UGC-NET 2023 question paper

All 100 questions from the UGC-NET 2023 UGC NET Economics (Paper II) paper. Open any question for the worked solution.

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1. Q1The expert committee set up by RBI in 2013 to revise and strengthen the monetary policy framework in India was chaired by:
2. Q2Under the flexible inflation targeting framework of monetary policy adopted by the RBI in 2016, what is the target range of the rate of inflation?
3. Q3In a regression of a dependent variable on an intercept and k other independent variables using n observations, what are respectively the numerator…
4. Q4Suppose X_i is income of an individual i and Y_i is the event that this individual owns a house, P_i = prob(Y_i = 1 | X_i) and Z_i = B1 + B2 X_i.…
5. Q5If the estimated slope coefficient in the regression of Y on X is B, what will be the estimated slope coefficient in the regression of 5Y on 10X?
6. Q6Which of the following tests has stationarity as the null hypothesis?
7. Q7For a VAR model estimated using two variables X and Y, lags of Y are jointly significant in the equation for X but lags of X are jointly…
8. Q8Suppose India is the home country and USA is the foreign country. The interest rates in India and USA are 6% and 4% respectively. The exchange rate…
9. Q9In the model ln Y_i = a + B X_i + u_i, where ln is the natural log, the elasticity of Y with respect to X is given by:
10. Q10In an economy real GDP has increased from 990 PPP to 1080 PPP during 2015 to 2020. The incremental capital output ratio is 2.5. The rate of…
11. Q11Which of the following dimensions is included in HPI-2 (Human Poverty Index - 2)?
12. Q12The Solow residual is:
13. Q13Gini-coefficient, a widely used measure of inequality in income, is defined as (n = number of individuals, mu = mean income, y_i = income of…
14. Q14Endogenous growth theory assumes:
15. Q15Suppose you are testing a null hypothesis about the population mean, H0: B = B0, against H1: B > B0, with population variance given. The computed…
16. Q16The power of a test refers to:
17. Q17Given a random sample of size n from a population with mean mu and variance sigma^2, the sample mean has the following expected value and variance:
18. Q18In March 2023 the consumer price index (CPI) of a country with a 1982 base index of 100 was 234.7. This means the cost of purchasing the market…
19. Q19Consider a production function q = x + y, where x and y are the two inputs. If the respective input prices are w1 and w2 and assume w1 > w2, then…
20. Q20Suppose a cost function of producing q level of output is C(w, r, q) = q(w/alpha + r/beta), where w and r are the wage cost and rental cost of the…
21. Q21If f(x, y) is a homogeneous function of degree 2 with f'(2, 3) = 4 and f'(4, 6) = 12, find f(6, 9):
22. Q22If the Average Revenue function AR = 10 + 5q - q^2, then the Marginal Revenue function is a:
23. Q23Suppose a consumer has a utility function u(x) = 10*sqrt(x), where x is money income. The consumer's initial endowment is Rs. 50. She may suffer a…
24. Q24Suppose f(.) is a continuous function over a closed and bounded interval [a, b]. Then there exists a point d in [a, b] where f(.) has a minimum, and…
25. Q25Consider a consumer's choice based on only two commodities i.e. X in R^2_+, where X is a set of all commodity bundles. Suppose the budget set B is B…
26. Q26Consider a Bertrand duopoly with a homogeneous product, market demand y = y1 + y2 = 1 - p, and cost functions C(y_i) = (1/2)y_i for i = 1, 2. Each…
27. Q27Suppose the cost function C(w1, w2, y) = y(w1 + sqrt(w1*w2) + w2), where w1 and w2 are the prices of two inputs used in production of y. Which of…
28. Q28The demand and supply functions for a cobweb model are Qd_t = 19 - 6P_t and Qs_t = 6P_{t-1} - 5. Choose the right answer related to the…
29. Q29Consider the payoffs of two players who are close friends and can either go for Diwali shopping or watch World Cup cricket. Payoff matrix (Player 1…
30. Q30In case of two perfect complement goods, which of the following statements is not true?
31. Q31If A = [[2,3],[0,4]] and B = [[2,0],[1,5]], which of the following is not correct?
32. Q32According to the Census 2011, which major Indian state is the most urbanized?
33. Q33In a market for labour's demand and supply, the equilibrium wage is w*. The government fixes a minimum wage at w'. Which of the following statements…
34. Q34In the given figure, DD is the demand curve and SS is the supply curve in a market (the supply curve is backward-bending, intersecting demand at a… · diagram
35. Q35If the revenue deficit of an economy is 3% of GDP, the primary deficit is 2% of GDP and the fiscal deficit is 7% of GDP, the capital expenditure to…
36. Q36If the interest rate is exogenously determined by the Central Bank of some country and the money supply is endogenously determined, the slope of the…
37. Q37Higher fiscal deficit to GDP ratio would necessarily cause inflation if the economy is under:
38. Q38Under a flexible exchange rate, if the current account deficit increases and the capital account surplus increases for an economy, the exchange rate…
39. Q39Repo rate is the interest rate at which:
40. Q40An economy characterised by huge involuntary unemployment would have an aggregate labour supply curve in a real wage-labour supply plane that would…
41. Q41World Hunger Index (WHI) includes: (A) Child mortality with weight 1/3 (B) Child stunting with weight 1/6 (C) Undernourishment with weight 1/3 (D)…
42. Q42Which of the following statements are not true for the Linear Probability Model (LPM)? (A) The conditional probability of an event given X is a…
43. Q43Given that Z_t is a zero-mean white noise process with variance sigma^2, which of the following are I(0) processes? (A) X_t = X_{t-1} + Z_t (B) X_t…
44. Q44Which of the following are features of a weakly stationary stochastic process? (A) Mean is time-varying (B) Mean is constant (C) Variance is…
45. Q45Suppose an economy is in medium-run equilibrium. The government enacts a law making entry of new firms difficult, increasing the monopoly power of…
46. Q46Among the new monetary aggregates suggested by the Third Working Group of RBI, which one/ones include time deposits of term less than or equal to…
47. Q47Which one of the following are money market instruments? (A) 91-day Treasury bill (B) Commercial paper (C) Certificate of deposit issued by banks…
48. Q48Consider the following statements about the Current Account of the balance of payments and indicate which are true. (A) Current Account deficit…
49. Q49Suppose India is the home country and USA is the foreign country. Interest rate in India is 3%, in the US 1%. The Rs-
50. Q50The current account deficit of the BoP may be financed in many ways. Which of the following are correct? (A) FDI inflows (B) Inflow of foreign…
51. Q51Consider the following statements about the Specific Factors model of International Trade and say which are correct. (A) Factors specific to the…
52. Q52Consider the following statements about the Aggregate Demand (AD) relation under price flexibility and say which are correct. (A) The AD curve…
53. Q53Given the following statements about major schools of thought in macroeconomics, state which are correct. (A) The Keynesians believed in wage and…
54. Q54Consider an economy with perfect capital mobility, fixed price level and flexible exchange rate. Starting from equilibrium, suppose there is a…
55. Q55Let H = e^Q where Q = A x^alpha y^beta. Consider the following statements. (A) Q is a homogeneous function for all values of alpha and beta. (B) H…
56. Q56A = [[1,3],[2,8],[4,0]] (3x2) and B = [[5],[9]] (2x1). (A) AB is given by [32, 82, 20]^T. (B) BA is given by [32, 82, 20]. (C) AB is not defined.…
57. Q57The following are five statements about short-run cost curves. (A) The MC curve cuts both the AC and AVC curves at their lowest point. (B) The MC…
58. Q58OLS output: wages (Rs thousand) = -3.36 + 0.64 S + 0.15 CA with standard errors (1.98)(0.12)(0.05). ESS = 4745.75 (df 2), RSS = 33651.28 (df 567).…
59. Q59Read the following statements regarding demography across India's major states. (A) Kerala pioneered fertility transition in India. (B) Bihar has…
60. Q60Consider a matrix A = [[3, 5],[-2, -4]]. Consider the following statements on the characteristic polynomial, Eigenvalues and Eigenvectors. (A) The…
61. Q61Suppose production function q = f(k, l) is homogeneous of degree 1. Consider the following statements. (A) The marginal products of capital and…
62. Q62Consider the following statements: (A) The union of a finite number of closed sets is a closed set. (B) The empty set is an open set but not a…
63. Q63Consider the following statements about a consumer's preferences over two commodities (X in R^2_+). (A) Monotonicity of preference implies strong…
64. Q64Consider the following statements: (A) If u(x) = V(b(x)) with V'(.) > 0, then V(x) is a utility function representing the same preference as b(x).…
65. Q65Consider the following three Constrained Optimization Problems (COP): (a) Maximize z = ln x subject to x >= 1; (b) Maximize z = ln x subject to x <=…
66. Q66Match List-I with List II (A) Ramsar Convention (B) Basel Convention (C) Montreal Protocol (D) Paris Agreement. List II (I) Ozone layer depletion…
67. Q67Match List-I with List II (A) Coase theorem (B) Climate change (C) Ecological dumping (D) Tradable emission permit. List II (I) Property right…
68. Q68Match List-I with List II (A) Kenneth Arrow (B) Robert Solow (C) Daniel Kahneman (D) Joshua Angrist. List II (I) Analysis of causal relationship…
69. Q69Match List-I with List II (A) Demographic Transition (B) Stages of growth (C) Rural-urban migration decision (D) Female labour force participation…
70. Q70Match List-I (Model/method) with List-II (Feature): (A) Logit model (B) Log-log model (C) Autoregressive model (D) Weighted least squares. List II…
71. Q71Match the following (Theory - Economist): (A) Permanent Income Hypothesis of Consumption (B) Life-cycle Hypothesis of Consumption (C) Real Business…
72. Q72Match List-I with List II (A) Unequal Exchange (B) The development of underdevelopment (C) Backward and forward linkage effect (D) Backwash effect.…
73. Q73Match List-I (Variable) with List-II (Distribution): (A) Sum of squares of n independent standard normal variates (B) Ratio of a standard normal…
74. Q74Match List-I (Property) with List-II (Type of Curve): (A) Investment is unresponsive to interest rates (B) Money demand is perfectly elastic w.r.t.…
75. Q75Match List-I with List II (A) Quantity theory of money (B) Involuntary unemployment (C) Randomised trial (D) Relative poverty. List II (I) Milton…
76. Q76Arrange the following steps of the exchange rate channel of the monetary transmission mechanism in correct order, from first to last. (A) reduction…
77. Q77Arrange the following former governors of RBI in the sequence in which they held the post, from earliest to latest. (A) Y.V. Reddy (B) D. Subbarao…
78. Q78Arrange the following events in the Indian Financial System in correct chronological order, from earliest to latest. (A) Setting up of PFRDA (B)…
79. Q79Match List-I with List II (A) Shephard's Lemma (B) Adverse Selection (C) Hotelling's Lemma (D) Roy's Identity. List II (I) Hidden types of agent…
80. Q80Consider the following centrally sponsored schemes in India and choose the right sequence of time (year) when they were launched, from earliest to…
81. Q81The steps involved in running the Chow Test are: (A) Run the regression on the pooled sample and calculate RSS_pooled. (B) Run the same regression…
82. Q82Arrange the following committees in order of their year of establishment, starting from the oldest. (A) Lakdawala Committee (B) Khusro Committee (C)…
83. Q83Arrange the following chronologically, starting from the oldest. (A) Theory of Big Push (B) The Accumulation of Capital (C) Theory of cumulative…
84. Q84Arrange the given schools of thought in macroeconomics in chronological order, from the oldest to the most recent. (A) The Keynesian school (B) The…
85. Q85The Central Bank maintains a fixed exchange rate (units of domestic currency per unit of foreign currency). The domestic currency is currently…
86. Q86Given below are two statements: Statement (I): Agricultural GDP constitutes less than 16% of aggregate GDP at 2011-12 constant prices and less than…
87. Q87Given below are two statements: Statement (I): The Government's spending on social services as a percentage of GDP has been rising since 2017-18.…
88. Q88Given below are two statements: Statement (I): Human Development is a process of enlarging people's choices. Statement (II): The Human Development…
89. Q89Given below are two statements, one labelled Assertion (A) and the other Reason (R). Assertion (A): Given a random sample, the distribution of the…
90. Q90Given below are two statements, one labelled Assertion (A) and the other Reason (R). Assertion (A): According to the Domar condition of debt…
91. Q91Two firms produce steel with a negative production externality. Market price P = 1. Scenario 1: firm 1's cost C1(q1) = q1^2 and firm 2's cost C2(q1…
92. Q92Two firms produce steel with a negative production externality (market price P = 1). Scenario 1: firm 1's cost C1(q1) = q1^2; firm 2's cost C2(q1…
93. Q93Two firms produce steel with a negative production externality (market price P = 1). Scenario 1: firm 1's cost C1(q1) = q1^2; firm 2's cost C2(q1…
94. Q94Two firms produce steel (market price P = 1). Scenario 2: the negative externality works both ways, C1(q1, q2) = (q1 + 0.75 q2)^2 and C2(q1, q2) =…
95. Q95Two firms produce steel with a reciprocal negative externality (Scenario 2). Do you think the equilibrium outcome for Scenario 2 is inefficient, and…
96. Q96Per the NSO/MOSPI press release (31 May 2023): GDP at current prices was Rs. 2,34,71,012 crore (2021-22) and Rs. 1,98,29,927 crore (2020-21); GDP at…
97. Q97Per the NSO/MOSPI data (2021-22, current prices): GDP Rs. 2,34,71,012 crore; PFCE Rs. 1,43,44,336 crore; GFCE Rs. 26,25,361 crore; GFCF Rs.…
98. Q98Per the NSO/MOSPI data (2021-22, current prices): GDP at market prices Rs. 2,34,71,012 crore and net taxes on products Rs. 20,32,128 crore. The…
99. Q99Per the NSO/MOSPI data (2021-22, current prices): GDP Rs. 2,34,71,012 crore; GFCF Rs. 67,86,391 crore; change in stocks Rs. 1,63,438 crore…
100. Q100Per the NSO/MOSPI data (2021-22, current prices): GDP Rs. 2,34,71,012 crore; PFCE Rs. 1,43,44,336 crore; GFCE Rs. 26,25,361 crore; GFCF Rs.…