Here I am giving you question paper for UGC National Eligibility Test economics paper 2 in PDF file attached with it so you can get it easily.

1. The cost incurred by the firm in
hiring labour is called as
(A) Explicit Cost
(B) Implicit Cost
(C) Marginal Cost
(D) Total Cost
2. The locus of Pareto Optimality in
Production and Consumption is given by
(A) The Social Welfare Function
(B) The Utility Possibility Curve
(C) The Transformation Curve
(D) The Grand Utility Possibility
Curve
3. List – I List – II
a. Tea and
Coffee
1. Veblen goods
b. Car and
Petrol
2. Substitutes
c. Gold and
Diamonds
3. Giffen goods
d. Ragi and
Bajra
4. Complementary
Codes :
a b c d
(A) 2 1 3 4
(B) 2 4 1 3
(C) 4 1 2 3
(D) 4 3 1 2
4. Assertion (A) : In the short run
under perfect competition,
given the market demand and
market supply the industry is in
equilibrium at that price which
clears the market.
Reason (R) : In the long run all the
firms in the industry earn profit.
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 true, but (R) is false.
(D) (A) is false, but (R) is true.
5. Put the following in chronological
order on the basis of development :
i. Law of Demand
ii. Revealed Preference Analysis
iii. Indifference Curve Analysis
iv. Law of Diminishing Marginal
Utility
(A) i iii ii iv
(B) i iv iii ii
(C) i ii iv iii
(D) i iii iv ii
6. If the monopolist incurs loss in the
short run, then in the long run
a. he will go out of business
b. he will stay in business
c. he will break even
d. any of the above is possible
(A) a and b (B) a and c
(C) a only (D) d only
7. The condition of Pareto Optimality
holds correct under
(A) Perfect Competition
(B) Monopolistic Competition
(C) Oligopoly
(D) Monopoly
8. Assertion (A) : Compared to the
individual supply curve, the
aggregate supply curve is more
elastic.
Reason (R) : There is the
possibility of moving between
being out of the labour force and
being in the labour force.
Choose amongst the following the
correct answer.
Codes :
(A) (A) is correct, but (R) is not the
correct explanation of (A).
(B) (A) is correct and (R) is the
correct explanation of (A).
(C) (A) is correct, but (R) is
incorrect.
(D) (A) is incorrect, but (R) is
correct.

9. Assuming life cycle hypothesis, let a
person starts working when he is 20
years old, works until the age of 60
and expects to die at the age of 70. If
this person earns, say ` 1.50 lac
annually when he is 20-30 years, ` 2
lac annually when he is 30-45 years,
and ` 3 lac annually when he is 40-
60 years, then his life time average
propensity to consume is
(A) 0.60
(B) 0.70
(C) 0.80
(D) 0.90
10. With reference to demand for money,
match List – I with List – II :
List – I List – II
a. Demand for
money is stable
1. J.M.
Keynes
b. Liquidity
Preference as
behaviour
towards risk
2. W.
Baumol
c. Inventory
Theoretic
Approach
3. James
Tobin
d. No portfolio
diversification
4. Milton
Friedman
Codes :
a b c d
(A) 4 3 1 2
(B) 3 4 1 2
(C) 2 1 3 4
(D) 4 3 2 1
11. The negative relationship between
the gap between actual GDP and its
trend value and the difference
between actual unemployment rate
and its equilibrium value is called
(A) The Aggregate Supply Curve
(B) The Phillips Curve
(C) The Natural Rate of
Unemployment Hypothesis
(D) Okun’s Law
12. It is often true that as the economy
begins to recover from a recession,
the unemployment rate rises because
(A) as the economy initially
recovers from a recession the
demand for goods and services
falls, so the demand for
workers falls.
(B) as the economy begins to
recover from a recession,
workers who were previously
discouraged about their
chances of finding a job begin
to look for work again.
(C) as the economy begins to
recover from a recession
because of the errors in the way
the data are collected.
(D) as the economy initially
recovers from a recession,
firms do not immediately
increase the number of workers
they hire. Firms wait to hire
more individuals until they are
convinced that the recovery is
strong.

13. When additional government
expenditure is financed by selling
government securities, then what will
be the nature of crowding out effect,
given in List – I in the context of the
situation given in List – II ?
List – I
Crowding out
effect
List – II
Situation
a. Full 1. Keynesian
Range
b. Partial 2. Classical
Range
c. Nil 3. Intermediate
Range
Codes :
a b c
(A) 2 3 1
(B) 3 1 2
(C) 1 3 2
(D) 1 2 3
14. Match items given in List – I with
those in List – II :
List – I List – II
a. Equation of
Exchange
1. J.M.
Keynes
b. Cash Balances
Approach
2. Irving
Fisher
c. Regressive
Expectation
model of
Demand for
Money
3. W.J.
Baumol
d. Square Root
Formula of
Demand for
Money
4. A.C.
Pigou
and
Alfred
Marshall
Codes :
a b c d
(A) 2 4 1 3
(B) 3 2 4 1
(C) 4 3 1 2
(D) 1 3 2 4
15. The premise, that benefit of
economic growth will reach all
sections of population is called
(A) Trickle up effect
(B) Trickle down effect
(C) Take-off effect
(D) Backlash effect
16. In whose growth model,
entrepreneur’s significance is pivotal ?
(A) Keynes
(B) Schumpeter
(C) Harrod
(D) Domar
17. The classical model of economic
development emphasises
(A) Laissez-Faire Policy
(B) Capital Accumulation
(C) Both (A) and (B)
(D) None of these
18. Which one of the following pairs is
not correctly matched ?
Author Book
(A) Simon
Kuznets
Asian Drama
(B) J. Robinson Essays in the
Theory of
Economic
Growth
(C) Karl Marx Das Kapital
(D) A.W. Lewis Theory of
Economic
Growth
19. What does change in economic
growth ?
(A) Structure of economy
(B) Mindsets of people
(C) National Income
(D) None of these

20. Which States/U.Ts. have been placed
at first three places in Gender
Development Index List 2006 made
by the Government of India ?
(A) Kerala, Chandigarh, Goa
(B) Kerala, Goa, Chandigarh
(C) Chandigarh, Goa, Kerala
(D) Goa, Kerala, Chandigarh
21. Assertion (A) : There is no incentive
for a profit maximizing
producer to supply the public
goods.
Reason (R) : If he produces it he
is unable to exclude people
from consuming it and hence
he cannot charge a price.
Codes :
(A) (A) is true, but (R) is false.
(B) Both (A) and (R) are false.
(C) (A) is not correct, but (R) is
correct
(D) Both (A) and (R) are correct
and (R) is the correct
explanation of (A).
22. The distribution of the burden of
paying a tax is called
(A) Sharing of tax burden
(B) Shifting of the tax
(C) Incidence of a tax
(D) Tax capitalization
23. Which one of the following is short
period debt meant to meet current
needs, that is filling temporary gap in
budgets ?
(A) Funded debt
(B) Unfunded debt
(C) Redeemable debt
(D) Irredeemable debt
24. Monetised deficit means
(A) Fiscal deficit less interest
payments
(B) Government expenditure which
is financed through the sale of
adhoc treasury bills.
(C) Increase in RBI credit to
Central Government.
(D) Fiscal deficit less loans and
advances.
25. A proportionate increase in tax
revenue to a proportionate increase in
the tax base is called
(A) Elasticity of a tax
(B) Buoyancy of a tax
(C) Neutrality of a tax
(D) None of the above
26. ‘Vent for surplus approach’ is
applicable to
(A) Rich countries
(B) Underdeveloped countries
(C) Oil exporting countries
(D) None of the above
27. According to monetary approach, a
revaluation of a nation’s currency
(A) increases the nation’s demand
for money.
(B) increases the nation’s supply of
money
(C) reduces the nation’s demand
for money
(D) reduces the nation’s supply of
money

28. The Bretton Woods System was
based on
(A) a gold standard
(B) a flexible exchange rate system
(C) a gold exchange standard
(D) none of the above
29. The imposition of an import tariff by
a large nation
(A) usually improves the nation’s
terms of trade and increases the
volume of trade.
(B) worsens the nation’s terms of
trade but increases the volume
of trade
(C) worsens the nation’s terms of
trade and reduces the volume
of trade.
(D) usually improves the nation’s
terms of trade but reduces the
volume of trade.
30. The value of foreign trade multiplier
will be high under the condition when
(A) marginal propensity to save is high
(B) marginal propensity to import
is high
(C) there is increase in exports
(D) marginal propensity to consume
domestic goods is high
31. Match the weight of different industry
groups between List-I & List-II :
List – I List – II
a. Basic goods
industries
1. 45.7
b. Capital goods
industries
2. 8.8
c. Intermediate
goods industries
3. 15.7
d. Consumer goods
industries
4. 29.8
Codes :
a b c d
(A) 1 2 3 4
(B) 2 4 3 1
(C) 3 2 1 4
(D) 1 3 4 2
32. Plant load factor of thermal power
stations in India in recent years has
been around
(A) 50 percent
(B) 60 percent
(C) 70 percent
(D) 80 percent
33. Which of the following is not the part
of National Telecom Policy (NTP)
2012 in India ?
(A) Strive to create One-Nation-
One License across services
and service areas.
(B) Achieve One Nation – Full
Mobile number portability
(C) To work towards ‘Right to
Broadband’
(D) Recognize telecom as basic
goods industry
34. Percentage share of the
manufacturing output of India in the
world total is now
(A) 2.2 percent
(B) 3.9 percent
(C) 6.2 percent
(D) 7.5 percent
35. India’s current account deficit in
Balance of Trade is mainly due to
(a) Increasing imports of oil and
petroleum
(b) Increasing imports of gold and
silver
(c) Increasing imports of food
grains
(d) Increasing imports of iron and
steel
Codes :
(A) (a), (b) and (c)
(B) (a) and (c)
(C) (a) and (b)
(D) (a) and (d)

36. The MRTP Act of 1969 has been
(A) replaced by Competition Act
2002
(B) merged in Industrial Policy Act
of 1978
(C) replaced by Trade Union
(Amendment) Act 2001
(D) merged in Industrial Policy Act
of 1991
37. In the context of agricultural
development the trickle down theory
has been interpreted to suggest that
a. Growth in agriculture output
without radical institutional
reforms will reduce the
incidence of poverty.
b. Growth in agriculture output
with radical institutional
reforms will reduce the
incidence of poverty
c. Only radical institutional
reforms can reduce the
incidence of poverty.
d. Only growth in agriculture
output will reduce incidence of
poverty.
(A) Both a and b
(B) Both a and c
(C) b only
(D) d only
38. As per the latest figures of the
Ministry of Agriculture the per capita
per day foodgrains availability is
(A) 280 gm
(B) 440 gm
(C) 580 gm
(D) 900 gm
39. In which year the Kissan Credit Card
System was introduced ?
(A) 1978
(B) 1998
(C) 1988
(D) 2008
40. Assertion (A) : PL-480 grants was
used to import foodgrains.
Reason (R) : PL-480 grants
facility was granted by Japan.
Codes :
(A) Both (A) and (R) are true and
(R) is the correct explanation of
(A).
(B) Both (A) and (R) are true and
(R) is not the correct
explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
41. Productivity of groundnut is highest
in
(A) U.S.A.
(B) Mexico
(C) India
(D) China
42. NAFED is a
(A) Company
(B) Non-Government Organisation
(C) Government Body
(D) Cooperative Organisation
43. Based on the SRS data for 2010 in
India, which of the following seems
to be incorrect ?
(A) TFR = 2.5
(B) CDR = 7.2
(C) IMR = 48.9
(D) CBR = 24.2

44. Upto which census, synchronous de
facto method was adopted in India
wherein the census was conducted
throughout the country in a single
night ?
(A) 1901 (B) 1931
(C) 1951 (D) 1971
45. Match the following :
Group – I Group – II
a. Type II error 1. P01 × P10 = 1
b. Mean > Mode 2. Probability
of not
rejecting H0
when it was
not true
c. Population is
homogenous
3. Positively
skewed
distribution
d. Time Reversal
Test
4. Simple
random
sampling
Codes :
a b c d
(A) 2 3 4 1
(B) 3 1 2 4
(C) 4 2 3 1
(D) 1 2 3 4
46. Assertion (A) : For normal
distribution Mean = Median =
Mode.
Reason (R) : Normal distribution
is mesokurtic.
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.
47. Given the two regression lines
estimated from given data as under :
Y = 4 + 0.4X
X = –2 + 0.9Y
Then coefficient of correlation
between X and Y will be
(A) 0.4
(B) 0.5
(C) 0.6
(D) 0.8
48. Which of the following satisfy time
reversal test but not factor reversal
test ?
(A) Laspeyre’s Index No.
(B) Fisher’s Index No.
(C) Paasche’s Index No.
(D) Marshall-Edgeworth Index No.
49. The value of χ2 in a 3 × 5
contingency table is computed as 8.0.
The Null hypothesis of no
association will be tested at 5% level
of significance, if this value is less
than or equal to the value of χ2 from
the table at degrees of freedom :
(A) 8
(B) 6
(C) 4
(D) 3
50. Which is a non-probability based
sampling method ?
(A) Systematic Sampling
(B) Stratified Random Sampling
(C) Quota Sampling
(D) Simple Random Sampling

Attached Files

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