ECONOMICS---UGC NET--

1.The difference between total revenue and total expenditure is called :
(A) Capital deficit 
(B) Revenue deficit
(C) Fiscal deficit 
(D) Budgetary deficit

2. Borrowings from foreigners are known as :
(A) Export of goods 
(B) Unrequited receipts
(C) Capital receipts 
(D) Current receipts

3. Quantitative restrictions on imports by a country will lead to :
(A) Decreased demand for imported products
(B) Increased demand for imported products
(C) Increased supply of imported products
(D) Decreased supply of imported products
4. As per the UNDP's Global Human Development Report 2007, India's relative rankingout of 177 countries in respect of HDI was :
(A) 123 
(B) 131 
(C) 128 
(D) 125
Consider the following statements and select the correct answer from the codes given below for questions 5 to 10(Assertion and Reasoning type item).
5. Assertion (A) : Under oligopoly, all firms are aware of their inter-dependence.Reason (R) : Personal rivalries do not exist among firms under oligopoly.
(A) Both (A) and (R) are false
(B) Both (A) and (R) are true but (R) is not the explanation of (A)
(C) (A) is true, but (R) is false
(D) (A) is false, but (R) is true

6. Assertion (A) : Giffen goods have a positively sloped demand curve.
Reason (R) : The positive substitution effect in their case is more than offset by negative income effect.
(A) Both (A) and (R) are true and (R) is the correct explanation of (A)
(B) (A) is true, but (R) is false
(C) Both (A) and (R) are false
(D) Both (A) and (R) are true, but (R) is not the correct explanation of (A)

7. Assertion (A) : According to Hicks, trade cycle occurs due to the interaction between
multiplier, and accelerator. Reason (R) : In Hicksian business cycle theory, accelerator is impotent in the depression phase.
(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) Both (A) and (R) are false
(D) (A) is true, but (R) is false

8. Assertion (A) : Duesenberry hypothesised that consumption - income relationship is
irreversible.
Reason (R) : Consumption depends not only on current income but also on previous peak income.
(A) Both (A) and (R) are true, but (R) is not the correct explanation of (A)
(B) Both (A) and (R) are true, and (R) is the correct explanation of (A)
(C) (A) is true, but (R) is false
(D) Both (A) and (R) are false

9. Assertion (A) : Backwash effects imply an unfavourable situation arising in
underdeveloped countries. Reason (R) : Undue emphasis on exports of raw-materials at the expense of the growth of domestic manufacturing.
(A) (A) is true, but (R) is false
(B) Both (A) and (R) are false
(C) Both (A) and (R) are true and (R) is the correct explanation of (A)
(D) Both (A) and (R) are true, but (R) is not the correct explanation of (A)
10. Assertion (A) : Low levels of labour productivity exist in underdeveloped countries.Reason (R) : It is due to the lack of physical capital.
(A) Both (A) and (R) are false
(B) (A) is true, but (R) is false
(C) Both (A) and (R) are true and (R) is the correct explanation of (A)
(D) Both (A) and (R) are true, but (R) is not the correct explanation of (A)


answers are:
1.Budgetary deficit
2. Capital receipts
3. Decreased supply of imported products
4. 128
5. (A) is true, but (R) is false
6.Both (A) and (R) are true and (R) is the correct explanation of (A)
7.Both (A) and (R) are true, but (R) is not the correct explanation of (A)
8. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
9.Both (A) and (R) are true and (R) is the correct explanation of (A)
10. (A) is true, but (R) is false.