Test Preparation on UGC NET Economics Practice Set-12
1.
Assertion (A): Marshall-Lerner conditionshould be fulfilled if devaluation is to besuccessful.Reason (R): Devaluation makes exports costlyand imports cheaper.
2.
Assertion (A): Devaluation can correct theimbalance in the balance of payment.Reason (R): Devaluation raises the price ofimported goods and reduces the foreign priceof exports of the devaluing country.
3.
Assertion (A): Free international tradenecessarily lowers the real wage of the scarcefactor of production in terms of any good.Reason (R): If the real wage declines in terms ofevery good, real income must suffer regardlessof the tastes and expenditure patterns of thelabourers as consumers.
4.
Which one of the following pairs of countries ispart of G-7?
5.
In a word, with only two goods, X and Y, andthe full employment of factors, a rise in the priceof a commodity, X, leads to
6.
Which of the following are the functions ofWTO?1. To provide a forum for trade negotiations.2. To administer the WTO agreement.3. To settle the disputes among members.4. To coordinate with IMF and IBRD in theformulation of global economic policies.Select the correct answer using the codes givenbelow:Codes:
7.
The infant industry argument is often advocatedin the context of
8.
Under which of the following conditions willthere be the possibility of trade between twocountries whose factor endowments areidentical?
9.
A tariff will not have any effect on revenue if theduty imposed is
10.
Consider the following statements:If the offer-curve is a straight line,1. high tariff rates can improve terms of trade.2. low tariff rates can improve terms of trade.3. absence of tariff can improve terms of trade.Of these statements:
11.
Dumping aims at flooding a foreign country with
12.
Which one of the following is the majorcharacteristic of foreign direct investment (FDI)?
13.
In July 1997, which one of the following groupsof countries devalued their currencies withrespect to the dollar?
14.
Over-valuation of currency is not desirable,when
15.
Which one of the following represents capitalaccount convertibility of a currency?
16.
Which of the following was/were assumed inthe neo-classical growth model as propoundedby Solow?1. A variable savings rate.2. A constant population growth rate. 3. A variable capital-output ratio.Select the correct answer using the codes givenbelow:Codes:
17.
Theory of growth developed by Schumpetergives importance to the
18.
Despite being a high saving economy, adeveloping country may still not grow fastprimarily due to
19.
A locus of constant utility is called the
20.
Total product is exhausted when factors are paidaccording to their respective marginal productsprovided that the production function ishomogeneous of degree (n), where
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