The complete UGC NET September 2020 question paper for Economics, covering Paper 1 (General Aptitude) and Paper 2 (Economics). Every question below is shown with its options and the correct answer, and a detailed explanation you can unlock by signing in. All 150 questions are free to practise.
| Exam | UGC NET September 2020 |
|---|---|
| Papers | Paper 1 (General Aptitude) and Paper 2 (Economics) |
| Exam date(s) | September 30, 2020 |
| Shift(s) | Shift 2 |
| Paper 1 questions | 50 questions · 60 minutes · 100 marks |
| Paper 2 questions | 100 questions · 120 minutes · 200 marks |
| Total | 150 questions |
| Marking scheme | +2 per correct answer · No negative marking |
UGC NET September 2020 · Economics sitting
50 questions with the answer key and explanations.
What is the difference between the number of vacancies available in the city of Bangalore in the year 2019 and 2009?
| City | 2009 | 2019 |
|---|---|---|
| Bangalore | 15 | 22 |
| Hyderabad | 10 | 8 |
| Pune | 12 | 6 |
| Mumbai | 10 | 18 |
| Chennai | 8 | 10 |
| NCR | 21 | 20 |
| Other cities | 24 | 16 |
Answer: (A) 108200
Explanation
What is the average number of vacancies available in the city of Hyderabad in the year 2009 and 2019?
| City | 2009 | 2019 |
|---|---|---|
| Bangalore | 15 | 22 |
| Hyderabad | 10 | 8 |
| Pune | 12 | 6 |
| Mumbai | 10 | 18 |
| Chennai | 8 | 10 |
| NCR | 21 | 20 |
| Other cities | 24 | 16 |
Answer: (D) 61400
Explanation
What is the total number of vacancies available in the city of Chennai in 2009 and in that of Mumbai in the year 2019?
| City | 2009 | 2019 |
|---|---|---|
| Bangalore | 15 | 22 |
| Hyderabad | 10 | 8 |
| Pune | 12 | 6 |
| Mumbai | 10 | 18 |
| Chennai | 8 | 10 |
| NCR | 21 | 20 |
| Other cities | 24 | 16 |
Answer: (C) 1.98 lakhs
Explanation
If the number of vacancies in the city of Pune is 48000 in the year 2019 and the percentage distribution is the same as given in the table, then what is the number of vacancies available in NCR in 2019?
| City | 2009 | 2019 |
|---|---|---|
| Bangalore | 15 | 22 |
| Hyderabad | 10 | 8 |
| Pune | 12 | 6 |
| Mumbai | 10 | 18 |
| Chennai | 8 | 10 |
| NCR | 21 | 20 |
| Other cities | 24 | 16 |
Answer: (D) 1.6 lakhs
Explanation
What is the approximate percentage rise seen in vacancies available in the city of Hyderabad from 2009 to 2019?
| City | 2009 | 2019 |
|---|---|---|
| Bangalore | 15 | 22 |
| Hyderabad | 10 | 8 |
| Pune | 12 | 6 |
| Mumbai | 10 | 18 |
| Chennai | 8 | 10 |
| NCR | 21 | 20 |
| Other cities | 24 | 16 |
Answer: (D) 27.41 %
Explanation
In which level of teaching, the activities of structuring, guiding and closely supervising the students’ behavior predominate?
Answer: (D) Memory level
Explanation
Which of the following constitutes the ‘ability’ (can do) component for describing the competence of a teacher?
A. Confidence in performing teaching task
B. Knowledge of the subject being taught
C. Skill in analysing the learning tasks
D. Experience in handling learning task related situations
E. Commitment to organizing teaching-learning tasks
Choose the correct answer from the options given below:
Answer: (A) B, C and D only
Explanation
When reflective level teaching and learning are successful, students emerge with
A. A strong logical basis to retain the information
B. An enlarged store of tested insights of a generalized character
C. A firm relational structure in the items of information
D. An enhanced ability to develop and solve problems on their own
E. Seeing relationship and tool use of a fact
Choose the correct answer from the options given below:
Answer: (B) B and D only
Explanation
A model of teaching is a description of
Answer: (B) Learning environment including teaching behaviour
Explanation
Given below are two statements
Statement I: Maximum performance tests are designed to assess the upper limits of the examinee’s knowledge and abilities
Statement II: Typical response tests are designed to measure the behaviour and characteristics of examinees
In light of the above statements, choose the most appropriate answer from the options given below
Answer: (A) Both Statement I and Statement II are correct
Explanation
“A university teacher plans to study the performance of students in implementing specific projects in terms of their creativity level.”
Which method of research will be appropriate to use in this context?
Answer: (D) Ex post facto method
Explanation
Which of the following features of research are associated with qualitative-inquiring?
A. Actual settings as the direct source of data
B. Data collection under controlled conditions
C. Concern with process rather than simply with outcomes
D. Establishing relationships and explaining the causes of changes
E. Concerned with what are called participant perspectives
Choose the correct answer from the options given below:
Answer: (B) A, C and E only
Explanation
Identify the characteristics of a good research hypothesis from the following
A. Amenable to empirical verification
B. Conceptual clarity in defining the variables
C. Plausibility of relationships postulated
D. Accessibility in terms of researcher’s resources
E. Extent of its non-refutability
Choose the correct answer from the options given below:
Answer: (D) A, B and C only
Explanation
A research scholar while writing his/her thesis uses ICT at various stages of research conducted. He/she justifies the conceptual errors in interpreting results attributing the same to the specific ICT devices. This will be labelled as
Answer: (A) Technical incompetence
Explanation
Given below are two statements
Statement I: Action research is cyclic in so far as it involves ‘Plan-Act-Observe-Reflect’ cycle
Statement II: The purpose of Action research is to develop a theory to explain causal relationship among variables
In light of the above statements, choose the most appropriate answer from the options given below
Answer: (C) Statement I is correct but Statement II is incorrect
Explanation
Shifting technologies and communication institutions contribute to
Answer: (A) System integration
Explanation
The positive impact of communication depends upon
A. Acceptance of barriers
B. Planning
C. Sudden expression
D. Media selection
E. Use of language
Choose the correct answer from the options given below:
Answer: (B) B, D and E only
Explanation
Given below are two statements, one is labelled as Assertion A and the other is labelled as Reason R
Assertion (A): Universality of communication makes education vital and vibrant
Reason (R): Semiotic narration does not lend itself credence to make it an efficient mode of teaching
In light of the above statements, choose the most appropriate answer from the options given below
Answer: (C) A is correct but R is not correct
Explanation
The chronological sequence in the development of communication system is
A. Emergence of language
B. Cave paintings
C. Interpersonal communication (verbal)
D. Appearance of printing technology
E. Telecommunication system
Choose the correct answer from the options given below
Answer: (D) B, A, C, D, E
Explanation
Match List-I with List-II.
| List I: Example | List II: Type of communication |
|---|---|
| A. Addressing the nation over national TV network | I. Horizontal communication |
| B. Conducting a workshop for a select number of teachers | II. Intra-personal communication |
| C. Internal conversation with fellow workers | III. Mass communication |
| D. Recollection of past events | IV. Group communication |
Answer: (C) A - III, B - IV, C - I, D - II
Explanation
Given below are two statements
Statement I: If the ratio of the speeds of A and B is a:b, then the ratio of the times taken by them to cover the same distance is b:a
Statement II: Suppose two men are moving in the same direction at u m/s and v m/s respectively, where u > v, then their relative speed is (u+v) m/s
In light of the above statements, choose the most appropriate answer from the options given below
Answer: (C) Statement I is correct but Statement II is false
Explanation
Consider the following three expressions
A. 35 + 0.07
B. 2.5 + 0.0005
C. 136.09 + 43.9
What is the correct descending order for the simplified values of A, B and C?
Choose the correct answer from the options given below
Answer: (A) B > A > C
Explanation
Which of the following numbers are non-prime?
A. 11
B. 13
C. 19
D. 21
E. 15
Choose the correct answer from the options given below:
Answer: (D) D and E only
Explanation
Find the odd number in the following series
644, 328, 164, 84, 44, 24, 14
Answer: (D) 328
Explanation
Kavita sold a mobile phone at the price of ₹ 1950 and made a loss of 25%. At what price will she have to sell it to get a profit of 30%?
Answer: (D) ₹ 3380/-
Explanation
If the word HEART is written as SQPMZ, then EARTH can be written as
Answer: (B) QPMZS
Explanation
In the sequence
10KL13, 15PQ18, 19TU22, __
What will be last place?
Answer: (D) 23XY26
Explanation
In the statement “the hill has smoke because it has fire”, which type of fallacy may be identified?
Answer: (D) Vyapyatvasidha
Explanation
All knowable objects are nameable;
The pot is a knowable object;
Therefore, the pot is nameable
The above is an example of which type of inference?
Answer: (A) Kevalanvayi
Explanation
Match List-I with List-II.
| List I: Pairs | List II: Pairs of analogies |
|---|---|
| A. Newspaper - Press | I. Thirst - Water |
| B. Dog - Kennel | II. Cow - Calf |
| C. Hen - Chick | III. Cloth - Mill |
| D. Darkness - Lamp | IV. Mouse - Hole |
Answer: (B) A - III, B - IV, C - II, D - I
Explanation
Match List-I with List-II.
| List I | List II |
|---|---|
| A. Web browser | I. Hard Disk |
| B. Operating system | II. Chrome |
| C. Secondary memory | III. MS-Word |
| D. Application software | IV. DOS |
Answer: (B) A - II, B - IV, C - I, D - III
Explanation
Match List-I with List-II.
| List I | List II |
|---|---|
| A. Software | I. Step by step procedure to solve a problem |
| B. Hardware | II. Raw facts and figures |
| C. Algorithm | III. Hard Disk |
| D. Data | IV. Linux |
Answer: (D) A - IV, B - III, C - I, D - II
Explanation
What type of device is a joystick?
Answer: (A) Input
Explanation
Which of the following is an application software?
Answer: (D) MS Word
Explanation
Information is
Answer: (B) Processed data
Explanation
Identify the correct sequence in increasing order of the carbon content per unit mass of the following reservoirs of carbon in terrestrial environment
A. Plants
B. Peat
C. Soil organic matter
D. Fossil fuels
Choose the correct answer from the options given below
Answer: (A) B, A, C, D
Explanation
Given below are two statements, one is labelled as Assertion A and the other is labelled as Reason R
Assertion (A): Lakes are less prone to getting polluted than rivers
Reason (R): Water in lakes gets replaced through natural processes
In light of the above statements, choose the most appropriate answer from the options given below
Answer: (D) A is not correct but R is correct
Explanation
Under Millennium Development Goal 5, maternal mortality ratio between 1990 and 2015 was to be reduced by
Answer: (B) 75 %
Explanation
According to the classification of Ministry of New and Renewable Energy and Central Electricity Authority of India, small hydro power plants have capacity in the range
Answer: (A) 1-25 MW
Explanation
India’s first National Policy on Education was a sequel to the recommendations of which of the following committee/commissions?
Answer: (A) Kothari Commission
Explanation
‘NEAT’ an MHRD scheme, aims at
Answer: (A) Better learning outcomes in higher education
Explanation
The first National Sports University (a Central Government University) is in the state of
Answer: (B) Manipur
Explanation
Which of the following committees/commissions in their report recommended that science Education and Research should receive high priority to accelerate national economy?
Answer: (D) Kothari Commission
Explanation
Given below are two statements, one is labelled as Assertion A and the other is labelled as Reason R
Assertion (A): Global emissions of carbon dioxide stagnated during the years 2014-2016
Reason (R): Strong energy efficiency improvement measures and low carbon technologies were deployed during 2014-2016
In light of the above statements, choose the most appropriate answer from the options given below
Answer: (A) Both A and R are correct and R is the correct explanation of A
Explanation
A predatory journal is the one whose publishers
Answer: (A) Publish for a fee with substandard or no peer reviewing
Explanation
The use of stock phrases in educational discussions has tended to reveal
The ceremonial use of slogans and catchwords in educational discussions raises the suspicion of a tenuous linkage between thought and action. As stock phrases multiply and the talk begins to take on an idealistic ring, the wary listener might well begin to wonder whether the lip service paid to these concepts is connected with what actually goes on in classrooms. It is difficult in this day and age to be opposed to democracy, creativity, and innovation in education, but how are these attractive words related to the more mundane business of teaching practice? The answer, of course, is that the two are often not related - a fact that accounts for one of the most frequently recurring complaints among today's educators: the all-too-obvious gap between theory (i.e., educational talk) on the one hand and practice on the other.
The dissonance between what teachers say, or at least what their leaders say, and what they do takes many forms and has several important consequences. For some, it lays the groundwork for the development of a cynical outlook towards the admonitions of idealists and the advocates of new and supposedly revolutionary practices. This cynicism, which grows out of a prior sense of disillusionment, strikes many young teachers as they begin to appreciate the unrealistic quality of several of the expectations aroused during the period of their professional training. Teaching as actually experienced and as described in textbooks and college courses often turns out to be two quite different states of affairs. The result is that college instructors of education and other outsiders begin to be looked upon with suspicion by many practitioners. Even the testimony of fellow teachers may be viewed suspiciously when it conflicts with the listener's own experience in the classroom.
Answer: (B) The difference between saying and doing in classroom contexts
Explanation
How are the idealistic concepts related to the routine practices in education?
The ceremonial use of slogans and catchwords in educational discussions raises the suspicion of a tenuous linkage between thought and action. As stock phrases multiply and the talk begins to take on an idealistic ring, the wary listener might well begin to wonder whether the lip service paid to these concepts is connected with what actually goes on in classrooms. It is difficult in this day and age to be opposed to democracy, creativity, and innovation in education, but how are these attractive words related to the more mundane business of teaching practice? The answer, of course, is that the two are often not related - a fact that accounts for one of the most frequently recurring complaints among today's educators: the all-too-obvious gap between theory (i.e., educational talk) on the one hand and practice on the other.
The dissonance between what teachers say, or at least what their leaders say, and what they do takes many forms and has several important consequences. For some, it lays the groundwork for the development of a cynical outlook towards the admonitions of idealists and the advocates of new and supposedly revolutionary practices. This cynicism, which grows out of a prior sense of disillusionment, strikes many young teachers as they begin to appreciate the unrealistic quality of several of the expectations aroused during the period of their professional training. Teaching as actually experienced and as described in textbooks and college courses often turns out to be two quite different states of affairs. The result is that college instructors of education and other outsiders begin to be looked upon with suspicion by many practitioners. Even the testimony of fellow teachers may be viewed suspiciously when it conflicts with the listener's own experience in the classroom.
Answer: (D) They lead to the identification of gap between theory and practice
Explanation
What is the sequel of lack of congruence between saying and doing as evident in teacher behavior?
The ceremonial use of slogans and catchwords in educational discussions raises the suspicion of a tenuous linkage between thought and action. As stock phrases multiply and the talk begins to take on an idealistic ring, the wary listener might well begin to wonder whether the lip service paid to these concepts is connected with what actually goes on in classrooms. It is difficult in this day and age to be opposed to democracy, creativity, and innovation in education, but how are these attractive words related to the more mundane business of teaching practice? The answer, of course, is that the two are often not related - a fact that accounts for one of the most frequently recurring complaints among today's educators: the all-too-obvious gap between theory (i.e., educational talk) on the one hand and practice on the other.
The dissonance between what teachers say, or at least what their leaders say, and what they do takes many forms and has several important consequences. For some, it lays the groundwork for the development of a cynical outlook towards the admonitions of idealists and the advocates of new and supposedly revolutionary practices. This cynicism, which grows out of a prior sense of disillusionment, strikes many young teachers as they begin to appreciate the unrealistic quality of several of the expectations aroused during the period of their professional training. Teaching as actually experienced and as described in textbooks and college courses often turns out to be two quite different states of affairs. The result is that college instructors of education and other outsiders begin to be looked upon with suspicion by many practitioners. Even the testimony of fellow teachers may be viewed suspiciously when it conflicts with the listener's own experience in the classroom.
Answer: (C) Emergence of disillusionment among teachers
Explanation
Why do young teachers appreciate the unrealistic quality of expectations?
The ceremonial use of slogans and catchwords in educational discussions raises the suspicion of a tenuous linkage between thought and action. As stock phrases multiply and the talk begins to take on an idealistic ring, the wary listener might well begin to wonder whether the lip service paid to these concepts is connected with what actually goes on in classrooms. It is difficult in this day and age to be opposed to democracy, creativity, and innovation in education, but how are these attractive words related to the more mundane business of teaching practice? The answer, of course, is that the two are often not related - a fact that accounts for one of the most frequently recurring complaints among today's educators: the all-too-obvious gap between theory (i.e., educational talk) on the one hand and practice on the other.
The dissonance between what teachers say, or at least what their leaders say, and what they do takes many forms and has several important consequences. For some, it lays the groundwork for the development of a cynical outlook towards the admonitions of idealists and the advocates of new and supposedly revolutionary practices. This cynicism, which grows out of a prior sense of disillusionment, strikes many young teachers as they begin to appreciate the unrealistic quality of several of the expectations aroused during the period of their professional training. Teaching as actually experienced and as described in textbooks and college courses often turns out to be two quite different states of affairs. The result is that college instructors of education and other outsiders begin to be looked upon with suspicion by many practitioners. Even the testimony of fellow teachers may be viewed suspiciously when it conflicts with the listener's own experience in the classroom.
Answer: (A) Because of the cynical attitude among teachers
Explanation
The passage analyses
The ceremonial use of slogans and catchwords in educational discussions raises the suspicion of a tenuous linkage between thought and action. As stock phrases multiply and the talk begins to take on an idealistic ring, the wary listener might well begin to wonder whether the lip service paid to these concepts is connected with what actually goes on in classrooms. It is difficult in this day and age to be opposed to democracy, creativity, and innovation in education, but how are these attractive words related to the more mundane business of teaching practice? The answer, of course, is that the two are often not related - a fact that accounts for one of the most frequently recurring complaints among today's educators: the all-too-obvious gap between theory (i.e., educational talk) on the one hand and practice on the other.
The dissonance between what teachers say, or at least what their leaders say, and what they do takes many forms and has several important consequences. For some, it lays the groundwork for the development of a cynical outlook towards the admonitions of idealists and the advocates of new and supposedly revolutionary practices. This cynicism, which grows out of a prior sense of disillusionment, strikes many young teachers as they begin to appreciate the unrealistic quality of several of the expectations aroused during the period of their professional training. Teaching as actually experienced and as described in textbooks and college courses often turns out to be two quite different states of affairs. The result is that college instructors of education and other outsiders begin to be looked upon with suspicion by many practitioners. Even the testimony of fellow teachers may be viewed suspiciously when it conflicts with the listener's own experience in the classroom.
Answer: (B) The schism between theory and actual practice of teaching
Explanation
100 questions with the answer key and explanations.
Two statements are given
Statement I: Learning curve effect is related to a firm's long-run average cost curve
Statement II: A swapped allocation is one that is Pareto efficient as well as an equitable allocation
In light of the above statements, choose the correct answer from the options listed
Answer: (A) Both Statement I and Statement II are true
Explanation
For the Income Consumption curve diagram described in the source, which one of these is correct beyond point A?
Answer: (B) Good y is inferior and Good x is normal
Explanation
Match List-I with List-II.
| List I | List II |
|---|---|
| A. Effectiveness of private market in dealing with externalities | I. Laffer Curve |
| B. Relationship between increase in tax rate and tax revenue | II. Deadweight Loss |
| C. Dominant strategy | III. Coase Theorem |
| D. Controlling prices through effective price ceiling and a price floor | IV. Game Theory |
Answer: (A) A - III, B - I, C - IV, D - II
Explanation
Given the production function Q = A L^alpha K^beta, which of the statements are correct?
A. The coefficient A shows managerial efficiency
B. If alpha + beta > 1 then the production function exhibits increasing returns to scale
C. Marginal Rate of Technical Substitution of L for K is given by beta K / alpha L
D. The Marginal Product of Capital is given by beta Q / K
Choose the correct answer from the options listed:
Answer: (B) A, B and D only
Explanation
Presence of asymmetric information in the market causes which of the following?
A. Adverse selection
B. Marginal benefits of an additional unit of resources diminish with an increasing number of units of resources
C. Efficiency wages
D. Principal-Agent problem
Choose the correct answer from the options listed:
Answer: (C) A and D only
Explanation
The solution of the following game is given by:
| B1 | B2 | B3 | |
|---|---|---|---|
| A1 | 2 | 4 | 2 |
| A2 | 1 | -5 | -4 |
| A3 | 2 | 6 | -2 |
Answer: (B) Value of game = 2. Best strategy for Players A and B are (A1, B1) or (A3, B1) or (A1, B3) respectively
Explanation
Market failure is caused due to the presence of:
A. Poverty
B. Externalities
C. Market power
D. Private goods
Choose the correct answer from the options listed:
Answer: (B) B and C only
Explanation
Match List-I with List-II.
| List I | List II |
|---|---|
| A. Chamberlin | I. Small group model |
| B. Sweezy | II. Kinked demand curve |
| C. Stackelberg | III. Reaction curves |
| D. Fellner | IV. Price leadership model |
Answer: (D) A - I, B - II, C - IV, D - III
Explanation
Maximum Social Welfare is guaranteed where a competitive firm exhibits the following condition [where MRPTxy is Marginal Rate of Product Transformation of x for y]
Answer: (A) MRPTxy = Price of x (Px) / Price of y (Py) = Marginal Cost of x (MCx) / Marginal Cost of y (MCy)
Explanation
Two statements are given, one is labelled as Assertion A and the other is labelled as Reason R
Assertion (A): Compared to a certain point on the Contract curve, a point above the Contract curve is more efficient
Reason (R): The Contract curve represents the locus of points where the marginal rate of substitution between two goods is the same for both individuals
In light of the above statements, choose the most appropriate answer from the options listed
Answer: (D) A is not correct but R is correct
Explanation
A leftward shift in labour demand curve is caused by:
Answer: (D) Decrease in marginal productivity of labour
Explanation
Cross elasticity of demand of metro rides is 0.8 and total ridership per day is 1.5 Lakh. If price of bus rides rises by 5%, the change in total metro rides will be:
Answer: (C) 6000
Explanation
Two statements are given, one is labelled as Assertion A and the other is labelled as Reason R
Assertion (A): High powered money is the source of all other forms of money that impact money supply
Reason (R): Credit is created by commercial banks
In light of the above statements, choose the most appropriate answer from the options listed
Answer: (B) Both A and R are correct but R is NOT the correct explanation of A
Explanation
Absolute income hypothesis explains:
Answer: (A) Consumer behavior
Explanation
The cost of holding money by individuals:
A. Loss of real value of money due to deflation
B. Foregone interest from savings
C. Utility foregone by not buying goods and services
D. Returns foregone by not holding other assets
Choose the most appropriate answer from the options listed:
Answer: (A) B, C and D only
Explanation
The government multiplier is given by (where c = MPC and t = tax rate)
Answer: (D) 1 / [1 - c(1 - t)]
Explanation
Arrange the following in chronological order:
A. Rational Expectation Doctrine
B. Keynesian Economics
C. Monetarism
D. Classical Economics
Choose the correct answer from the options listed:
Answer: (D) D, B, C, A
Explanation
IS and LM curve analysis explain:
A. Product market equilibrium
B. Money market equilibrium
C. Capital market equilibrium
D. Foreign trade equilibrium
Choose the correct answer from the options listed:
Answer: (C) A and B only
Explanation
Which of the situations represents an economic investment in the national income calculation?
A. Buying a newly constructed house for self-occupation
B. Buying of new shares
C. Buying a new car by a publishing house for delivering books
D. Buying a new car by a household
Choose the correct answer from the options listed:
Answer: (D) A and C only
Explanation
What is the value of the equilibrium level of income for the data listed for an economy?
C = 50 + 0.8Yd
t = 20%
I = 100
G = 30
Answer: (C) 500
Explanation
Labour force participation rate is given by:
Answer: (C) Labour force / Adult population x 100
Explanation
GDP expressed in terms of current prices is called:
Answer: (C) Nominal GDP
Explanation
Which of the equations represent national income identity?
A. Y = C + I + X
B. Y = C + I + G + S
C. Y = C + I + G + (X - M)
D. Y = C + I + G + M
Choose the correct answer from the options listed:
Answer: (B) C only
Explanation
Match List-I with List-II.
| List I | List II |
|---|---|
| A. Permanent Income Hypothesis | I. F. Modigliani |
| B. Relative Income Hypothesis | II. J. M. Keynes |
| C. Absolute Income Hypothesis | III. M. Friedman |
| D. Life Cycle Hypothesis | IV. J. Dusenberry |
Answer: (D) A - III, B - IV, C - II, D - I
Explanation
For any two equally likely, exhaustive and independent events A and B, P(AB) will be equal to:
Answer: (B) 0.25
Explanation
What type of relationship exists between two variables, if all points on the scatter diagram appear to fall on a straight line going upward from left to right?
Answer: (B) Perfect positive correlation
Explanation
Given sigma as the Standard Deviation of a given series and if to each and every observation of the series is added a constant k, then what will be Standard Deviation of the new series?
Answer: (C) sigma
Explanation
Which one of the price Index numbers satisfy the Factor Reversal Test?
Answer: (D) Fisher's Price Index Number
Explanation
Match List-I with List-II.
| List I: Statistic | List II: Standard Error |
|---|---|
| A. Sample Mean (x-bar) | I. sqrt(sigma1^2 / 2n1 + sigma2^2 / 2n2) |
| B. Sample Variance (s^2) | II. sqrt(sigma1^2 / n1 + sigma2^2 / n2) |
| C. Difference of two independent sample means (x-bar1 - x-bar2) | III. sigma / sqrt(n) |
| D. Difference of two independent sample standard deviations (s1 - s2) | IV. sqrt(2 sigma^2 / n) |
Answer: (A) A - III, B - IV, C - II, D - I
Explanation
Given the sample size 400 with sample mean 99, the population mean 100 and computed value of z-statistic at -2.5, the value of population standard deviation will be:
Answer: (C) 8
Explanation
If the disturbance term is heteroscedastic, which one of the responses based on given statements, is true?
A. OLS estimates are biased
B. OLS estimates do not have the minimum variance property
C. Tests of significance based on OLS estimates will be inaccurate
D. OLS estimates are inconsistent
Choose the correct answer from the options listed:
Answer: (C) B and C are true only
Explanation
Based on the order condition, state whether the first equation is identified? Given the following structural model:
y1 = 3y2 - 2x1 + x2 + u1
y2 = y3 + x3 + u2
y3 = y1 - y2 - 2x3 + u3
where y's are the endogenous variables, x's are predetermined variables and u's are random terms:
Answer: (C) Exactly Identified
Explanation
Which one of the response is true as a solution for simultaneous equation bias?
A. OLS Method
B. Principal Component Method
C. Two-Stage Least Square Method (2SLS Method)
D. Full Information Maximum Likelihood Method (FIML)
Choose the correct answer from the options listed:
Answer: (C) C and D are true only
Explanation
A time series, under the condition E(Xt) = mu and Cov(Xt, Xt-k) = gamma(k) is said to be:
Answer: (C) Weakly Stationary
Explanation
Match List-I with List-II.
| List I | List II |
|---|---|
| A. Linear Function | I. y = 3x^2 + 2x + 9 |
| B. Quadratic Function | II. y = 5x^3 |
| C. Exponential Function | III. y = 3e^(2x) |
| D. Power Function | IV. y = 5x + 3 |
Answer: (A) A - IV, B - I, C - III, D - II
Explanation
Given the Total Revenue function, TR = 1400Q - 6Q^2 and Total Cost Function, TC = 1500 + 80Q, at Q = 100 units (where Q is the amount of output), which one of the responses is correct?
A. MR > MC
B. MC = 80
C. MR < MC
D. MR = MC
Answer: (A) A and B are true only
Explanation
Given the production function, Q = 10 L^0.8 K^0.2, the Marginal Product of Labour (MPL) and Capital (MPK), respectively are given by:
A. MPL = 8(K/L)^0.2
B. MPL = 8(L/K)^0.2
C. MPK = 2(L/K)^0.8
D. MPK = 2(K/L)^0.8
Choose the correct answer from the options listed:
Answer: (B) A and C are true only
Explanation
Two statements are given, one is labelled as Assertion A and the other is labelled as Reason R
Assertion (A): If A is the matrix shown in the source, then det A = 0, since all elements in column II are zero.
Reason (R): Laplace expansion permits evaluation of a determinant along any row or column
In light of the statements, choose the most appropriate answer from the options:
| Row | Matrix A |
|---|---|
| 1 | 5 0 3 |
| 2 | -1 0 2 |
| 3 | 1 0 1 |
Answer: (A) Both A and R are correct and R is the correct explanation of A
Explanation
Which one of these is a valid objective function as a linear programming problem?
Answer: (A) Minimum average cost is ACmin = 35 at Q = 5
Explanation
Which one of the is a valid objective function as a linear programming problem?
Answer: (D) Min Z = 5x + 2y
Explanation
If no industry (sector) draws its own output as input, then the principal diagonal element in the Technological Coefficient Matrix will be:
Answer: (C) Zero
Explanation
Which of the are Hawkins-Simon conditions?
A. Determinant A should be positive
B. Determinant (I - A) should be positive
C. Determinant (I - A) should be negative
D. Principal diagonal elements of Matrix (I - A) should be positive
Choose the correct answer from the options listed:
Answer: (C) B and D only
Explanation
In the study of International Economics, we use the tools of:
Answer: (D) Both micro and macro economic theory but we extend, adapt and integrate them
Explanation
Match List-I with List-II.
| List I | List II |
|---|---|
| A. Absolute Advantage Theory of International Trade | I. Heckscher-Ohlin |
| B. Factor Proportion Theory of Trade | II. Marshall |
| C. Offer Curves | III. Adam Smith |
| D. Opportunity Costs | IV. Haberler |
Answer: (B) A - III, B - I, C - II, D - IV
Explanation
Transportation cost of trade affects:
A. Pattern of trade
B. Boundaries between tradable and non-tradable goods
C. Global supply chains
D. Boundaries of non-tradable goods
Choose the correct answer from the options listed:
Answer: (B) A, B and C only
Explanation
Two statements are given, one is labelled as Assertion A and the other is labelled as Reason R
Assertion (A): Marshall-Learner condition should be fulfilled for the success of devaluation
Reason (R): Devaluation makes exports costly and imports cheaper
In light of the above statements, choose the most appropriate answer from the options listed:
Answer: (C) A is correct but R is not correct
Explanation
Forward exchange rates are useful for those who wish to:
A. Protect themselves from the risk that the exchange rate will change before a transaction is completed
B. Gamble that a currency will rise in value
C. Gamble that a currency will fall in value
D. Exchange currencies at a point in time in the future
Choose the correct answer from the options listed:
Answer: (D) A, B, C and D only
Explanation
Overshooting model of exchange rate developed by economist Rudi Dornbusch, attempts to establish:
Answer: (B) Relationship between sticky prices and volatile exchange rates
Explanation
Changes in terms of trade typically put less developed countries at a disadvantage, because:
Answer: (A) They specialize and trade in agricultural goods rather than manufactured goods
Explanation
Match List-I with List-II.
| List I | List II |
|---|---|
| A. Rybczynski Theorem | I. The effect of tariffs on factor prices |
| B. Metzler Effect | II. The effect of factor growth on production and trade |
| C. Stolper-Samuelson Theorem | III. The effect of tariffs on domestic prices |
| D. Immiserising growth theory | IV. The effect of growth on terms of trade |
Answer: (A) A - II, B - III, C - I, D - IV
Explanation
Two statements are given:
Statement I: The Rybczynski theorem postulates that at constant commodity prices, an increase in the endowment of one factor will increase by a greater proportion the output of the commodity intensive in that factor and will reduce the output of the other commodity.
Statement II: The Stolper-Samuelson theorem postulates that an increase in the relative price of a commodity (for example as a result of a tariff) decreases the return or earnings of the factor used intensively in the production of the commodity.
In light of the above statements, choose the correct answer from the options listed:
Answer: (C) Statement I is correct but Statement II is false
Explanation
Which one of these is NOT the objective of IMF?
Answer: (D) To provide loans to the private sector
Explanation
The concept of Goods and Services Tax (GST) is originated in:
Answer: (A) Canada
Explanation
Two statements are given
Statement I: Mrs. Ursula K. Hicks stated that private finance starts with a given income plan as a framework within which expenditure must be planned; public finance starts with a given expenditure plan and the authorities adjust their income by means of taxes and resources to match the expenditure.
Statement II: Prof. Shiras pointed out that public authorities differ from private expenditure in that the former should balance income and should not necessarily seek a profit in the manner that an individual would.
In light of the above statements, choose the correct answer from the options listed:
Answer: (A) Both Statement I and Statement II are true
Explanation
The best system of taxation from the economic point of view is that which has the best or the least bad economic effects. Who said this?
Answer: (C) Hugh Dalton
Explanation
Inadequacy or absence of KYC (Know Your Customer) standards can subject a bank to serious and counter party risk as follows:
A. Reputation Risk
B. Compliance Risk
C. Legal Risk
D. Bankruptcy Risk
Choose the correct answer from the options listed:
Answer: (B) A, B and C only
Explanation
What is the maximum penalty to be imposed under the Negotiable Instruments Act for bouncing of a cheque?
Answer: (C) 2 years
Explanation
Two statements are given, one is labelled as Assertion A and the other is labelled as Reason R
Assertion (A): The main cause of commercial bank failure is because of providing inappropriate loans to bank insiders.
Reason (R): Bank employees are provided loans at lower interest rates.
In light of the above statements, choose the most appropriate answer from the options listed:
Answer: (B) Both A and R are correct but R is NOT the correct explanation of A
Explanation
Seigniorage in banking means:
A. The economic cost of providing a currency within a given economy
B. The difference between the face value of money and the cost of providing it
C. The cost involved in running ATMs
D. The costs of making debit/credit cards in an economy
Choose the correct answer from the options listed:
Answer: (D) A and B only
Explanation
Markowitz theory of portfolio management considers which of the following assumptions?
A. Investors are pessimistic about start-ups but optimistic about an established business
B. Investors have free access to fair and correct information on return and risk
C. Investors have a tendency to lean towards cryptocurrencies
D. Investors are rational and maximize their utility with a given level of income and money
Choose the correct answer from the options listed:
Answer: (B) B and D only
Explanation
Banking Cash Transaction Tax (BCTT) was introduced with effect from:
Answer: (B) 1 June, 2005
Explanation
Two statements are given, one is labelled as Assertion A and the other is labelled as Reason R
Assertion (A): According to Walt W. Rostow, the Principal Strategy of Development necessary for take-off was the mobilization of domestic and foreign savings.
Reason (R): Mobilization of domestic and foreign savings is necessary to generate sufficient investment to accelerate economic growth.
In light of the above statements, choose the correct answer from the options listed:
Answer: (A) Both A and R are true and R is the correct explanation of A
Explanation
According to traditional neoclassical growth theory, output growth results from:
A. Increase in labour quantity and quality
B. Increase in capital
C. Increase in exports
D. Improvement in technology
Choose the correct answer from the options listed:
Answer: (D) A, B and D only
Explanation
Two statements are given:
Statement I: The endogenous growth theorists suggest, investment in human capital, innovation and knowledge leads to economic growth.
Statement II: Investment in human capital, innovation and knowledge reduces the diminishing returns on investment.
In light of the above statements, choose the most appropriate answer from the options listed:
Answer: (A) Both Statement I and Statement II are correct
Explanation
A decision free framework to identify a country's most binding constraints on economic growth is termed as:
Answer: (B) Growth diagnostics
Explanation
Arrange the following growth economists in chronological order of when they proposed their theories:
A. Harrod
B. Schumpeter
C. Rostow
D. Solow
Choose the correct answer from the options listed:
Answer: (A) B, A, D, C
Explanation
A growth model in which there are diminishing returns on each factor of production but constant returns to scale and exogenous technological change that generates long term economic growth is the:
Answer: (D) Solow model
Explanation
A graph reflecting the relationship between a country's per capita income and its inequality of income distribution is the:
Answer: (D) Kuznets Curve
Explanation
Match List-I with List-II.
| List I | List II |
|---|---|
| A. Critical Minimum Effort Theory | I. C. P. Blacker |
| B. Neo-Classical Growth Model | II. W. W. Rostow |
| C. Demographic Transition Theory | III. R. Solow |
| D. Age of High Mass Consumption | IV. H. Leibenstein |
Answer: (D) A - IV, B - III, C - I, D - II
Explanation
Harrod-Domar considers a functional economic relationship in which the growth rate of the gross domestic product depends:
A. Directly on the national net savings rate
B. Inversely on the national capital-output ratio
C. Directly on industrial growth
D. Inversely on agricultural growth
Choose the correct answer from the options listed:
Answer: (A) A and B only
Explanation
Based on Blacker's stages of population growth diagram, the portion between A, B and C implies:
Answer: (C) Early expanding
Explanation
Match List-I with List-II.
| List I | List II |
|---|---|
| A. Karl Marx Theory of Population growth | I. Static interpretation |
| B. Blacker's Theory of Population growth | II. Three stages |
| C. Landry's Theory of Population growth | III. Four stages |
| D. Prof. Sidgwick's Optimum Population Theory | IV. Five stages |
Answer: (C) A - III, B - IV, C - II, D - I
Explanation
Match List-I with List-II.
| List I | List II |
|---|---|
| A. Kerala | I. Least urbanized |
| B. Punjab | II. Highest percentage of S.C.s in their population |
| C. Himachal Pradesh | III. Highest percentage of S.T.s in their population |
| D. Madhya Pradesh | IV. Highest sex ratio |
Answer: (A) A - IV, B - II, C - I, D - III
Explanation
Population Density refers to:
Answer: (C) Number of persons per square kilometer
Explanation
Two statements are given:
Statement I: Growth in infrastructure is considered as an essential pre-requisite for stepping up GDP growth.
Statement II: It is vitally important to increase capital formation in India.
In light of the above statements, choose the most appropriate answer from the options listed:
Answer: (C) Both Statement I and Statement II are correct
Explanation
Two statements are given:
Statement I: Industrialization strategy advocates trade and development to overcome market failures through government policy.
Statement II: It encourages technology transfer and exports of progressively more advanced products.
In light of the above statements, choose the correct answer from the options listed:
Answer: (D) Both Statement I and Statement II are true
Explanation
Growth rate of population is:
Answer: (A) Rate at which population increases per 1000 per annum
Explanation
Account payee crossing is defined in which section of the Negotiable Instruments (NI) Act?
Answer: (D) Not defined in NI Act
Explanation
According to the last Census (2011), which Indian state has the minimum sex ratio?
Answer: (D) Haryana
Explanation
According to Economic Survey, 2019, the top five trading partners of India continue to be USA, China, UAE and:
A. Saudi Arabia
B. Hong Kong
C. Singapore
D. Sri Lanka
Choose the correct answer from the options listed:
Answer: (D) A and B only
Explanation
Who said, "I believe that the objective for disinvestment should be to benefit the public, the consumer and the investor and at the same time to improve competitiveness and eliminate monopoly?"
Answer: (B) George Fernandes
Explanation
Two statements are given, one is labelled as Assertion A and the other is labelled as Reason R
Assertion (A): Chronic poverty is the main problem facing India.
Reason (R): British colonial rule has caused underdevelopment in India.
In light of the above statements, choose the most appropriate answer from the options listed:
Answer: (B) Both A and R are correct but R is NOT the correct explanation of A
Explanation
The share of the service sector in the Gross Value Added of India at current prices, during 2018-19 is between:
Answer: (C) 53 to 55 percent
Explanation
White revolution refers to boost in the production of:
Answer: (B) Milk
Explanation
The number of districts initially selected from states under the Intensive Area Development Programme (1960):
Answer: (D) Seven districts from seven states
Explanation
Which one of the Committees has been constituted for doubling farmer's income by 2022?
Answer: (D) Ashok Dalwai Committee
Explanation
Which one of the statements is WRONG?
Answer: (B) 10% of agriculturists have 10 hectares or more
Explanation
The combined liabilities of Centre and States as a percentage of GDP during the two years 2016-17 and 2017-18 consolidated is at:
Answer: (B) 67 percent
Explanation
Which of these are the three states which secured the highest percentage of inter-se share of tax revenue among states, as per recommendations of the 14th Finance Commission?
Answer: (C) A, B and C only
Explanation
Which of these are forms of government borrowing?
Answer: (C) A, B, C and D
Explanation
An example of green good is:
A. White paper
B. Wind power
C. Forest products
D. Solar energy
Choose the correct answer from the options:
There is considerable evidence that some consumers are willing to pay more for green goods. Green goods are goods that are manufactured in an environmentally friendly way (e.g. wood products from sustainable forests, electricity produced from wind power) without a direct impact on a consumer. These are referred to as impure Public goods - a package of Private good and Public good.
Why consumers are willing to pay more for these goods is complex. Whatever the reason, it is clear some consumers are willing to pay for green actions that do not benefit them directly. One example of green goods is green electricity. Green power is simply electricity produced using renewable sources of energy. Of course, electricity itself is completely indistinguishable from non-green electricity. There are two ways in which consumers may buy green electricity; either by buying it directly or by contributing to the cost of building green electricity capacity. Consumers are clearly willing to spend more for green electricity and their preference for green production is indicated by the recent rise in popularity of retail carbon offsets. Offsets of emissions have long been used by firms to buy and sell the obligation to reduce emissions. In the USA, new emitters setting up a business in an urban area have to offset their emission additions by finding (and paying) existing firms to reduce their emissions. In recent years, firms have used offsets to effectively reduce their emissions in order to provide a green image, particularly in the case of carbon emissions.
The purchase of offsets by consumers is different when consumers buy offsets. They are making a purely voluntary contribution to the environment. Retail offsets are a way in which consumers can produce a green product from a brown product. For example, one can make his part of the flight carbon neutral by paying someone else to reduce his or her carbon emission. This is formalized in an offset market whereby sellers of offsets reduce emissions and then sell these reductions.
Answer: (D) B and D only
Explanation
Green Electricity means:
There is considerable evidence that some consumers are willing to pay more for green goods. Green goods are goods that are manufactured in an environmentally friendly way (e.g. wood products from sustainable forests, electricity produced from wind power) without a direct impact on a consumer. These are referred to as impure Public goods - a package of Private good and Public good.
Why consumers are willing to pay more for these goods is complex. Whatever the reason, it is clear some consumers are willing to pay for green actions that do not benefit them directly. One example of green goods is green electricity. Green power is simply electricity produced using renewable sources of energy. Of course, electricity itself is completely indistinguishable from non-green electricity. There are two ways in which consumers may buy green electricity; either by buying it directly or by contributing to the cost of building green electricity capacity. Consumers are clearly willing to spend more for green electricity and their preference for green production is indicated by the recent rise in popularity of retail carbon offsets. Offsets of emissions have long been used by firms to buy and sell the obligation to reduce emissions. In the USA, new emitters setting up a business in an urban area have to offset their emission additions by finding (and paying) existing firms to reduce their emissions. In recent years, firms have used offsets to effectively reduce their emissions in order to provide a green image, particularly in the case of carbon emissions.
The purchase of offsets by consumers is different when consumers buy offsets. They are making a purely voluntary contribution to the environment. Retail offsets are a way in which consumers can produce a green product from a brown product. For example, one can make his part of the flight carbon neutral by paying someone else to reduce his or her carbon emission. This is formalized in an offset market whereby sellers of offsets reduce emissions and then sell these reductions.
Answer: (A) Electricity produced from renewable sources of energy
Explanation
Impure Public goods are:
There is considerable evidence that some consumers are willing to pay more for green goods. Green goods are goods that are manufactured in an environmentally friendly way (e.g. wood products from sustainable forests, electricity produced from wind power) without a direct impact on a consumer. These are referred to as impure Public goods - a package of Private good and Public good.
Why consumers are willing to pay more for these goods is complex. Whatever the reason, it is clear some consumers are willing to pay for green actions that do not benefit them directly. One example of green goods is green electricity. Green power is simply electricity produced using renewable sources of energy. Of course, electricity itself is completely indistinguishable from non-green electricity. There are two ways in which consumers may buy green electricity; either by buying it directly or by contributing to the cost of building green electricity capacity. Consumers are clearly willing to spend more for green electricity and their preference for green production is indicated by the recent rise in popularity of retail carbon offsets. Offsets of emissions have long been used by firms to buy and sell the obligation to reduce emissions. In the USA, new emitters setting up a business in an urban area have to offset their emission additions by finding (and paying) existing firms to reduce their emissions. In recent years, firms have used offsets to effectively reduce their emissions in order to provide a green image, particularly in the case of carbon emissions.
The purchase of offsets by consumers is different when consumers buy offsets. They are making a purely voluntary contribution to the environment. Retail offsets are a way in which consumers can produce a green product from a brown product. For example, one can make his part of the flight carbon neutral by paying someone else to reduce his or her carbon emission. This is formalized in an offset market whereby sellers of offsets reduce emissions and then sell these reductions.
Answer: (C) A package of Public and Private goods
Explanation
Offset of emissions are used:
A. To reduce emissions
B. To provide green image
C. For emission addition
D. To satisfy consumer preferences
Choose the correct answer from the options:
There is considerable evidence that some consumers are willing to pay more for green goods. Green goods are goods that are manufactured in an environmentally friendly way (e.g. wood products from sustainable forests, electricity produced from wind power) without a direct impact on a consumer. These are referred to as impure Public goods - a package of Private good and Public good.
Why consumers are willing to pay more for these goods is complex. Whatever the reason, it is clear some consumers are willing to pay for green actions that do not benefit them directly. One example of green goods is green electricity. Green power is simply electricity produced using renewable sources of energy. Of course, electricity itself is completely indistinguishable from non-green electricity. There are two ways in which consumers may buy green electricity; either by buying it directly or by contributing to the cost of building green electricity capacity. Consumers are clearly willing to spend more for green electricity and their preference for green production is indicated by the recent rise in popularity of retail carbon offsets. Offsets of emissions have long been used by firms to buy and sell the obligation to reduce emissions. In the USA, new emitters setting up a business in an urban area have to offset their emission additions by finding (and paying) existing firms to reduce their emissions. In recent years, firms have used offsets to effectively reduce their emissions in order to provide a green image, particularly in the case of carbon emissions.
The purchase of offsets by consumers is different when consumers buy offsets. They are making a purely voluntary contribution to the environment. Retail offsets are a way in which consumers can produce a green product from a brown product. For example, one can make his part of the flight carbon neutral by paying someone else to reduce his or her carbon emission. This is formalized in an offset market whereby sellers of offsets reduce emissions and then sell these reductions.
Answer: (C) A, B and D only
Explanation
The way in which consumers can produce a green product from a brown product:
There is considerable evidence that some consumers are willing to pay more for green goods. Green goods are goods that are manufactured in an environmentally friendly way (e.g. wood products from sustainable forests, electricity produced from wind power) without a direct impact on a consumer. These are referred to as impure Public goods - a package of Private good and Public good.
Why consumers are willing to pay more for these goods is complex. Whatever the reason, it is clear some consumers are willing to pay for green actions that do not benefit them directly. One example of green goods is green electricity. Green power is simply electricity produced using renewable sources of energy. Of course, electricity itself is completely indistinguishable from non-green electricity. There are two ways in which consumers may buy green electricity; either by buying it directly or by contributing to the cost of building green electricity capacity. Consumers are clearly willing to spend more for green electricity and their preference for green production is indicated by the recent rise in popularity of retail carbon offsets. Offsets of emissions have long been used by firms to buy and sell the obligation to reduce emissions. In the USA, new emitters setting up a business in an urban area have to offset their emission additions by finding (and paying) existing firms to reduce their emissions. In recent years, firms have used offsets to effectively reduce their emissions in order to provide a green image, particularly in the case of carbon emissions.
The purchase of offsets by consumers is different when consumers buy offsets. They are making a purely voluntary contribution to the environment. Retail offsets are a way in which consumers can produce a green product from a brown product. For example, one can make his part of the flight carbon neutral by paying someone else to reduce his or her carbon emission. This is formalized in an offset market whereby sellers of offsets reduce emissions and then sell these reductions.
Answer: (B) Retail offsets
Explanation
Which one of the following objectives of public finance is NOT correct?
The objectives of public finance are to ensure macroeconomic stability, achieve the desired state of distribution, provide public services to accelerate growth and development. Fiscal policy has both macro and microeconomic aspects. Further, the objectives include allocating resources for the provision of public services. The important point is that ensuring security and protection of property rights is a basic public good and this can be provided only by the government. The governments have the task of distributing incomes and alleviating poverty. After the Great Depression and influenced by Keynesian economics, public spending was assigned a central role.
Thus, the role of public finance is inextricably linked to the role of the state. From merely ensuring safety, security and property rights, governments have expanded their activities to providing a variety of public services with externalities. The expansion has been a subject matter of debate. Musgrave considers that the expansion of the public sector has been a necessary and constructive development and strong public sector is needed along with the capitalist market. In contrast, Buchanan argues that dispute arises when the state expands to areas beyond the realm of boundaries of the protective state into a productive or tax-transfer state. In India, state intervention through public finance policy has to play an important role besides ensuring the safety and security of people and their property rights. These include the need to overcome large social and physical infrastructure deficit, provide correctives to missing and imperfect markets, introduce measures to reduce acute inequalities and poverty and provide correctives to widespread information asymmetry. Interventions are needed also to provide externalities in terms of market development, irrigation, storage and price support in agriculture to deal with market imperfections and supply volatility. Similarly, generalized externalities have to be ensured for the manufacturing and service sectors through competitive levels of infrastructure. India's public finance policies have enabled the government to play a catalytic role in the development of the economy as a whole. In addition over the years, there has been a significant increase in transfers from the government such as for employment guarantee and food security, national housing scheme, Swachchh Bharat Abhiyan, Ujjawala Yojana, Pradhan Mantri Kisan Samman Nidhi, periodic loan waivers, etc.
Answer: (B) Ensure reduction of adverse balance of payments
Explanation
Which one of these statements is correct?
A. The expansion of the public sector has been a necessary and constructive development and a strong public sector is needed along with the capitalist market.
B. There are several reasons for the state to embrace a much larger role.
C. In India, state intervention through public finance policy has to play an important role.
D. Keynesian economics states that the state has to ensure full employment.
Choose the correct answer from the options:
The objectives of public finance are to ensure macroeconomic stability, achieve the desired state of distribution, provide public services to accelerate growth and development. Fiscal policy has both macro and microeconomic aspects. Further, the objectives include allocating resources for the provision of public services. The important point is that ensuring security and protection of property rights is a basic public good and this can be provided only by the government. The governments have the task of distributing incomes and alleviating poverty. After the Great Depression and influenced by Keynesian economics, public spending was assigned a central role.
Thus, the role of public finance is inextricably linked to the role of the state. From merely ensuring safety, security and property rights, governments have expanded their activities to providing a variety of public services with externalities. The expansion has been a subject matter of debate. Musgrave considers that the expansion of the public sector has been a necessary and constructive development and strong public sector is needed along with the capitalist market. In contrast, Buchanan argues that dispute arises when the state expands to areas beyond the realm of boundaries of the protective state into a productive or tax-transfer state. In India, state intervention through public finance policy has to play an important role besides ensuring the safety and security of people and their property rights. These include the need to overcome large social and physical infrastructure deficit, provide correctives to missing and imperfect markets, introduce measures to reduce acute inequalities and poverty and provide correctives to widespread information asymmetry. Interventions are needed also to provide externalities in terms of market development, irrigation, storage and price support in agriculture to deal with market imperfections and supply volatility. Similarly, generalized externalities have to be ensured for the manufacturing and service sectors through competitive levels of infrastructure. India's public finance policies have enabled the government to play a catalytic role in the development of the economy as a whole. In addition over the years, there has been a significant increase in transfers from the government such as for employment guarantee and food security, national housing scheme, Swachchh Bharat Abhiyan, Ujjawala Yojana, Pradhan Mantri Kisan Samman Nidhi, periodic loan waivers, etc.
Answer: (C) A and C only
Explanation
The statement, "Dispute arises when the state expands to areas beyond the realm of boundaries of the protective state into a productive or tax-transfer state", was given by:
The objectives of public finance are to ensure macroeconomic stability, achieve the desired state of distribution, provide public services to accelerate growth and development. Fiscal policy has both macro and microeconomic aspects. Further, the objectives include allocating resources for the provision of public services. The important point is that ensuring security and protection of property rights is a basic public good and this can be provided only by the government. The governments have the task of distributing incomes and alleviating poverty. After the Great Depression and influenced by Keynesian economics, public spending was assigned a central role.
Thus, the role of public finance is inextricably linked to the role of the state. From merely ensuring safety, security and property rights, governments have expanded their activities to providing a variety of public services with externalities. The expansion has been a subject matter of debate. Musgrave considers that the expansion of the public sector has been a necessary and constructive development and strong public sector is needed along with the capitalist market. In contrast, Buchanan argues that dispute arises when the state expands to areas beyond the realm of boundaries of the protective state into a productive or tax-transfer state. In India, state intervention through public finance policy has to play an important role besides ensuring the safety and security of people and their property rights. These include the need to overcome large social and physical infrastructure deficit, provide correctives to missing and imperfect markets, introduce measures to reduce acute inequalities and poverty and provide correctives to widespread information asymmetry. Interventions are needed also to provide externalities in terms of market development, irrigation, storage and price support in agriculture to deal with market imperfections and supply volatility. Similarly, generalized externalities have to be ensured for the manufacturing and service sectors through competitive levels of infrastructure. India's public finance policies have enabled the government to play a catalytic role in the development of the economy as a whole. In addition over the years, there has been a significant increase in transfers from the government such as for employment guarantee and food security, national housing scheme, Swachchh Bharat Abhiyan, Ujjawala Yojana, Pradhan Mantri Kisan Samman Nidhi, periodic loan waivers, etc.
Answer: (D) Buchanan
Explanation
The externalities of the government intervention in the economy can be found in terms of:
A. Market development
B. Money supply
C. Storage and price support in agriculture
D. Irrigation
Choose the correct answer from the options:
The objectives of public finance are to ensure macroeconomic stability, achieve the desired state of distribution, provide public services to accelerate growth and development. Fiscal policy has both macro and microeconomic aspects. Further, the objectives include allocating resources for the provision of public services. The important point is that ensuring security and protection of property rights is a basic public good and this can be provided only by the government. The governments have the task of distributing incomes and alleviating poverty. After the Great Depression and influenced by Keynesian economics, public spending was assigned a central role.
Thus, the role of public finance is inextricably linked to the role of the state. From merely ensuring safety, security and property rights, governments have expanded their activities to providing a variety of public services with externalities. The expansion has been a subject matter of debate. Musgrave considers that the expansion of the public sector has been a necessary and constructive development and strong public sector is needed along with the capitalist market. In contrast, Buchanan argues that dispute arises when the state expands to areas beyond the realm of boundaries of the protective state into a productive or tax-transfer state. In India, state intervention through public finance policy has to play an important role besides ensuring the safety and security of people and their property rights. These include the need to overcome large social and physical infrastructure deficit, provide correctives to missing and imperfect markets, introduce measures to reduce acute inequalities and poverty and provide correctives to widespread information asymmetry. Interventions are needed also to provide externalities in terms of market development, irrigation, storage and price support in agriculture to deal with market imperfections and supply volatility. Similarly, generalized externalities have to be ensured for the manufacturing and service sectors through competitive levels of infrastructure. India's public finance policies have enabled the government to play a catalytic role in the development of the economy as a whole. In addition over the years, there has been a significant increase in transfers from the government such as for employment guarantee and food security, national housing scheme, Swachchh Bharat Abhiyan, Ujjawala Yojana, Pradhan Mantri Kisan Samman Nidhi, periodic loan waivers, etc.
Answer: (A) A, C and D only
Explanation
Which one of the following does NOT fall in the category of government transfer?
The objectives of public finance are to ensure macroeconomic stability, achieve the desired state of distribution, provide public services to accelerate growth and development. Fiscal policy has both macro and microeconomic aspects. Further, the objectives include allocating resources for the provision of public services. The important point is that ensuring security and protection of property rights is a basic public good and this can be provided only by the government. The governments have the task of distributing incomes and alleviating poverty. After the Great Depression and influenced by Keynesian economics, public spending was assigned a central role.
Thus, the role of public finance is inextricably linked to the role of the state. From merely ensuring safety, security and property rights, governments have expanded their activities to providing a variety of public services with externalities. The expansion has been a subject matter of debate. Musgrave considers that the expansion of the public sector has been a necessary and constructive development and strong public sector is needed along with the capitalist market. In contrast, Buchanan argues that dispute arises when the state expands to areas beyond the realm of boundaries of the protective state into a productive or tax-transfer state. In India, state intervention through public finance policy has to play an important role besides ensuring the safety and security of people and their property rights. These include the need to overcome large social and physical infrastructure deficit, provide correctives to missing and imperfect markets, introduce measures to reduce acute inequalities and poverty and provide correctives to widespread information asymmetry. Interventions are needed also to provide externalities in terms of market development, irrigation, storage and price support in agriculture to deal with market imperfections and supply volatility. Similarly, generalized externalities have to be ensured for the manufacturing and service sectors through competitive levels of infrastructure. India's public finance policies have enabled the government to play a catalytic role in the development of the economy as a whole. In addition over the years, there has been a significant increase in transfers from the government such as for employment guarantee and food security, national housing scheme, Swachchh Bharat Abhiyan, Ujjawala Yojana, Pradhan Mantri Kisan Samman Nidhi, periodic loan waivers, etc.
Answer: (D) Education
Explanation
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