TheEconomics hub
MOCK TEST-3
*Assertion
and Reason Questions based on last year papers of UGC-NET (economics)
1.
Assertion (A): An Iso-Cost Line is a straight line.
Reason (R):
The market rate of exchange between the two inputs is constant.
Codes:
(A) Both (A) and (R) are true and (R) is correct
explanation of (A).
(B) Both (A) and (R) are true, but (R) is not correct
explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
2.
Assertion (A): In the agricultural lending mechanism of India,
moneylenders
despite their Usurious rates of interest are still
predominant.
Reason (R):
Most often the commercial banks could not meet the target of 18% of their total
lending for the agricultural sector in the country.
Codes:
(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) (A) is true and (R) is false.
(D) (A) is false and (R) is true.
3.
Assertion (A): In India, ‘Green Revolution’ was also criticized as
Wheat
Revolution.
Reason (R):
The productivity of wheat in India during the1970’s was one of the highest in
the world.
Codes:
(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) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
4.
Assertion (A):
Agricultural income is taxed by the
Union Government.
Reason (R):
Agriculture is a State subject.
Codes:
(A) Both (A) and (R) are true and (R) is the correct
explanation of (A).
(B) Both (A) and (R) are true and (R) is not the
correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
formed freely.
Reason (R):
The Reserve Bank of India has a monopoly dealer position and the demand for Government
securities has a captive nature.
Codes:
(A) (A) is true, but (R) is false.
(B) Both (A) and (R) are correct, but (R) is not the
correct explanation of (A).
(C) (A) is not correct, but (R) is correct.
(D) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
6.
Assertion (A)
: There is a natural tendency to
collude under oligopoly.
Reason (R) :
Inter-dependence of firms in oligopolistic markets.
Codes :
(A) Both (A) and (R) are correct, but (R) is not the
correct explanation of (A).
(B) Both (A) and (R) are correct, and (R) is the
correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
7.
Assertion (A)
: In short run, the marginal cost of
output is the cost of additional
labour and materials used in production.
Reason (R) :
Materials and labour used in production alone vary in short run.
(A) (A) is correct and (R) is incorrect.
(B) (A) is incorrect, but (R) is correct.
(C) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
(D) Both (A) and (R) are incorrect.
8.
Assertion (A)
: ‘A country is poor because it is
poor’.
Reason (R) :
Income of a poor country is low, so its savings and investment are low. Low investment
limits its productive capacity which leads to low output and income.
Codes :
(A) Both (A) and (R) are correct, but (R) is not the
correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
9.
Assertion (A)
: All historical events are the
result of a continuous economic
struggle between different classes and groups in a
society.
Reason (R) :
This struggle is because of the conflict between the mode of production and the
value attached to the roles of different agents of production.
Codes :
(A) Both (A) and (R) are correct, but (R) is not the
correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
10. Assertion (A) :
K/L will adjust through time to the equilibrium value of the ratio.
Reason (R) :
Technical coefficients of production are fixed.
Codes :
(A) Both (A) and (R) are correct, but (R) is not the
correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
11. Assertion (A)
: Investment has a demand effect.
Reason (R) :
Investment augments the productivity and income in the economy.
Codes :
(B) Both (A) and (R) are correct, but (R) is not the
correct explanation of (A).
(C) (A) is correct, and (R) is not correct.
(D) (A) is incorrect and (R) is correct.
12. Assertion (A) :
Agriculture is the main source of livelihood of people in
India.
Reason (R) :
Measures for agricultural development should be undertaken.
Codes :
(A) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is incorrect
explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect and (R) is correct.
13. Assertion (A)
: In the following regression equation Y = a + bX, 'a' shows the
autonomous value of Y.
Reason (R) :
If X = 0, Y = a holds.
Hence, a is the minimum value of Y which is
independent of any influence of X on Y.
Codes :
(A) Both (A) and (R) are correct and (R) is the true
explanation of (A).
(B) (A) is correct, but (R) is not the correct
explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (A) is incorrect, but (R) is correct.
14. Assertion (A)
: Many developing countries contend that labour standards constitute a barrier
to
free trade.
Reason (R) :
Their competitive advantage in the global economy is cheap labour.
(A) Both (A) and (R) are correct 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 false but (R) is true.
(D) (A) is true but (R) is false.
15. Assertion (A) :
India’s Public sector helped in the development of a sound
industrial base.
Reason (R) :
Public sector is under State control. The role of State in formulating
appropriate policies and providing financial and other support has helped the
public sector.
(A) (A) is correct, but (R) is wrong.
(B) Both (A) & (R) are correct.
(C) (A) is wrong but (R) is correct.
(D) Both (A) and (R) are wrong.
16. Assertion (A):
During the financial year 2011-12, the Central Government is not
likely to achieve the target of raising Rs. 40,000
crores through disinvestment policy.
Reason (R):
Policy of increased public borrowings to bridge the fiscal gap is justified.
In the context of the above two statements, which one
is correct from the given?
Codes:
(A) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is not the correct
explanation of (A).
(C) (A) is correct but (R) is incorrect.
(D) (R) is correct but (A) is incorrect.
17. Assertion (A):
Employment growth in the organized sector (both public and
private combined) has increased during the period
1994-2008.
Reason (R):
There has been relatively faster employment growth in the private sector.
Codes:
(A) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is not the
correct explanation of (A).
(C) (A) is correct but (R) is incorrect.
(D) (A) is incorrect but (R) is correct.
18. Assertion (A):
The capital base of regional rural banks (RRBs) is found to be weak.
Reason (R):
Deposit mobilization of RRBs has been inadequate.
From the above two statements, select the correct
answer from the given codes.
Code :
(A) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is not the
correct explanation of (A).
(C) (A) is false but (R) is true.
(D) (A) is true but (R) is false.
19. Assertion (A)
: The imposition of Sales Tax does not affect the profit of the
monopolist.
Reason (R) :
The monopolist shifts the burden of Sales Tax on to the consumer.
Codes :
(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) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
20. Assertion (A)
: There exits inverse relationship between interest rates and bond
prices.
Reason (R) :
A bond price represents the present discounted value of the payments agreed
upon at the time when the bond was issued.
Codes :
(A) Both (A) and (R) are correct, and (R) is the
correct explanation of (A).
(B) (A) is correct, but (R) is not the correct explanation
of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
21. Assertion (A) :
The Natural Rate of Unemployment Hypothesis yields in the long
run a vertical Phillips Curve.
Reason (R) :
The Natural Rate of Unemployment assumes static price expectations.
Codes :
(A) (A) is correct and (R) is the correct explanation
of (A).
(B) Both (A) and (R) are correct and (R) is not the
correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) Both (A) and (R) are incorrect.
22. Assertion (A) :
A lump sum tax imposed on a monopolist cannot be shifted to the
consumers.
Reason (R) :
The lump sum tax becomes a part of his fixed cost and it does not affect the
marginal cost of production.
Codes :
(A) (A) is true, but (R) is false.
(B) Both (A) and (R) are false.
(C) (A) is not correct, but (R) is correct.
(D) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
23. Assertion (A)
: The public distribution system in India has close links with food
security for the vulnerable segments of population.
Reason (R) :
Public distribution system is failure in India.
Codes :
(A) Both (A) and (R) are true and (R) is correct
explanation for (A).
(B) Both (A) and (R) are true and (R) is not correct
explanation for (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
24. Assertion (A)
: Fisher’s Index No. is ideal Index No.
Reason (R) :
Fisher’s Index satisfies time reversal and factor reversal tests.
Codes :
(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 correct
explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
25. Assertion (A):
Sunk costs are not relevant to economic decisions.
Reason (R):
The opportunity cost of such resources is zero.
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.
26. Assertion (A):
According to Keynes, individuals hold either cash or all bonds.
Reasoning (R):
Because, according to him, the speculative demand for money is associated with
uncertainty.
Codes:
(A) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the
correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) Both (A) and (R) are incorrect.
27. Assertion (A):
The fiscal policy is less effective in an open economy than in a
closed economy.
Reasoning (R):
Because the value of the multiplier in an open economy is less than that in a
closed economy.
Codes:
(A) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the
correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) Both (A) and (R) are incorrect.
28. Assertion (A):
Innovations in one field rarely induce innovations in related fields.
Reason (R):
Once an innovation becomes profitable, other entrepreneurs follow it in “Swarm
like clusters”.
Codes:
(A) (A) is not correct and (R) is correct.
(B) (A) is correct and (R) is not correct.
(C) Both (A) and B are not correct.
(D) Both (A) and (R) are correct.
29. Assertion (A):
Dependence of Less Developed Countries (LDCs) on Developed
Countries (DCs) is the main cause for the
underdevelopment of the former.
Reason (R):
“This is because of historical evolution of a highly unequal international
capitalist system of rich-poor country relationships.”
Codes:
(A) (A) is correct and (R) is the correct reason for
(A).
(B) (A) is incorrect, but (R) is correct.
(C) Both (A) and (R) are incorrect.
(D) Both (A) and (R) are correct.
30. Assertion (A):
Reserve Bank of India raises money supply through purchase of
securities in the money market.
Reason (R):
Increase in money supply may result in the expansion of investment and
employment.
Codes:
(A) Both (A) and (R) are correct and (R) is the
correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the
correct explanation of (A).
(C) Both (A) and (R) are incorrect.
(D) (A) is correct, but (R) is incorrect.
