NTA UGC NET/JRF Exam, Dec. 2021/June 2022 Economics

Total Questions: 100

31. What will be the aggregate Domestic Income NDP (FC) of the economy for 2022.23: if

GDP (Market Price) = 27.654 Crores
Depreciation = 2847 crores
Indirect taxes less subsides = 2160 crores

(a) 24,807
(b) 22,647
(c) 26,967
(d) 28,467

Correct Answer: (b) 22,647

Solution:

NDP(ᶠᶜ) = GDPₘₚ - Depreciation - NIT
= 27654 - 2847 - 2160
= 22,647

32. The "tequila effect" indicates:

(a) The spread of the 1994-95 Mexican crisis to other countries in Latin America
(b) The spread of the 1997 crisis in Thailand to other countries in Asia
(c) The suprime crisis emerged in 2007 in the United State
(d) The domestic debt crisis occurred in Argentina in 1989

Correct Answer: (a) The spread of the 1994-95 Mexican crisis to other countries in Latin America

Solution:

The Tequilla effect is that hypothesis, which states about the economic risis which affected the several South American countries in year 1955 which was caused by an exogenous capital flight Mexican Peso in December 1994.

The "tequilla effect" indicates the spread of the 1994-95 Mexican crisis to other countries in 'Latin America'.

33. Arrange the countries based on descending order of Human Development Index Value in 2019.

A. Norway
B. Bangladesh
C. India
D. China
E. Nepal
Choose the correct answer from the options given below:

(a) A, D, C, B, E
(b) D, A, B, E, C
(c) A, D, B, C, E
(d) A, D, B, E, C

Correct Answer: (a) A, D, C, B, E

Solution:

Countries based on descending order of Human Develoment Index Value in 2019-
1) Norway
2) China
3) India
4) Bangladesh
5) Nepal
Notes :-
HDI and India -

India ranks 134 out of 193 countries and territories on the HDI in year 2023-24. India's HDI value is 0.644.

Switzerland had the highest HDI in 2022 with a value of 0.967.

34. Below are some of the features of the Micro, Small and Medium enterprises (MSMEs) in India.

A. Revised definition of the MSMEs was brought in July 2020
B. In this definition turnover limit varied between service and manufacturing enterprises
C. In the revised definition turnover limit for small enterprises was Rs. 50 crore
D. In this revised definition, investment limit in plant and machinery or equipment for medium enterprises was Rs.50 crore
E. In the revised definition, investment limit for plant and machinery or equipment for medium enterprises was Rs. 5 crore

Choose the correct answer from the options given below:

(a) A, D and E only
(b) A, C and D only
(c) Dand E only
(d) A, B and D only

Correct Answer: (b) A, C and D only

Solution:

Some of the features of the Micro, small and medium enterprises (MSMEs) in India 1) Revised definition of MSMEs was brought in July 2020.
2) In the revised definition turnover limit for small enterprises was Rs. 50 crore.
3) In this revised definition, investment limit in plant and machinary or equipment for medium enterprises was Rs. 50 crore.

35. Integrate:

Correct Answer: (c)

Solution:

36. Net migration refers to

(a) Overall level of population change resulting from total migrants and emigrants
(b) is the difference between the number of immigrant workers and the number of emigrant workers
(c) Does not include refugees and other lawful migrants
(d) includes refugees only

Correct Answer: (a) Overall level of population change resulting from total migrants and emigrants

Solution:

Net migration refers to overall level of population change resulting from total migrants and emigrants.
Important points :-

Net migration is the difference between the number of persons who enter a territory (immigrants) and the number who leave (emigrants) including citizens and nocitizens.

Net migration is the number of immigrants minus the number of emigrants, including citizens and nocitizens.

37. Which of the followings are correct?

(A) M₁ = C + DD + OD
(B) M₂ = M₁ + saving deposits with post office saving banks
(C) M₃ = M₂ + net time deposits of banks
(D) M₃ = M₁ + net time deposits of banks
(E) M₄ = M₁ + total deposits with the post office savings
Choose the correct answer from the options given below:

(a) A, B and C only
(b) A, B and D only
(c) A, C and D only
(d) B, D and E only

Correct Answer: (b) A, B and D only

Solution:

(1) M₁ = C + DD + OD
(2) M₂ = M₁ + Saving deposits with post office savin. banks.
(3) M₃ = M₁ + net time deposits of bank.
(4) M₄ = M₃+total deposits with the post office savings.
Note - RBI mostly relies on M3 measure for determine money supply.

38. Primary deficit is given by_______

(a) Fiscal deficit - Interest payments
(b) Revenue deficit - Interest payments
(c) Budget deficit - Interest payments
(d) Revernue Receipt - Revenue Expenditure

Correct Answer: (a) Fiscal deficit - Interest payments

Solution:

Primary deficit is given by
Fiscal deficit - Internet Payment
Important Point
1. Revenue deficit = revenue expenditure -revenue receipts
2. Capital deficit = Capital exp - Capital receipts
3. Budget deficit = Capital deficit + revenue deficit or (Total exp - total revenue)
4. Fiscal deficit = total exp - total receipts other than borrowing.
FD = TE > TR other than borrowing.
FD = TE - RR + Recoveries of loans.
5. Primary deficit = Fiscal deficit - Interest payment
6. Net primary deficit = net fiscal deficit - net interest payment
7. Net fiscal deficit = fiscal deficit – loan and advances
8. Effective revenue deficit = revenue deficit - grant for creation of capital asset
9. Monetized deficit = increase in RBI credit to govt.

39. Match list I with and list II:

List-I	List-II
A. Pure Public good	I. Non-rival but excludable
B. Pure Private good	II. Non-excludable but rivalry
C. Open access resources	III. Non rival and non-excludable
D. congestible resource	IV. Excludable and rival

Choose the correst answer from the options given below:

Option	A	B	C	D
(a)	III	IV	I	II
(c)	I	II	III	IV
(b)	III	IV	II	I
(d)	III	II	I	IV

Correct Answer: (b)

Solution:

The correct match is as follows -


Pure Public goods	-	Non-rival and non-excludable
Pure Private good	-	Excludable and rival
Open access resources	-	Non excludable but rivalry
Congestible resource	-	Non rival but excludable