Test Preparation on UGC NET Economics Practice Set-4
1.
Slutsky's decomposition of price effect is notpossible without a prior knowledge of whichone of the following?
2.
Consider the following statements:Market failure refers to a situation in which1. true benefit of output may not reflect pricebecause of externalities.2. price may not reflect marginal cost becauseof market imperfections.3. there is disequilibrium in demand andsupply.Which of the statements given above is/arecorrect?
3.
Match List-I (Economic term) with List-II(Applicability of the term) and select the correctanswer using the code given below the lists:
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4.
Which one of the following is the correctstatement?Consumer surplus is largest in
5.
What does the Coase?s theorem deal with?
6.
Consider the following statements regardingPareto-optimality in consumption (twocommodities and two individuals case)1. Each point in the Edgeworth Box, in thiscase, specifies six variables.2. Each point on the contract curve representsa Pareto-optimal distribution.3. Each point on the contract curve depicts asituation of general equilibrium inconsumption.Which of the statements given above arecorrect?
7.
Which one of the following is the correctstatement?The demand for labour is a derived demandbecause it depends on
8.
Consider the following statements regardingdetermination of factor prices:1. The mechanism of determination of factorprices does not differ fundamentally fromthat of prices of commodities.2. Factor prices are determined by the forcesof demand and supply.3. The difference lies in the determinants ofthe demand and supply of productiveresources.Which of the statements given above arecorrect?
9.
Which of the following are the characteristicsof the kinked demand curve?1. Equilibrium is defined by the point of kink.2. Price rigidity under oligopoly.3. The upper portion of the kinked demandcurve is highly elastic.4. To the point right of kink, marginal cost islarger than marginal revenue.Select the correct answer using the code givenbelow:
10.
Which one of the following is the correctstatement?Given two parallel straight-line demand curves,the price-elasticity of demand in case of eachcurve is equal
11.
Which one of the following is the correctstatement?In the case of Giffen goods
12.
Consider the following statements:1. Cross elasticity of demand for petrol withrespect to price of diesel is close to zeroin the short-run but it may increase inthe long run if the price differentialbetween these two products remains highfor long.2. Cross elasticity of demand of X with respectto Y would be negative if X and Y aresubstitutes.3. Cross elasticity of demand of X withrespect to Y would be positive if X and Yare complements.4. Cross elasticity of demand of X with respectto Y would be close to zero if X and Y areunrelated products.Which of the statements given above arecorrect?
13.
Which one of the following is not the basicassumption of indifference curve approach ofconsumer theory?
14.
Suppose a consumer is consuming twosomewhat substitutable goods X and Y and theprice of X increases. What is the nature ofconsumer's demand for X if he decreases hisexpenditure on X?
15.
In the Cobb-Douglas production function of theform, X = b0, Lbi, kb2, which one of the followingis correct? (X = output, L = labour and K =capital)
16.
Match List-I (Type of Isoquant) with List-II(Factor Substitutability) and select thecorrect answer using the code given belowthe lists:
17.
Which one of the following is represented by arectangular Hyperbola?
18.
Consider the following statements:1. Explicit and implicit costs are not includedin opportunity cost.2. Explicit and implicit costs are included inopportunity cost.3. The economic costs include both explicitand implicit costs.4. The imputed value of the entrepreneur?sown resources and services is called explicitcosts.Which of the statements given above arecorrect?
19.
Which one of the following statements iscorrect?
20.
Which one of the following is represented bythe diagram given above (where, L = labour, K =capital, X = output)?
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