The complete UGC NET June 2023 question paper for Economics, covering Paper 1 (General Aptitude) and Paper 2 (Economics). Every question below is shown with its options and the correct answer, and a detailed explanation you can unlock by signing in. All 150 questions are free to practise.
| Exam | UGC NET June 2023 |
|---|---|
| Papers | Paper 1 (General Aptitude) and Paper 2 (Economics) |
| Exam date(s) | June 20, 2023 |
| Shift(s) | Shift 1 |
| Paper 1 questions | 50 questions · 60 minutes · 100 marks |
| Paper 2 questions | 100 questions · 120 minutes · 200 marks |
| Total | 150 questions |
| Marking scheme | +2 per correct answer · No negative marking |
50 questions with the answer key and explanations.
Use the shared company data to answer. In company B, the difference between Arts graduates and Science graduates is:
The table gives employee counts and graduate percentages for five companies in December 2021. A dash is a value to calculate if needed.
| Company | Employees | Science | Commerce | Arts |
|---|---|---|---|---|
| A | 2100 | 32% | – | – |
| B | 1400 | – | 31% | 40% |
| C | – | 30% | 30% | – |
| D | – | – | 40% | 20% |
| E | – | 35% | 50% | – |
Answer: (C) 154
Explanation
Use the shared company data to answer. In company E, the average number of Arts and Commerce graduates is 377. The total number of employees in company E is:
The table gives employee counts and graduate percentages for five companies in December 2021. A dash is a value to calculate if needed.
| Company | Employees | Science | Commerce | Arts |
|---|---|---|---|---|
| A | 2100 | 32% | – | – |
| B | 1400 | – | 31% | 40% |
| C | – | 30% | 30% | – |
| D | – | – | 40% | 20% |
| E | – | 35% | 50% | – |
Answer: (B) 1160
Explanation
Use the shared company data to answer. In company A, the ratio of Commerce graduates to Arts graduates is 10:7. The number of Arts graduates is:
The table gives employee counts and graduate percentages for five companies in December 2021. A dash is a value to calculate if needed.
| Company | Employees | Science | Commerce | Arts |
|---|---|---|---|---|
| A | 2100 | 32% | – | – |
| B | 1400 | – | 31% | 40% |
| C | – | 30% | 30% | – |
| D | – | – | 40% | 20% |
| E | – | 35% | 50% | – |
Answer: (B) 588
Explanation
Use the shared company data to answer. Company B's workforce rose by 20% from December 2021 to December 2022. If 20% of its December 2022 workforce were Science graduates, how many Science graduates were there in December 2022?
The table gives employee counts and graduate percentages for five companies in December 2021. A dash is a value to calculate if needed.
| Company | Employees | Science | Commerce | Arts |
|---|---|---|---|---|
| A | 2100 | 32% | – | – |
| B | 1400 | – | 31% | 40% |
| C | – | 30% | 30% | – |
| D | – | – | 40% | 20% |
| E | – | 35% | 50% | – |
Answer: (C) 336
Explanation
Use the shared company data to answer. Company D has three times as many employees as company C. The difference between their numbers of Arts graduates is 480. The number of employees in company C is:
The table gives employee counts and graduate percentages for five companies in December 2021. A dash is a value to calculate if needed.
| Company | Employees | Science | Commerce | Arts |
|---|---|---|---|---|
| A | 2100 | 32% | – | – |
| B | 1400 | – | 31% | 40% |
| C | – | 30% | 30% | – |
| D | – | – | 40% | 20% |
| E | – | 35% | 50% | – |
Answer: (D) 2400
Explanation
Which assessment procedure tests skills and abilities as they would be applied in real-life situations?
Answer: (B) Authentic assessment
Explanation
Ms. Smith wants to create a mind map for students to understand the different parts of flowers.
A. Miro
B. Coggle
C. Podcast
D. MindMeister
E. Edpuzzle
Choose the correct combination.
Answer: (C) A, B and D only
Explanation
Which of the following are elements of cooperative learning?
A. Individual accountability
B. Positive interdependence
C. Promotive interaction
D. Social skills
E. Group processing
Choose the correct combination.
Answer: (D) A, B, C, D and E
Explanation
The brain system that temporarily holds and processes information for complex tasks such as language comprehension, learning, and reasoning is:
Answer: (B) Working memory
Explanation
Statement I: The goal of reciprocal teaching is to help students understand and think deeply about what they have read.
Statement II: Adaptive teaching provides every student with challenging instruction and uses supports when needed, removing them as students become able to work more independently.
Choose the most appropriate answer.
Answer: (A) Both Statement I and Statement II are true
Explanation
Which of the following is NOT a type of longitudinal research?
Answer: (A) Cross-sectional study
Explanation
Which statements about an independent variable are correct?
A. It can have at most two levels.
B. It can have any number of levels.
C. It can be qualitative.
D. It can be quantitative.
Choose the correct combination.
Answer: (B) B, C and D only
Explanation
Identify the correct statements on handling plagiarism under the UGC Regulations, 2018.
A. A higher education institution can initiate proceedings on the basis of an examiner's findings.
B. A higher education institution cannot take suo motu notice of plagiarism.
C. The Departmental Academic Integrity Panel is headed by the Head of the Department.
Choose the correct combination.
Answer: (B) A and C only
Explanation
Statement I: When a selection procedure is biased, taking a large sample helps reduce the bias.
Statement II: In normally distributed data, the chance of an observation lying more than three standard deviations from the mean is very small.
Choose the most appropriate answer.
Answer: (D) Statement I is incorrect but Statement II is correct
Explanation
Statement I: The p-value of a test depends on sample size.
Statement II: A substantively important difference may not be statistically significant when the sample size is too small.
Choose the most appropriate answer.
Answer: (A) Both Statement I and Statement II are true
Explanation
In communication, storytelling is like performing a:
Answer: (A) Social act
Explanation
Subliminal communication is part of:
Answer: (B) Political propaganda
Explanation
Which of the following are features of mass communication?
A. Face-to-face
B. Private
C. Public
D. Rapid
E. From a professional source
Choose the correct combination.
Answer: (C) C, D, E only
Explanation
Statement I: Verbal communication becomes more powerful when accompanied by non-verbal messages.
Statement II: Non-verbal communication does not reflect personal feelings, emotions, and attitudes.
Choose the most appropriate answer.
Answer: (C) Statement I is true but Statement II is false
Explanation
Statement I: Wilbur Schramm's model of communication had interpreters acting as both encoders and decoders.
Statement II: Wilbur Schramm was one of the first scholars to consider communication an interactive process.
Choose the most appropriate answer.
Answer: (A) Both Statement I and Statement II are true
Explanation
In the letter series CCABD, DDBCE, EECDF, what is the next term?
Answer: (C) FFDEG
Explanation
In a coding scheme, SCHOOL is coded as TEKSTR. How is OFTEN coded in the same scheme?
Answer: (A) PHWIS
Explanation
If the radius of a circle increases by 10%, by what percentage does its area increase?
Answer: (D) 21%
Explanation
Seventy percent of an article's cost price equals fifty percent of its selling price. What is the profit or loss percentage on cost price?
Answer: (C) 40% profit
Explanation
A sum becomes ₹1000 in two years and ₹1100 in four years at simple interest. What is the annual rate of interest?
Answer: (B) 5 5/9%
Explanation
Arrange these terms in decreasing order of intension.
A. Mammal
B. Wildcat
C. Feline
D. Animal
E. Vertebrate
Choose the correct sequence.
Answer: (A) B, C, A, E, D
Explanation
Which fallacy is exemplified by this statement?
“Gun ownership should not be prohibited. A person can kill someone with a hockey stick, but no one proposes banning hockey-stick ownership.”
Answer: (B) Weak analogy
Explanation
“No poets are scientists. Some artists are poets. Therefore, some artists are scientists.” Which formal fallacy is committed?
Answer: (C) Drawing an affirmative conclusion from a negative premise
Explanation
Statement I: The form of an inductive argument is evaluated in degrees of likelihood or probability.
Statement II: A strong inductive argument with true premises is called a cogent argument.
Choose the most appropriate answer.
Answer: (A) Both Statement I and Statement II are correct
Explanation
Which arrangements involve the fallacy of the irregular middle term?
A. Sound is a quality because it is visible.
B. Sound is eternal because it is audible.
C. Sound is eternal because it is produced.
D. All things are non-eternal because they are knowable.
Choose the correct combination.
Answer: (B) B and D only
Explanation
Clickjacking, a type of cyberattack, is:
Answer: (C) A malicious technique that tricks web users into revealing confidential information
Explanation
Statement I: Google Drive is an extension of Google Docs and provides cloud-storage services.
Statement II: iCloud is a cloud-storage service provided by Apple.
Choose the most appropriate answer.
Answer: (A) Both Statement I and Statement II are true
Explanation
Statement I: A cookie is a packet of information sent by a web browser to a web server.
Statement II: Spam can clog a user's inbox with unwanted email and can also lead to phishing attacks.
Choose the most appropriate answer.
Answer: (A) Both Statement I and Statement II are true
Explanation
In MS Excel, 10,000 random numbers from 0 to 1 are in A1:A10000. How many of these statements are true?
A. COUNTIFS with one criterion based on A1:A10000 cannot evaluate below 0.
B. COUNTIFS with two criteria, both based on A1:A10000, cannot evaluate below 0.
C. COUNTIFS with one criterion based on A1:A10000 cannot evaluate above 10000.
D. COUNTIFS with two criteria, both based on A1:A10000, cannot evaluate above 10000.
Answer: (A) 4
Explanation
Match the terms with the descriptions.
| Term | Description |
|---|---|
| A. Tweening | I. One image is smoothly changed into another, using tweening for the transition effect. |
| B. Morphing | II. Artificially created environment. |
| C. Rendering | III. Generating intermediate frames between images to create the impression of gradual change. |
| D. Virtual Reality | IV. Generating an image from a model using software. |
Answer: (D) A-III, B-I, C-IV, D-II
Explanation
Which statements about pyrolysis are correct?
A. It is a biochemical conversion process.
B. It is useful for producing bio-oil.
C. It yields minimum waste.
D. Its liquid product can substitute for heating oil.
E. It can produce ethanol.
Choose the correct combination.
Answer: (B) B, C and D only
Explanation
Electrostatic precipitators are used to control:
Answer: (A) Air pollution
Explanation
Among these greenhouse gases, whose global-warming potential is defined as 1?
Answer: (C) Carbon dioxide
Explanation
Statement I: Some people suffer from Sick Building Syndrome (SBS).
Statement II: SBS is caused by the supply of polluted water in a building.
Choose the most appropriate answer.
Answer: (C) Statement I is correct but Statement II is incorrect
Explanation
The 1992 United Nations Conference on Environment and Development in Rio de Janeiro is also known as:
Answer: (C) Earth Summit
Explanation
According to NEP 2020, Global Citizenship Education will help learners become active promoters of which societies?
A. Tolerant
B. Peaceful
C. Inclusive
D. Secure
E. Sustainable
Choose the most appropriate combination.
Answer: (C) A, B, C, D and E
Explanation
According to NEP 2020, undergraduate educational approaches integrating humanities and arts with which disciplines have consistently shown positive learning outcomes?
A. Science
B. Mathematics
C. Technology
D. Mass Media
E. Engineering
Choose the most appropriate combination.
Answer: (A) A, B, C and E only
Explanation
Which are the encompassing principles underlying successful implementation of value education?
A. Conviction
B. Connection
C. Critical Thinking
D. Commitment
E. Courage
Choose the most appropriate combination.
Accepted answers: (A) A, C and D only, (B) B, C and E only, (C) A, B, D and E only, (D) A, B, C and E only
Explanation
The Hunter Commission recommended withdrawal of government support from:
Answer: (A) Collegiate education
Explanation
Statement I: In ancient times, Nalanda attained its greatest and most brilliant achievements in logic.
Statement II: Each Nalanda professor had charge of only one subject.
Choose the most appropriate answer.
Answer: (A) Both Statement I and Statement II are correct
Explanation
Use the shared fire-safety passage. What is its main focus?
Firefighters often speak to school and community groups about fire prevention and detection. Smoke detectors reduce the risk of dying in a fire by half, so firefighters explain how to install them in homes.
A smoke detector should be on each floor. Because sleeping people are particularly vulnerable to an emergent fire, there must be a detector outside each sleeping area. A hallway between living spaces and bedrooms is a good site.
Because dead-air space can be missed by turbulent hot air, install detectors on the ceiling at least four inches from the nearest wall, or high on a wall at least four but no more than twelve inches from the ceiling.
Do not mount detectors near windows, exterior doors, or other places where drafts might direct smoke away. Do not place them in kitchens or garages, where cooking and gas fumes can cause false alarms.
Answer: (B) Proper installation of home smoke detectors
Explanation
Use the shared fire-safety passage. The passage indicates that one responsibility of a firefighter is to:
Firefighters often speak to school and community groups about fire prevention and detection. Smoke detectors reduce the risk of dying in a fire by half, so firefighters explain how to install them in homes.
A smoke detector should be on each floor. Because sleeping people are particularly vulnerable to an emergent fire, there must be a detector outside each sleeping area. A hallway between living spaces and bedrooms is a good site.
Because dead-air space can be missed by turbulent hot air, install detectors on the ceiling at least four inches from the nearest wall, or high on a wall at least four but no more than twelve inches from the ceiling.
Do not mount detectors near windows, exterior doors, or other places where drafts might direct smoke away. Do not place them in kitchens or garages, where cooking and gas fumes can cause false alarms.
Answer: (D) Speak to school groups about the importance of fire prevention
Explanation
Use the shared fire-safety passage. Compared with people without smoke detectors, people living in homes with detectors have a:
Firefighters often speak to school and community groups about fire prevention and detection. Smoke detectors reduce the risk of dying in a fire by half, so firefighters explain how to install them in homes.
A smoke detector should be on each floor. Because sleeping people are particularly vulnerable to an emergent fire, there must be a detector outside each sleeping area. A hallway between living spaces and bedrooms is a good site.
Because dead-air space can be missed by turbulent hot air, install detectors on the ceiling at least four inches from the nearest wall, or high on a wall at least four but no more than twelve inches from the ceiling.
Do not mount detectors near windows, exterior doors, or other places where drafts might direct smoke away. Do not place them in kitchens or garages, where cooking and gas fumes can cause false alarms.
Answer: (A) 50% better chance of surviving a fire
Explanation
Use the shared fire-safety passage. A smoke detector should not be installed near a window because:
Firefighters often speak to school and community groups about fire prevention and detection. Smoke detectors reduce the risk of dying in a fire by half, so firefighters explain how to install them in homes.
A smoke detector should be on each floor. Because sleeping people are particularly vulnerable to an emergent fire, there must be a detector outside each sleeping area. A hallway between living spaces and bedrooms is a good site.
Because dead-air space can be missed by turbulent hot air, install detectors on the ceiling at least four inches from the nearest wall, or high on a wall at least four but no more than twelve inches from the ceiling.
Do not mount detectors near windows, exterior doors, or other places where drafts might direct smoke away. Do not place them in kitchens or garages, where cooking and gas fumes can cause false alarms.
Answer: (C) A draft may pull smoke away from the detector
Explanation
Use the shared fire-safety passage. A smoke detector must always be placed:
Firefighters often speak to school and community groups about fire prevention and detection. Smoke detectors reduce the risk of dying in a fire by half, so firefighters explain how to install them in homes.
A smoke detector should be on each floor. Because sleeping people are particularly vulnerable to an emergent fire, there must be a detector outside each sleeping area. A hallway between living spaces and bedrooms is a good site.
Because dead-air space can be missed by turbulent hot air, install detectors on the ceiling at least four inches from the nearest wall, or high on a wall at least four but no more than twelve inches from the ceiling.
Do not mount detectors near windows, exterior doors, or other places where drafts might direct smoke away. Do not place them in kitchens or garages, where cooking and gas fumes can cause false alarms.
Answer: (B) Outside all bedrooms in a home
Explanation
100 questions with the answer key and explanations.
Suppose good 1 is taken on horizontal axis and good 2 on vertical axis, then what happens to the budget line if the price of good 1 doubles and price of good 2 triples?
Answer: (B) The budget line becomes flatter
Explanation
Suppose that a scarce resource, facing a constant demand, will be exhausted in 10 years. If an alternative resource will be available at a price of $40 and if the interest rate is 10%, what must be the price of the scarce resource today -
Answer: (D) $15.42
Explanation
Which one of the following is not a characteristic of market structure?
Answer: (D) Vertical integration
Explanation
Which of the following is not true in the case of second theorem of welfare economics?
Answer: (C) It holds when there are increasing returns to scale.
Explanation
Taylor's Rule tells.
Answer: (A) How monetary authority sets interest rate in response to economic activity
Explanation
Monetary base of an economy is,
Answer: (A) Amount of currency held by public and by the banks as reserves.
Explanation
Given the income multiplier formula 𝑚 = lower the marginal propensity to save. 1−𝑀𝑃𝐶
Answer: (A) Higher will be the multiplier effect
Explanation
In the national income identity Y = C +1 + G. investment (I) is a function of.
Answer: (C) Real Interest Rate
Explanation
Which one of the following is not correct about LM schedule?
Answer: (D) The LM schedule is the schedule giving the combinations of values of investment and interest rate that produce equilibrium in the money market.
Explanation
The merchant's file of 20 accounts contains 6 delinquent and 14 non-delinquent accounts. An auditor randomly selects 5 of these accounts for examination. What is the probability that the auditor finds exactly 2 delinquent cases?
Answer: (C) 0.3087
Explanation
A company has 140 employees, of which 30 are supervisors. 80 of the employees are married, and 20% of the married employee are supervisors. If a company employee is randomly selected, what is the probability that the employee is married and is a supervisor?
Answer: (D) 0.1143
Explanation
The Hausman's specification error test is used to test whether
Answer: (B) An endogenous variable is correlated with the error term.
Explanation
In random walk without drift.
Answer: (A) The effect of shock persists throughout the time period.
Explanation
Given below are the alternative formulae for F-test statistics. We are interested in testing the statistical significance of the incremental contribution of W3 at 5% level of significance to 𝑌 = 𝛽0 + 𝛽1𝑋1 + 𝛽2𝑋2 + 𝑈.Which of these is not appropriate? Where RSS is residual sum of square and ESS is explained sum of square.
Answer: (C) 𝐹 = 𝐸𝑆𝑆𝑛𝑒𝑤−𝐸𝑆𝑆𝑜𝑙𝑑⁄𝑑.𝑓 𝐸𝑆𝑆𝑛𝑒𝑤⁄𝑑.𝑓 𝑅2⁄𝑑.𝑓
Explanation
Integrate: 𝑑𝑥 𝑥 > 0
Answer: (B) 𝐶
Explanation
Find the extremum of 𝑢 = 𝑥2 + 𝑦2 + 𝑧2 subject to x + y + z = 1
Answer: (D) (𝑥̅, 𝑦̅, 𝑧̅) = (,, )
Explanation
The utility function of a consumer is given by 𝑈 = 𝑓(𝑞1, 𝑞2) = 𝑞1 × 𝑞2 suppose the price of 𝑞1 𝑖𝑠 𝑃𝑞1 = 1 and price 𝑞2 𝑖𝑠 𝑃𝑞2 = 2. The consumer wants to spend amount of k units only what will be his demand for 𝑞1 and 𝑞2?
Answer: (C) (𝑞1, 𝑞2) = (𝑘2, 𝑘4)
Explanation
A tariff ridden offer curve will bend towards.
Answer: (A) Import good axis
Explanation
Factor price equalization theorem is given by.
Answer: (C) Paul Samuelson
Explanation
In which of the following year IMF has set up the Extended Fluid Facility (EFF) to support member's structural reforms to address balance of payment difficulties of a long term character.
Answer: (A) 1974
Explanation
The book entitled "Why Nations Fail: The Origin of Power, Prosperity and Poverty" has been written by.
Answer: (B) Daron Acemoglu and James A. Robinson
Explanation
A foreign exchange swap is
Answer: (B) A spot sale of a currency combined with a forward repurchase of that currency.
Explanation
Which of following is a correct measure of gross fiscal deficit of the state government.
Answer: (C) Revenue Deficit + Capital Outlays + Net Lending
Explanation
Which of the following is not true in case of incidence of tax:
Answer: (C) One would be in a better position to avoid the tax and leave the seller with a larger part if demand is inelastic while supply is elastic.
Explanation
When MPS is 0.25 and initial increase in autonomous spending is Rs. 100. then the expenditure multiplier and resultant increase in GDP respectively are:
Answer: (C) 4, Rs. 400
Explanation
In the extreme case of liquidity trap
Answer: (B) Most of the investors will show bearish behaviour
Explanation
Which of the following can be an equation representing the money market
Answer: (A) 300 = 2Y - 1.5i
Explanation
With the same monetary base, which of the following will lead to an increase in broad money?
Answer: (D) Increase in financial literacy and banking habit
Explanation
According to Robinson the term 'Golden Age' in the context of Harrod-Domar model is used to emphasize
Answer: (A) Its mythical nature
Explanation
Which is not a dimension of Human Development Index (HDI)?
Answer: (D) Ability to access clean environment
Explanation
The idea of creative destruction is associated with
Answer: (D) Schumpeter
Explanation
Normalized Poverty Gap (NPG) is measured as a ratio of
Answer: (A) Average Poverty Gap to poverty line
Explanation
Which of the following defines ambient standards in an environmental policy
Answer: (C) A standard that designates the quality level of some element of the environment to be achieved.
Explanation
Which of the following applies to the physical linkage approach for the valuation of environmental benefits
Answer: (D) Methods that estimate benefits based on a technical relationship between an environmental resource and the user of that resource.
Explanation
Why subsidies are not an effective policy instrument in the long-run for internalizing externalities under competitive output markets?
Answer: (D) All of the above
Explanation
According to Sample Registration System, which of the following Indian States has the highest level of life time risk during 2018-2020.
Answer: (C) Madhya Pradesh
Explanation
The Intensive Agriculture District Programme (IADP) was launched in the year
Answer: (A) 1960-61
Explanation
Allocation of budget for Ministry of Agriculture and Farmers' Welfare in the Union Budget 2023-24 is
Answer: (B) 1.25 lakh crores
Explanation
What is the motto of G-20 18th meeting?
Answer: (A) One Earth. One Family. One Future
Explanation
Prevention of Money Laundering Act was enacted in the year
Answer: (B) 2002
Explanation
Which of the following holds for Bertrand's Duopoly model.
a. The reaction curves are derived from iso-profit maps which are convex to the axes.
b. The point of intersection of the two reaction curves reflects a stable equilibrium.
c. The reaction curves are derived from iso-profit maps which are concave to the axes.
d. The point of intersection of the two reaction curves reflects an unstable equilibrium.
e. Finn's behavioral pattern is such that they leam from past experience.
Choose the correct answer from the option given below:
Answer: (A) a and b only
Explanation
Which of the following is true for the Clark-Wicksteed-Walras product exhaustion theorem
a. The assumption of a homogeneous production function is necessary.
b. It is an identity that holds for all values of the variables.
c. The assumption of a homogeneous production function is not necessary.
d. It is not an identity since it holds only for the values of the variables in the long-run equilibrium.
e. It holds for all types of production functions.
Choose the correct answer from the option given below:
Answer: (D) c, d and e only
Explanation
Properties of expenditure function are (in the context of utility theory).
a. Homogeneous of degree one in price, P
b. Strictly increasing in utility, u and non-decreasing in price. P for any good 1.
c. Concave in P
d. Continuous in P and u
e. Strictly convex in P
Choose the correct answer from the option given below:
Answer: (C) a, b, c, d only
Explanation
The concept of "excess sensitivity" and "excess smoothness" are explained by following statement(s).
a. 'Excess sensitivity' refers to a situation where consumption over responds to temporary income shocks.
b. 'Excess smoothness' refers to a situation where consumption under responds to temporary income changes.
c. With excess sensitivity, anticipated rise in income is associated with relatively small change in consumption.
d. With excess smoothness, changes in aggregate income are associated with relatively large changes in aggregate consumption.
e. 'Excess sensitivity' and 'Excess smoothness' are related to the empirical evidences of permanent income hypothesis.
Choose the correct answer from the option given below:
Answer: (D) a, b, e only
Explanation
According to Tobin's Q theory of investment, when should a firm invest?
a. There is increase in the price of output
b. There is an increase in marginal product of capital
c. There is an increase in rate of interest
d. There is a decrease in rate of depreciation
e. Marginal benefit of investment exceeds marginal cost
Choose the correct answer from the option given below:
Answer: (C) a, b, d, e only
Explanation
Which of the following is are true about paradox of thrift?
a. Paradox of thrift was popularized by J. M. Keynes.
b. It states that personal savings can be detrimental to overall economic growth.
c. It shows the relationship between output growth and rate of unemployment.
d. It show's the relationship between inflation and rate of interest.
e. It states that individuals saving during an economic recession leads to fall in aggregate demand.
Choose the correct answer from the option given below:
Answer: (D) a, b, e only
Explanation
The BOP crisis of early 1990s made India borrow from the IMF which came on following conditions
a. Devaluation of rupee by 22%
b. Drastic custom cut to a peak duty of 30% from the erstwhile level of 130% for all goods
c. Consolidation of all indirect taxes into one tax
d. Excise duty to be increased by 20% to neutralize the loss of revenue due to custom cut
e. Government expenditure to be cut by 10% per annum.
Choose the correct answer form the option given below:
Answer: (D) a, b, d, e only
Explanation
The Uruguay Round of trade negotiations called for
a. The reduction of average tariffs on industrial goods
b. Quotas to be replaced by tariffs
c. The reduction in agriculture export subsidies
d. The reduction in industrial subsidies
e. Antidumping and safeguards to be relaxed
Choose the correct answer from the option given below:
Answer: (A) a, b, c, d only
Explanation
Pillar 1 of Basel III nouns focus on
a. Quality and level of capital
b. Risk Coverage
c. Containing leverage
d. Risk management and supervision
e. Market discipline
Choose the correct answer from the option given below
Answer: (A) a and b only
Explanation
Which of the following statements are correct about trilemma in monetary policy
a. It is related to closed economy model.
b. It involves exchange rate, capital mobility and monetary policy.
c. It arises because perfect capital mobility aligns the domestic interest rate to the world interest rate.
d. Flexible exchange rate is not compatible with independent monetary policy.
e. It is related to capital immobility and flexible exchange rate.
Choose the correct answer from the option given below:
Answer: (A) b and c only
Explanation
Based on the NITI Aayog estimate of poverty for the year 2011-12. the states with above 30 percent rural poverty are
a. Manipur
b. Bihar
c. Sikkim
d. Uttar Pradesh
e. Nagaland
Choose the correct answer from the option given below:
Answer: (D) a, b and d only
Explanation
Adam Smith contributions are
a. Division of labour
b. Notion of increasing returns
c. Notion of diminishing returns
d. Dialectical Materialism
e. Socially necessary abstract labour time
Choose the correct answer from the option given below:
Answer: (A) a and b only
Explanation
The components of services sector in Gross Value Added (GVA) are
a. Construction
b. Trade. Hotels. Transport and Communication related to Broadcasting
c. Electricity. Gas. Water supply and other utility services
d. Public Administration, Defense and other services
e. Financial, Real Estate and Professional services
Choose the correct answer from the option given below:
Answer: (C) a, b, d and e only
Explanation
Gunnar Myrdal is author of
a. Asian Drama
b. An American Dilemma
c. Theory of Economic Development
d. Principles of Political Economy
e. Economic Theory and underdeveloped regions
Choose the correct answer from the option given below:
Answer: (D) a, b and e only
Explanation
Which of the following are correct in case of theory of sets?
| Statement | Expression |
|---|---|
| A | (A B') (A' C) (B C') = (A B C) (A B C) |
| B | (A B') (A' C) (B C') = (A B C) (A B C)' |
| C | A (B C) = (A B) (A C) |
| D | A (B C) = (A B) (A C) |
| E | (A B') (A' C) (B C') = (A B C) (A' B' C') |
Set theory statements
Answer: (C) b, c, e only
Explanation
If S is a sample space and E is an event then the probability axioms can be written as
a. 𝑃(𝐴) ≥ 0
b. 𝑃(𝑆) = 1
c. 𝑃
d. 𝑃(𝐴) ≤ 0
e. 𝑃
Choose the correct answer from the option given below:
Answer: (D) a, b and c only
Explanation
Properties of sufficient estimators are
a. It may not be unbiased
b. It may be unbiased
c. It is always consistent
d. It is not always consistent
e. Minimum variance unbiased estimator
Choose the correct answer from the option given below:
Answer: (D) a, b, c and e only
Explanation
Which of the following are true in case of social goods:
a. Public goods are non-rivalry in nature.
b. Efficient provision of social goods needs a political process of budget determination.
c. Efficient provision of social goods involve horizontal rather than vertical addition of individual pseudo-demand-lines.
d. Among purely private and purely social goods, there are mixed cases which generate benefit or cost externalities
e. Individual consumers will not bid for social good, but will act as free-riders.
Choose the correct answer from the option given below:
Answer: (D) a, b, d and e only
Explanation
Which of the following are true in case of Ramsey Rule for efficient taxation -
a. Tax rate should be higher on the good that has lower price elasticity of demand.
b. If the demand elasticity in a market is zero, taxes should be imposed only in that markets.
c. Ramsey rule applies to taxation of goods, but not to taxation of income.
d. Ramsey rule minimises the excess burden of taxation across markets.
e. Ramsey rule does not necessarily result in social justice. Choose the most appropriate answer from the option given below:
Answer: (B) a, b, d and e only
Explanation
Which of the following are not symptoms of multicollinearity in a regression model.
a. High R2 with few significant t ratio for coefficients.
b. High pan-wise correlations among regressors.
c. The closer the Tolerance (TOLj) is to zero.
d. Variance Inflation Factor (VTF) of a variable is below 10.
e. The closer the Tolerance (TOLj) is to 1.
Choose the correct answer from the option given below:
Answer: (B) d and e only
Explanation
Which of the following are recommendations of the Narasimham Committee. 1991.
a. Deregulation of the interest rate structure.
b. Need for greater use of information technology.
c. Permitting only private sector banks to access the capital market.
d. Freedom to appoint chief executive and officers of the banks.
e. Capital adequacy nouns were implemented in stages.
Choose the correct answer from the option given below:
Answer: (C) a, d and e only
Explanation
Defensive expenditure method is based on the understanding that
a. The consumer spends money to ameliorate the damaging effects of the bad.
b. The defensive expenditure undertaken reflects the consumer's willingness to pay to reduce the level of the bad.
c. The observed defensive expenditure is an upper bound on the willingness to pay to avoid the bad.
d. The defensive expenditure provide no additional services other than provisioning the desired environmental quality.
e. The observed defensive expenditure is a lower bound on the willingness to pay to avoid the bad.
Choose the correct answer from the option given below:
Answer: (D) a, b, d and e only
Explanation
Which of the following constitutes India's strategy to combat climate change in the backdrop of its stand at the 26th session of the conference of the Parties (COP 26) to the UNFCCC held in Glasgow. U.K.
a. Phasing out of coal-based thermal power generation by 2030.
b. Reduction of the carbon intensity of Indian economy by 45 percent by 2030. Over 2005 levels.
c. Capping Indian economy total final energy consumption in absolute levels.
d. Achieving the target of net zero emissions for India by 2070.
e. Promoting lifestyle for environment to combat climate change.
Choose the correct answer from the option given below:
Answer: (C) b, d, e only
Explanation
Here is given international organisations and their headquarters. Which of the following are correct combinations of the institutions and then headquarters.
a. GATT: Geneva
b. IMF: Washington DC
c. World Bank: Washington DC
d. International Development Association (IDA): New York
e. Asian Development Bank: Mandaluyong
Choose the correct answer from the option given below:
Answer: (D) a, b, c and e only
Explanation
Which of the following is are correct about Walrasian demand function?
a. The Walrasian demand function X (P, W) is homogenous of degree zero if X ( P, W) = X (P, W) for any P, W and > 0.
b. The Walrasian demand function X (P, W) is homogenous of degree one if X ( P, W) = X (P, W) for any P, W and > 0.
c. The Walrasian demand function X (P, W) satisfies Walras' law if for every P >> 0 and W > 0, we have P X = W, for all A X (P, W).
d. Walras' law says consumer fully expends his wealth.
e. If price and wealth both change in same proportion, then individual consumption choice does not change.
Choose the correct answer from the option given below:
Answer: (D) a, c, d, e only
Explanation
Match List-I with List-II.
| List-I | List-II |
|---|---|
| a. Cost-effectiveness | i. A policy that directly regulates polluters through the use of standards. |
| b. Pollution permit trading system | ii. An incentive-based policy that encourages conservation practices or pollution reduction technologies. |
| c. Market approach | iii. Requires that the least amount of resources be used to achieve an objective. |
| d. Command-and-control approach | iv. A market instrument that establishes a market for rights to pollute. |
List-I and List-II
Answer: (D) a-iii, b-iv, c-ii, d-i
Explanation
Match List-I with List-II.
| List-I | List-II |
|---|---|
| a. Klein's rule of thumb | i. Structural break |
| b. Ljung-Box (LB) statistic | ii. Unit root |
| c. KPSS | iii. Significance of autocorrelation coefficients |
| d. Bai-Perron | iv. Multicollinearity |
List-I and List-II
Answer: (A) a-iv, b-iii, c-ii, d-i
Explanation
Match List-I with List-II.
| List-I | List-II |
|---|---|
| a. J. M. Keynes | i. Inventory-theoretic approach to transaction demand for money |
| b. Kydland-Prescott | ii. Liquidity preference |
| c. Baumol-Tobin | iii. Time inconsistency problem |
| d. Friedman-Schwartz | iv. Monetary History of the United States |
List-I and List-II
Answer: (D) a-ii, b-iii, c-i, d-iv
Explanation
Match List-I with List-II.
| List-I | List-II |
|---|---|
| a. Kuznets | i. Innovation and entrepreneurship |
| b. Nurkse | ii. Balanced growth theory |
| c. Leibenstein | iii. Inverted U-curve hypothesis |
| d. Schumpeter | iv. Critical minimum effort thesis |
List-I and List-II
Answer: (B) a- iii, b-ii, c-iv, d-i
Explanation
Match List-I with List-II.
| List-I (States) | List-II (Food grain production, 2021-22, thousand tonnes) |
|---|---|
| a. Telangana | i. 11266.0 |
| b. Jharkhand | ii. 4984.2 |
| c. Chhattisgarh | iii. 8897.0 |
| d. Andhra Pradesh | iv. 15095.4 |
List-I (States) and List-II (Food grain production, 2021-22, thousand tonnes)
Answer: (D) a-iv, b-ii, c-iii, d-i
Explanation
Match List-I with List-II.
| List-I | List-II |
|---|---|
| a. Tax evasion | i. Bond financing |
| b. Effective incidence of tax | ii. Illegal free riding |
| c. Legal incidence of tax | iii. Obliged to deliver tax revenue to government |
| d. Fiscal illusion | iv. Does not necessarily correspond to the person on whom tax is imposed |
List-I and List-II
Answer: (C) a-ii, b- iv, c-iii, d-i
Explanation
Match List-I with List-II.
| List-I (Type of India's population growth rate) | List-II (Period) |
|---|---|
| a. Rapid high growth | i. 1981-2011 |
| b. Stagnant population | ii. 1921-1951 |
| c. High growth with definite signs of slowing down | iii. 1951-1981 |
| d. Steady growth | iv. 1891-1921 |
List-I (Type of India's population growth rate) and List-II (Period)
Answer: (B) a-iii, b-iv, c-I, d-ii
Explanation
Match List-I with List-II.
| List-I (Policy) | List-II (Year) |
|---|---|
| a. National Forest Policy | i. 2000 |
| b. Marine Fishing Policy | ii. 1994 |
| c. New Mineral Policy | iii. 2004 |
| d. National Population Policy | iv. 1988 |
List-I (Policy) and List-II (Year)
Answer: (A) a-iv, b-iii, c-ii, d-i
Explanation
Match List-I with List-II.
| List-I | List-II |
|---|---|
| a. f'(x) > 0 and f''(x) > 0 | i |
| b. f'(x) > 0 and f''(x) < 0 | ii |
| c. f'(x) < 0 and f''(x) < 0 | iii |
| d. f'(x) < 0 and f''(x) > 0 | iv |
List-I and List-II
Answer: (C) a-iv, b-i, c-ii, d-iii
Explanation
Match List-I with List-II.
| List-I | List-II |
|---|---|
| a. Central Bank Loss Function | i. yt = A - art-1 |
| b. Monetary Rule (MR) | ii. pt = pt-1 + alpha(yt - ye) |
| c. Phillips Curve (PC) | iii. (yt - ye) = -alpha beta(pt - pT) |
| d. Dynamic IS Curve | iv. L = (yt - ye)^2 + beta(pt - pT)^2 |
List-I and List-II
Answer: (C) a-iv, b- iii, c-ii, d-i
Explanation
Arrange the relative weights in percentage assigned to following criteria by the XIV finance commission in ascending order.
a. Income distance
b. Area
c. Population (1971)
d. Demographic Change (2011 population)
e. Forest Cover
Choose the correct answer from the option given below:
Answer: (B) e, d, b, c, a
Explanation
Arrange the following in ascending order on the basis of degree of economic integration.
a. Custom Union
b. Free Trade Area
c. Economic Union
d. Common Market
e. Preferential Trade Arrangements
Choose the correct answer from the option given below:
Answer: (D) e, b, a, d, c
Explanation
Arrange states in ascending order based on loans from the central government for the year 2020- 21
a. Karnataka
b. Madhya Pradesh
c. Tamil Nadu
d. Gujarat
e. Maharashtra
Choose the correct answer from the option given below:
Answer: (A) c, b, d, a, e
Explanation
Arrange the following Acts in chronological order of their year of enactment starting from the oldest:
a. Foreign Exchange Regulation Act
b. Competition Act
c. MRTP Act
d. Foreign Regulation Act
e. Foreign Exchange Management Act
Choose the correct answer from the option given below:
Answer: (A) c, b, a, d, e
Explanation
Arrange the following in order to their year of establishment starting from oldest
a. The Industrial Credit and Investment Corporation of India (ICICI)
b. National Bank for Agricultural and Rural Development (NABARD)
c. The Industrial Finance Corporation of India (IFCI)
d. The Industrial Reconstruction Bank of India (IRBI)
e. Export-Import Bank of India
Choose the correct answer from the option given below:
Answer: (B) c, a, d, e, b
Explanation
Arrange the following chronologically in order of their publication starting from the oldest:
a. General Theory of Employment. Interest and Money
b. A Treatise on probability
c. Essays in Persuasion
d. The End of Laissez Faire
e. A Tract on Monetary Reform
Choose the correct answer from the option given below:
Answer: (B) b, e, d, c, a
Explanation
Arrange the following events of equity trading in India starting from the oldest:
a. The BSE introduced screen-based trading.
b. Foreign Institutional Investors (FIIs) are permitted to invest in the Indian Securities Market.
c. NSE commenced operations in wholesale debt market segment.
d. The SEBI banned badla trading on the BSE.
e. The NSE overtook the BSE as the largest stock exchange in terms of volume trading.
Choose the correct answer from the option given below:
Answer: (B) b, d, c, e, a
Explanation
Sequence of steps followed in the estimation of Indirect Least Square (ILS) starting from the beginning:
a. Identification of the structural equations
b. Application of OLS
c. Obtaining structural coefficients
d. Obtaining reduced form equation
e. Use the model for policy
Choose the correct answer from the option given below:
Answer: (A) a, d, b, c and e
Explanation
As per the total revenue received by the government under the head of GST on the domestic supply of goods and services for 2021-22 arrange the following states in ascending order:
a. Odisha
b. Rajasthan
c. Delhi
d. West Bengal
e. Madhya Pradesh
Choose the correct answer from the option given below:
Answer: (B) e, b, a, c, d
Explanation
According to the Census, 2011 arrange the states in the descending order based on the literacy rate (aged group 7 year and above):
a. Nagaland
b. Tripura
c. Sikkim
d. Manipur
e. Meghalaya
Choose the correct answer from the option given below:
Answer: (C) b, c, a, d, e
Explanation
Given below are two statements: Assertion (A): If governments do not care about protectionists' rents, they would replace all import duties with sales taxes. Reason (R): Sales tax is more efficient means of raising revenue than import tariff. In light of the above statements, choose the correct answer.
Answer: (A) Both A and R are true and R is the correct explanation of A.
Explanation
Given below are two statements: Statement I: Friedman's theory of the demand for money is partly Keynesian and partly nonKeynesian. Statement II: It is non-Keynesian in that Friedman neglects completely Keynes' clarification of the motives for holding money and the corresponding components of demand for money. In light of the above statements, choose the correct answer.
Answer: (A) Both Statement I and Statement II are true.
Explanation
Given below are two statements: Statement I: Under first degree price discrimination, monopolist sells different units of output for different prices and these prices may differ from person to person. Statement II: Under third degree price discrimination, monopolist sells different units of output for different prices, but every individual who buys the same amount of the good pays the same price. In light of the above statements, choose the correct answer.
Answer: (C) Statement I is true but Statement II is false.
Explanation
Given below are two statements: Statement I: The tarns of trade of a nation are defined as the ratio of the cost of its export commodity to the price of its import commodity. Statement II: The trams of trade of the trade partner are equal to the inverse of the terms of trade of the other nation. In light of the above statements, choose the correct answer.
Answer: (D) Statement I is false but Statement II is true.
Explanation
Given below are two statements: Statement I: Division of labour is the starting point of Smith's theory of economic growth. Statement II: It is division of labour that results in the greatest improvement in the productive power of labour. In light of the above statements, choose the correct answer.
Answer: (A) Both Statement I and Statement II are true.
Explanation
The Capex of the union government for the period FY 09 to FY 20 on an average was ___.
The government of India's fiscal policy response to the covid crises comprised of a judicious mix of increasing food and fertilizer subsidies on the one hand and a reduction in taxes on fuel and certain imported products on the other. Despite these additional fiscal pressures the union govt, is back on track. The resilience in the fiscal performance of the union government has been facilitated by the recovery in economic activity buoyancy in revenues from direct taxes and goods and services tax (GST) and realistic assumptions in the budget. The gross tax revenue registered a YoY growth of 15.5% from April to November 2022. driven by robust growth in the direct taxes and GST. The gross GST-correction has increased at 24.8% on YoY during the same period. The Union Government's emphasis on capital expenditure (capex) has continued despite higher revenue expenditure requirements during the year. The center's capex has steadily increased from a long term average of 1.7 percent of GDP (FY09 to FY20) to 2.5% of GDP in FY22 PA. The center has also incentivized the state governments through interest free loans and enhanced borrowing ceilings to prioritize their spending on capex. Government has boosted allocations on infrastructure intensive sectors such as roads and highways, railways and housing and urban affairs, which has bearing on capex. This increase in capex will have implication for medium term growth and sustainable government debt to GDP ratio.
Answer: (D) 1.7 percent of GDP
Explanation
Which of the following is not correct with respect to facilitation of resilience in fiscal performance of the union government:
The government of India's fiscal policy response to the covid crises comprised of a judicious mix of increasing food and fertilizer subsidies on the one hand and a reduction in taxes on fuel and certain imported products on the other. Despite these additional fiscal pressures the union govt, is back on track. The resilience in the fiscal performance of the union government has been facilitated by the recovery in economic activity buoyancy in revenues from direct taxes and goods and services tax (GST) and realistic assumptions in the budget. The gross tax revenue registered a YoY growth of 15.5% from April to November 2022. driven by robust growth in the direct taxes and GST. The gross GST-correction has increased at 24.8% on YoY during the same period. The Union Government's emphasis on capital expenditure (capex) has continued despite higher revenue expenditure requirements during the year. The center's capex has steadily increased from a long term average of 1.7 percent of GDP (FY09 to FY20) to 2.5% of GDP in FY22 PA. The center has also incentivized the state governments through interest free loans and enhanced borrowing ceilings to prioritize their spending on capex. Government has boosted allocations on infrastructure intensive sectors such as roads and highways, railways and housing and urban affairs, which has bearing on capex. This increase in capex will have implication for medium term growth and sustainable government debt to GDP ratio.
Answer: (C) Expenditure austerity measures pertaining to food and fertilizer subsidy
Explanation
Which of the following strategy is adopted by Union Government to prioritise States' spending on capex.
The government of India's fiscal policy response to the covid crises comprised of a judicious mix of increasing food and fertilizer subsidies on the one hand and a reduction in taxes on fuel and certain imported products on the other. Despite these additional fiscal pressures the union govt, is back on track. The resilience in the fiscal performance of the union government has been facilitated by the recovery in economic activity buoyancy in revenues from direct taxes and goods and services tax (GST) and realistic assumptions in the budget. The gross tax revenue registered a YoY growth of 15.5% from April to November 2022. driven by robust growth in the direct taxes and GST. The gross GST-correction has increased at 24.8% on YoY during the same period. The Union Government's emphasis on capital expenditure (capex) has continued despite higher revenue expenditure requirements during the year. The center's capex has steadily increased from a long term average of 1.7 percent of GDP (FY09 to FY20) to 2.5% of GDP in FY22 PA. The center has also incentivized the state governments through interest free loans and enhanced borrowing ceilings to prioritize their spending on capex. Government has boosted allocations on infrastructure intensive sectors such as roads and highways, railways and housing and urban affairs, which has bearing on capex. This increase in capex will have implication for medium term growth and sustainable government debt to GDP ratio.
Answer: (B) Incentivizing for interest free loans and enhance borrowing ceilings
Explanation
Which of the following strategies was not comprised India's Fiscal Policy response to Covid crises
The government of India's fiscal policy response to the covid crises comprised of a judicious mix of increasing food and fertilizer subsidies on the one hand and a reduction in taxes on fuel and certain imported products on the other. Despite these additional fiscal pressures the union govt, is back on track. The resilience in the fiscal performance of the union government has been facilitated by the recovery in economic activity buoyancy in revenues from direct taxes and goods and services tax (GST) and realistic assumptions in the budget. The gross tax revenue registered a YoY growth of 15.5% from April to November 2022. driven by robust growth in the direct taxes and GST. The gross GST-correction has increased at 24.8% on YoY during the same period. The Union Government's emphasis on capital expenditure (capex) has continued despite higher revenue expenditure requirements during the year. The center's capex has steadily increased from a long term average of 1.7 percent of GDP (FY09 to FY20) to 2.5% of GDP in FY22 PA. The center has also incentivized the state governments through interest free loans and enhanced borrowing ceilings to prioritize their spending on capex. Government has boosted allocations on infrastructure intensive sectors such as roads and highways, railways and housing and urban affairs, which has bearing on capex. This increase in capex will have implication for medium term growth and sustainable government debt to GDP ratio.
Answer: (D) Increase in taxes on fuel.
Explanation
In order to further enhance capex, allocation for which of the following infrastructure sector is not increased:
The government of India's fiscal policy response to the covid crises comprised of a judicious mix of increasing food and fertilizer subsidies on the one hand and a reduction in taxes on fuel and certain imported products on the other. Despite these additional fiscal pressures the union govt, is back on track. The resilience in the fiscal performance of the union government has been facilitated by the recovery in economic activity buoyancy in revenues from direct taxes and goods and services tax (GST) and realistic assumptions in the budget. The gross tax revenue registered a YoY growth of 15.5% from April to November 2022. driven by robust growth in the direct taxes and GST. The gross GST-correction has increased at 24.8% on YoY during the same period. The Union Government's emphasis on capital expenditure (capex) has continued despite higher revenue expenditure requirements during the year. The center's capex has steadily increased from a long term average of 1.7 percent of GDP (FY09 to FY20) to 2.5% of GDP in FY22 PA. The center has also incentivized the state governments through interest free loans and enhanced borrowing ceilings to prioritize their spending on capex. Government has boosted allocations on infrastructure intensive sectors such as roads and highways, railways and housing and urban affairs, which has bearing on capex. This increase in capex will have implication for medium term growth and sustainable government debt to GDP ratio.
Answer: (A) Ports and Waterways
Explanation
Adjusted Net Saving (ANS) is
GDP growth is the most widely used macroeconomic indicator for adjudicating broad economic progress. The outcomes from decisions made on the basis of such an indicator have been repeatedly disappointing because of failures to detect resource uses that turn out to be unsustainable. Adjusted Net Savings (ANS) provides a complementary indicator to help in understanding the changes in wealth and not per capita wealth, by capturing some of the important policy-induced dynamics. Based on the conventions of the System of National Accounts (SNA). ANS is measured as Gross National Saving minus depreciation of produced capital, depletion of subsoil assets and timber resources, and air pollution damages to human health, plus a credit for expenditures on education. If ANS is negative, the county is running down its capital stocks and possibly reducing future material well-being. If ANS is positive the country is adding to wealth and future material well-being. When natural resource depletion is not used to invest in other assets in the wealth portfolio, countries gross saving might not be enough to compensate this depletion resulting in negative net savings. However, nations with higher GDP are far less likely to obtain negative ANS. It is argued that, if not a superior indicator of sustainability. ANS is useful to the extent that it can serve as an indicator of unsustainability. Hence, the estimates and conceptualization of ANS are not free from limitations.
Answer: (C) A flow variable
Explanation
Which of the following is not the constituent of ANS?
GDP growth is the most widely used macroeconomic indicator for adjudicating broad economic progress. The outcomes from decisions made on the basis of such an indicator have been repeatedly disappointing because of failures to detect resource uses that turn out to be unsustainable. Adjusted Net Savings (ANS) provides a complementary indicator to help in understanding the changes in wealth and not per capita wealth, by capturing some of the important policy-induced dynamics. Based on the conventions of the System of National Accounts (SNA). ANS is measured as Gross National Saving minus depreciation of produced capital, depletion of subsoil assets and timber resources, and air pollution damages to human health, plus a credit for expenditures on education. If ANS is negative, the county is running down its capital stocks and possibly reducing future material well-being. If ANS is positive the country is adding to wealth and future material well-being. When natural resource depletion is not used to invest in other assets in the wealth portfolio, countries gross saving might not be enough to compensate this depletion resulting in negative net savings. However, nations with higher GDP are far less likely to obtain negative ANS. It is argued that, if not a superior indicator of sustainability. ANS is useful to the extent that it can serve as an indicator of unsustainability. Hence, the estimates and conceptualization of ANS are not free from limitations.
Answer: (D) Loss of biodiversity
Explanation
Which of the following explains the decline in ANS in countries with increasing GDP per capita?
GDP growth is the most widely used macroeconomic indicator for adjudicating broad economic progress. The outcomes from decisions made on the basis of such an indicator have been repeatedly disappointing because of failures to detect resource uses that turn out to be unsustainable. Adjusted Net Savings (ANS) provides a complementary indicator to help in understanding the changes in wealth and not per capita wealth, by capturing some of the important policy-induced dynamics. Based on the conventions of the System of National Accounts (SNA). ANS is measured as Gross National Saving minus depreciation of produced capital, depletion of subsoil assets and timber resources, and air pollution damages to human health, plus a credit for expenditures on education. If ANS is negative, the county is running down its capital stocks and possibly reducing future material well-being. If ANS is positive the country is adding to wealth and future material well-being. When natural resource depletion is not used to invest in other assets in the wealth portfolio, countries gross saving might not be enough to compensate this depletion resulting in negative net savings. However, nations with higher GDP are far less likely to obtain negative ANS. It is argued that, if not a superior indicator of sustainability. ANS is useful to the extent that it can serve as an indicator of unsustainability. Hence, the estimates and conceptualization of ANS are not free from limitations.
Answer: (B) Depleted assets not offset by sufficient investment in human and physical capital
Explanation
Which of the following reflects the shortcomings of ANS?
GDP growth is the most widely used macroeconomic indicator for adjudicating broad economic progress. The outcomes from decisions made on the basis of such an indicator have been repeatedly disappointing because of failures to detect resource uses that turn out to be unsustainable. Adjusted Net Savings (ANS) provides a complementary indicator to help in understanding the changes in wealth and not per capita wealth, by capturing some of the important policy-induced dynamics. Based on the conventions of the System of National Accounts (SNA). ANS is measured as Gross National Saving minus depreciation of produced capital, depletion of subsoil assets and timber resources, and air pollution damages to human health, plus a credit for expenditures on education. If ANS is negative, the county is running down its capital stocks and possibly reducing future material well-being. If ANS is positive the country is adding to wealth and future material well-being. When natural resource depletion is not used to invest in other assets in the wealth portfolio, countries gross saving might not be enough to compensate this depletion resulting in negative net savings. However, nations with higher GDP are far less likely to obtain negative ANS. It is argued that, if not a superior indicator of sustainability. ANS is useful to the extent that it can serve as an indicator of unsustainability. Hence, the estimates and conceptualization of ANS are not free from limitations.
Answer: (D) All of the above
Explanation
The concept of ANS should at best be used to
GDP growth is the most widely used macroeconomic indicator for adjudicating broad economic progress. The outcomes from decisions made on the basis of such an indicator have been repeatedly disappointing because of failures to detect resource uses that turn out to be unsustainable. Adjusted Net Savings (ANS) provides a complementary indicator to help in understanding the changes in wealth and not per capita wealth, by capturing some of the important policy-induced dynamics. Based on the conventions of the System of National Accounts (SNA). ANS is measured as Gross National Saving minus depreciation of produced capital, depletion of subsoil assets and timber resources, and air pollution damages to human health, plus a credit for expenditures on education. If ANS is negative, the county is running down its capital stocks and possibly reducing future material well-being. If ANS is positive the country is adding to wealth and future material well-being. When natural resource depletion is not used to invest in other assets in the wealth portfolio, countries gross saving might not be enough to compensate this depletion resulting in negative net savings. However, nations with higher GDP are far less likely to obtain negative ANS. It is argued that, if not a superior indicator of sustainability. ANS is useful to the extent that it can serve as an indicator of unsustainability. Hence, the estimates and conceptualization of ANS are not free from limitations.
Answer: (B) Serve as an indicator of unsustainability
Explanation
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