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

Total Questions: 100

41. Which of the following is correct?

A. The gross barter terms of trade uses quantity index for imports and exports
B. Both gross barter terms of trade and net barter terms of trade make use of the price index for imports and exports
C. The net barter terms of trade uses price index for imports and export
D. Both gross barter terms of trade and net barter terms of trade make use of the quantity index for imports and exports
E. The gross barter terms of trade uses price index but the net barter terms of trade uses quantity index for imports and exports
Choose the correct answer from the options given below:

Correct Answer: (d) A and C only
Solution:

The correct statements are :
(A) The gross barter terms of trade uses quantity index for imports and exports.
(C) The net barter terms of trade uses price index for imports and exports.

42. In which year, Gross Domestic saving rate was the highest?

Correct Answer: (b) 2007-08
Solution:

(1) Gross Domestic savings (% of GDP)- India in 2004-05 was 31.2%.
(2) Gross domestic savings (% of GDP)- India in 2007-08 was 34.4%.
(3) Gross domestic savings (% of GDP)- India in 2011-12 was 32.3%.
(4) Gross domestic savings (% of GDP) - India in 2016-17 was 30.4%.

43. Given below are two statements:

Statement I: If you bought a product which now becomes subject to tax, you will be in a better position to avoid the tax and the seller bears with a larger part if your demand is elastic while seller's supply is inelastic.
Statement II: A tax on salt is likely to be borne by the consumer.
In the light of the above statements, choose the most appropriate answer from the options given below:

Correct Answer: (a) Both statement I and statement II are correct
Solution:

(1) Yes, statement I is correct Important Points:
→ Elasticity of the demand for commodity.

The more will be the elastic of demand, the more will bne the burdent of tax upon sellar. Because an increase in price due to taxes will make demand of the commodity zero.
Opposite -

When demand for the commodity is perfectly inelastic. The entire tax burden passed on the buyer.

Notes:- Elasticity of the supply of commodity.
The more elastic supply of the commodity, the more will be the burden of taxes on the buyer.
Because seller has many buyers and markets to sell its commodity.

Opposite
Less elastic of supply, more burden of taxes on seller.
(2) Yes, tax on salt is likely to be borne by the consumer.

44. Match List I with List II :

List I (Concepts)List II (Associations)
A. The greatest good for the greater numberI. Learner's index
B. stability of general equilibriumII. Bentham's criterion
C. degree of monopoly powerIII. Tatonnement
D. third degree price-discriminationIV. Pigou

Choose the correct answer from the options given below:

OptionABCD
(a)IVIIIIII
(c)IIIIIIIV
(b)IVIIIIII
(d)IIIIIIIV
Correct Answer: (d)
Solution:
List I (Concepts)List II (Associations)
The greatest good for the greater numberBentham's Criterion
stability of general equilibriumTatonnement
degree of monopoly powerLearner's index
third degree price-discriminationPigou

45. Given below are two statements:

Statement I: Taking advantage of the increased demand for staples during the COVID-19 pandemic, India's agricultural exports continued to do well in 2021-22.

Statement II: Like in the year 2020-21, segments like marine products, buffalo meat, tea, coffee and dairy products continued to perform poorly in terms of exports from India in 2021-22.

In the light of the above statements, choose the correct answer from the options given below:

Correct Answer: (c) Statement I is true but statement II is false
Solution:

Yes, taking advantage of the increased demand for staples during the COVID-19 Pandemic India's agricultural experts continued to do will in 2021- 22.

46. The hypothesis of cumulative causation as an explanation of the backwardness of developing nations is associated with

Correct Answer: (b) Gunnar Myrdal
Solution:

Cumulative causation theory is a theory that explains how factors change cyclically and cumulatively through reciprocal reinforcement. It is used to explain the persistence of international migration flows. The theory was originated by Swedish economist Gunnar Myrdal.

47. The Central bank policy of altering the domestic credit extended by it in an equal and opposite direction to the variation in foreign exchange reserves so that the monetary base remains unchanged is called

Correct Answer: (d) Sterilisation
Solution:

Sterilization is a form of monetary action in which a central bank seeks to limit the effect of inflows and outflows of capital on the money supply. Sterilization most frequently involves the purchase or sale of financial assets by a central bank and is designed to offset the effect of foreign exchange intervention.

48. Match List I with List II :

List IList II
A. Reverse repor rateI. RBI provides loan to commercial banks for short term
B. Bank rateII. RBI provides loan to commercial banks for long term
C. Repo rateIII. RBI borrows money from commercial banks
D. Cash reserve ratioIV. Commercial banks have to deposit minimum ratio of their net total liabilities in RBI

Choose the correct answer from the options given below:

OptionABCD
(a)IIIIIIIV
(c)IIIIIIIV
(b)IIIIIIIV
(d)IIIIIIIV
Correct Answer: (b)
Solution:

The correct match is as follows -

List IList II
A. Reverse repor rateRBI borrows money from commercial banks
B. Bank rateRBI provides loan to commercial banks for long term
C. Repo rateRBI borrows money from commercial banks short term
D. Cash reserve ratioCommercial banks have to deposit minimum ratio of their net total liabilities in RBI.

49. Which of the followings were the part of FDI policy reforms and other measures during the Covid-19 pandemic period?

A. 100 percent FDI in the health sector
(B) Permitting foreign investment upto 100 percent under automatic route in Telecom service sector
(C) "FDI monitoring cell" has been formed to expedite FDI proposals
(D) Raised the FDI limit from 49 percent to 74 percent in insurance companies under the automatic route
(E) Reduced the limit of FDI in the defence sector to realize the vision of Atmanirbhar Bharat
Choose the correct answer from the options given below:

Correct Answer: (c) B. Cand D only
Solution:

The part of FDI Policy reforms and other measures during the Covid-19 pandemic period.
1) Permitting foreign investment upto 100 percent under automatic route in Telecom services sector.
2) "FDI monitoring cell" has been formed to expedite FDI proposals.
3) Raised the FDI limit from 49 percent to 74 percent in insurance companies under the automatic route.

50. Match List I with List II:

List IList II
A. Size matters in international tradeI. Paul Krugman
B. Economies of scale and monopolistic competition in international tradeII. Mercantilists
C. Technological gap theory of tradeIII. M. V. Posner
D. Zero sum game of tradeIV. The gravity model

Choose the correct answer from the options given below:

ABCD
(a)IVIIIIII
(b)IVIIIIII
(c)IIIIIVII
(d)IIIIVIII
Correct Answer: (b)
Solution:
List IList II
A. Size matters in international tradeThe gravity model
B. Economies of scale and monopolistic competition in international tradePaul Krugman
C. Technological gap theory of tradeM.V. Posner
D. Zero sum game of tradeMercantilists