UGC NET Sub Economics Solved Model Paper

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1. Which of the following are the basic
assumptions of cardinal utility
analysis ?
I. Utility is a measurable and
quantifiable entity.
II. Marginal utility of money
changes with changes in real
income.
III. Utilities derived from various
goods are inter-dependent.
IV. The use of introspective
method in judging the
behaviour of marginal utility.
Codes :
(A) I and II are correct.
(B) I and III are correct.
(C) I and IV are correct.
(D) I, III and IV are correct.

2. Engel Curve denotes
(A) various amounts of a good
which a consumer would be
willing to purchase at various
price levels.
(B) various amounts of a good
which a consumer would be
willing to purchase at various
income levels.
(C) various amounts of a good
purchased when the price of its
substitutes tend to rise.
(D) the relationship between
income effect and substitution
effect.

3. A producer is said to be operating
with excess capacity
(A) when he produces an output
greater than that given by the
minimum Average Total Cost
(B) when he produces an output
greater than at given by the
maximum Average Total Cost
(C) When he produces an output
equal to that given by the
minimum Average Total Cost
(D) When he produces an output
smaller than that given by the
Minimum Average Total Cost

4. Assertion (A) : Harvey Leibenstein
asserted that marginal
conditions required for
economic efficiency are not
usually satisfied in practice.
Reason (R) : People are not fully
motivated towards
maximization or minimization.
Codes :
(A) Both (A) and (R) are correct
and (R) is the correct
explanation of (A).
(B) (A) is correct, but (R) is not
correct.
(C) Both (A) and (R) are correct,
but (R) is incorrect explanation
of (A).
(D) (R) is correct, but (A) is incorrect.

5. A graphical illustration used to
explain efficiency conditions and
demonstrates how the allocations of
some goods and resources can be
improved through exchange is called
(A) production possibility curves
(B) social indifference curves
(C) Edgeworth box diagram
(D) Phillips curve
UGC NET Economics Paper




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