currency devaluation (where SX =export elasticity of supply, SM = import elasticityof supply, DX = export elasticity of demand,DM = import elasticity of demand) if
Consider the following statements:The equivalence between the effects of a tariffand a quota which limits imports by the sameamount depends on the assumption that,1. there are competitive conditions prevailingabroad.2. there is perfect competition among quotaholders.3. there is free competition within the domesticimport-competing industry.Of these statements: