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

Total Questions: 100

81. Match 'Labour Force' with the appropriate item from among the following:

Correct Answer: (b) Employed + unemployed
Solution:

The labour force is the total number of people who are either employed or looking for work:
(1) Employed :
People who work for pay or profit for at least one hour a week, or who have a job but are temporarily not at work.
(2) Unemployed :
People who are without work but actively seeking employment and currently available to start work.

82. Two factors of production, say A and B have the same price. The least cost combination of A and B for producing given level of output will be achieved at a point where the Iso-quant has slope equal to

Correct Answer: (c) -1
Solution:

An isoquant curve is that curve which shows the possible combinations of the two variable factors that can be used to produce the same total product.

The word isoquant comes from the Greek word iso meaning equal and quant, meaning quantity.

83. The binomial distribution can be used under the following conditions

A. n the number of trials is finite and independent
B. n the number of trials is infinite and independent
C. Each trial results in two mutually exclusive and exhaustive outcomes, terms as success and failure
D. P, the probability of success is constant for each trial
E. The probability of failure does not remain same for each trial
Choose the correct answer from the options given below:

Correct Answer: (c) A, C, and D only
Solution:

The binomial distribution is a probability model that assumes the following conditions :-
Fixed number of trials : there is a set number of experiments or trials n.
Two outcomes: Each trial has exactly two possible outcomes, usually called "success" or "failure".
Constant probability of success : the probability of success, p, is the same for each trial.
Independent trials : the outcome of each trial is independent of the outcomes of the other trials.
The probability of failure is 1-p, which is sometimes denoted as q.

84. The change in welfare due to change in environmental quality is measured by

Correct Answer: (c) Marginal Willingness to Pay (WTP) function
Solution:

The change in welfare due to change in environmental quality is measured by Marginal Willingness to Pay (WTP) function.
WTP is a maximum amount of money the people are willing to pay for a situation where they gain a positive change.

85. The provision for social goods, or the process by which total resource use is divided between private and social goods and by which the mix of social goods is choosen is known as_______

Correct Answer: (a) Allocation function
Solution:

Allocation function is a central component of systems engineering and its main aim is to provide a rational means of determining which system level functions should be carried out by humans and which by machines. Such allocation, it is assumed, can take place early in design life cycle.

86. Which of the following properties of matrix are correct?

A. (A')' = A
B. The rank of an nxn nonsingular matrix A must be less than n
C. (AB)' = B'A'
D. (A + B)ⁿ = Aⁿ + Bⁿ
E. (A')⁻¹ = (A⁻¹)
Choose the correct answer from the options given below:

Correct Answer: (c) A, C and D only
Solution:

87. What does the result of the first empirical test of the Heckscher Ohlin model by Wassily Leontief find?

Correct Answer: (a) U.S. exports were less capital-intensive than U.S. imports
Solution:

U.S. exports were less capital intensive than US imports is the result of the first empirical test of heckscher-Ohlin model by Wassily Leontief.

Important Point -
In 1954, an econometric test by Wassily W. Leontief of the H-O model found that the United States, despite having a relative abundance of capital, tended to export labor - intensive goods and import capital - intensive goods. This problem became known as the Leontief Paradox.

88. Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R

Assertion A : The Endogenous growth theory examines production function that shows increasing returns.

Reason R : Increasing returns in Endogenous growth theory is due to specialization and investment in knowledge capital and learning by doing.

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

Correct Answer: (a) Both A and R are correct and R is the correct explanation of A
Solution:

Yes, Endogenous growth theory examines production function that shows increasing returns. The simplest version of endogenous model is AK model which assumes constant exogenous saving rate and fixed level of technology.

The stickiest assumption of this model is that production function not include diminishing returns to capital.
This theory assume increasing return to scale.
Yes, the increasing returns in endogenous growth theory is due to specialization and investment in knowledge capital and learning by doing.

89. Here is given weights of items under use based classification of industrial production index of India (Base 2011-12)

A. Primary goods 34.05%
B. Capital goods 12.22%
C. Intermediate goods 17.22%
D. Infrastructure/Construction goods 12.34%
E. Consumer goods 24.17%
Choose the correct anser from the options given below:

Correct Answer: (c) A, C and D only
Solution:

Weights of the different sector under the used based classification 2011-12 series.

S.No.SectorNumber of groupsWeights
1.Primary Goods1534.05
2.Capital Goods678.22
3.Intermediate Goods11017.22
4.Infrastructure/construction goods2912.34
5.Consumer durables8612.84
6.Consumer non durables10015.33
Total407100

90. In Harrod.Domar Model, if the growth rate of income is 8% and the capital output ratio is 4% then the saving rate must be

Correct Answer: (a) 32%
Solution:

• Growth rate = 8% (given) of income
• Capital output ratio = 4% (given)
• Saving rate = ? (find)
growth of income = saving rate/Capital outpu
8% = saving rate/4
saving rate = 8×4
= 32%