Net Economics Mock Test

UGC NET PAPER 1 FULL NOTES & 3500+ MCQs

1. Who is the author of principles of political economy and taxation?

1. Ricardo
2. Adam Smith
3. Alfred Marshall
4. J.B Clark

2. Law of Demand was pioneered by which Economist ?

1. Milton Friedman
2. Adam Smith
3. Alfred Marshall
4. John Locke

3. The compensation principle was suggested by?

1. All of them
2. Kaldor
3. Scotovsky
4. Hicks

4. State A is socially preferable to state B,if the losers in A cannot profitably change from B to A.This statement relates to ?

1. Scitovsky criterion
2. Little criterion
3. Hicks criterion
4. None of the above

5. In Cournot duopoly two firms are operating with?

1. Identical cost
2. Average cost
3. Marginal cost
4. Fixed cost

6. Marginal cost is lessthan the average cost when average cost falls with?

1. An decrease in output
2. Constant output
3. An increase in output
4. None of the above

7. Returns to scale refers to the effect on total output of changes in ?

1. All the inputs simultaneously
2. Various inputs separately
3. A factor
4. None of the above

8. The size of a monopolist's plant and the degree of utilisation of any given plant size,depend entirely on the ?

1. Factor price
2. Market supply
3. Market demand
4. Price of the good

9. Break-even point for a firm occurs where it's?

1. Total revenue=Total cost
2. Total revenue>_Total cost
3. Total revenue>Total cost
4. None of the above

10. Monopoly equilibrium can be reached when ?

1. Marginal cost is rising
2. Marginal cost is remaining constant
3. All of these
4. Marginal cost is falling

11. Monopolistic exploitatation can only be removed by creating the conditions of........... competition in the........... market?

1. Perfect,product
2. Perfect,labour
3. Imperfect,labour
4. Imperfect,product

12. The study of inflation is part of ?

1. Micro economics
2. Normative economics
3.Macroeconomics
4. Financialeconomics

13. An upward sloping demand curve can be expected for a.Giffen goods b.Consumer goods c.Precious goods Of these statements?

1. a and c are true
2. Only a is true
3. Only b is true
4. Only c is true

14.Assertion(A).In monopoly there is excess capacity. Reason(R).In monopoly the output is morethan optimum. ?

1. Both A and R are true and R isthe correct explanatiin of A
2. Both A and R are true but R is not the correct explanation of A
3. A is true but R is false
4. A is false but R is true

15. Law of diminishing marginal rate of substitution is associated with?

1. Hicks
2. Slutsky
3. Keynes
4. Marshall

16. A factor of production is said to be superior if it's expenditure elaticity?

1. Is negative
2. Lies in the unit interval
3. Exceeds unity
4. Is zero

17. MU curve will be below x-axis when?

1. MU is negative
2. MU is positive
3. MU is zero
4. MU is constant

18. The concept Marginal utility is useful for explaining diamond-water This statement is?

1. Partially correct
2. Absolutely wrong
3. Absolutely correct
4. None of these

19. Total Utility curve is?

1. Concave to x axis
2. Convex to x axis
3. Concave to y axis
4. Concave or convex depending on situations

20. The price which a consumer would be willing to pay for a commodity is equal to his ?

1. Total utility
2. Marginal utility
3. None of these
4. Average utility