UGC NET ECONOMICS · 2022 · UNIT 6
Public Economics PYQs
लोक अर्थशास्त्र के प्रश्न
December2021/June2022 merged · 8October2022
दिसंबर2021/जून2022 संयुक्त · 8अक्टूबर2022
Budget and public debt
बजट और सार्वजनिक ऋण
Question 16 / प्रश्न 16
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Classical public-debt views: A future financing burden; B diversion from productive private employment; C currency depreciation and deflation necessarily; D interest and amortisation funding; E debt necessarily promotes productive activity.
Classical debt critique: A future finance burden; B private productive capital diversion; C depreciation और deflation necessarily; D interest/amortisationpayments; E debt necessarily productive।
(a) A, E और B केवल
(b) C, D और E केवल
(c) E, D और A केवल
(d) A, B और D केवल
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (d) A, B और D केवल
Explanation: The classical critique emphasises financing burdens, private-capital diversion, and debt-service obligations.
व्याख्या: A B D classical concerns हैं। Currency depreciation/deflation automatic joint result नहीं। Debt financed productive projects benefits दे सकते हैं, लेकिन classical critique उसके सार्वभौम productive होने का claim नहीं करती।
Question 38 / प्रश्न 38
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Primary deficit is given by ______
Primarydeficit का formula?
(a) Fiscaldeficit−interest।
(b) Revenuedeficit−interest।
(c) Budgetdeficit−interest।
(d) RR−RE।
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (a) Fiscaldeficit−interest।
Explanation: Primary deficit equals fiscal deficit minus interest payments.
व्याख्या: Primarydeficit current fiscal gap से existing debt interest हटाता है। Example FD100, interest70 ⇒PD30।
Question 53 / प्रश्न 53
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Tools of expansionary Fiscal policy include A. Raising Government exponditure B. Reducing Government expenditure C. Increasing tax rate D. Reducing tax rate E. Increasing money supply
Expansionary fiscal: A G↑; B G↓; C tax rate↑; D tax rate↓; E money↑।
(a) A, D केवल
(b) B, C केवल
(c) A, D, E केवल
(d) B, C, E केवल
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (a) A, D केवल
Explanation: Higher government spending and lower taxes are fiscal expansion; money supply is a monetary instrument.
व्याख्या: G↑ और T↓ aggregate demand expand करते हैं। Money↑ monetary expansion है, fiscal instrument अपनेआप नहीं।
Question 72 / प्रश्न 72
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Which of the following strategy is not correct in order to have expansionary impact of fiscal policy?
Fiscal expansion के लिए कौन unreliable claim?
(a) Borrowedspending।
(b) Spending केवल increasedtaxes से finance करना जरूरी।
(c) Publicinvestment।
(d) Taxcut।
Answer & Explanation / उत्तर और व्याख्या
Explanation: Tax finance partly offsets spending, but even a balanced-budget increase can expand output in the simple model.
व्याख्या: Higher current taxes spending stimulus को partly offset करते हैं। लेकिन simple model balanced budget multiplier1 होने से equal G/Tincrease भी expansionary हो सकती है; इसलिए (b) को “no expansion possible” universal statement नसमझें।
Public goods and externalities
सार्वजनिक वस्तुएँ और बाह्यताएँ
Question 39 / प्रश्न 39
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Match List I with List II.
Goods और properties match करें।
| ListI सूचीI |
ListII सूचीII |
|---|---|
| A Purepublic शुद्धसार्वजनिक |
I Nonrival, excludable अगैरप्रतिद्वंद्वी, अपवर्जनीय |
| B Pureprivate शुद्धनिजी |
II Rival, nonexcludable प्रतिद्वंद्वी, गैरअपवर्जनीय |
| C Open access खुलीपहुँच |
III Nonrival, nonexcludable गैरप्रतिद्वंद्वी, गैरअपवर्जनीय |
| D Congestibleclub भीड़योग्यक्लब |
IV Rival, excludable प्रतिद्वंद्वी, अपवर्जनीय |
(a) III IV I II
(b) III IV II I
(c) I II III IV
(d) III II I IV
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (b) III IV II I
Explanation: The matching distinguishes public, private, common-pool, and club goods; congestion changes rivalry at capacity.
व्याख्या: AIII BIV CII DI intended। Congestible club good capacity सेपहले joint consumption nonrival हो सकती है; congestion होने पर partial rivalry आती है। इसलिए D को purely nonrival at all levels नसमझें।
Question 85 / प्रश्न 85
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The provision for social goods, or the process by which total resource use is divided between private and social goods and by which the mix of social goods is choosen is known as _____.
Private/social goods में resources काबँटवारा किस fiscal function में?
(a) Allocation।
(b) Distribution।
(c) Stabilisation।
(d) Normalisation।
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (a) Allocation।
Explanation: Musgrave’s allocation function determines resource division and the public-good mix.
व्याख्या: Musgrave allocation function resources काउपयोग/public goods mix तय करती है। Distribution income equity और stabilisation aggregate activity सेजुड़ी है।
Taxation and incidence
कराधान और कर भार
Question 43 / प्रश्न 43
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Given below are two statements: Statement I: If you bought a product which now becomes subject to tax, you will be in a better position to avoid the tax and the seller bears with a larger part if your demand is elastic while seller's supply is inelastic. Statement II: A tax on salt is likely to be borne by the consumer. In the light of the above statements,
I elastic demand/inelastic supply में seller more burden; II salt tax mostly consumer borne।
(a) दोनों सही।
(b) दोनों गलत।
(c) I सही II गलत।
(d) I गलत II सही।
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (a) दोनों सही।
Explanation: The relatively inelastic side bears more tax; necessities such as salt commonly have inelastic demand.
व्याख्या: Relatively inelastic side tax burden अधिक bear करती है। Salt necessities की demand generally inelastic है; actual incidence supply elasticity परभीनिर्भर है।
Finance Commissions
वित्त आयोग
Question 68 / प्रश्न 68
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Criteria and weights assigned by the Fifteenth Finance Commission of India for Horizontal Devolution: A. Area B. Forest and Ecology C. Income Distance D. Tax and Fiscal efforts E. Demographic performance
XVFClistedcriteriaweights ascending: A area; B forest/ecology; C income distance; D tax effort; E demographic performance।
(a) D, B, E, A, C
(b) B, D, A, E, C
(c) E, A, D, C, B
(d) A, D, B, C, E
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (a) D, B, E, A, C
Explanation: The listed XVFC weights rise2.5,10,12.5,15,45%.
व्याख्या: D2.5%, B10%, E12.5%, A15%, C45% gives D B E A C। Population15% भी criterion है, लेकिन question list में नहीं।
December2022 · 2March2023 · ShiftI
दिसंबर2022 · 2मार्च2023 · पालीI
Budget and public debt
बजट और सार्वजनिक ऋण
Question 12 / प्रश्न 12
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Government spending is.
Basic income expenditure model में government spending?
(a) Autonomousexpenditure का component।
(b) Policymakerscontrol करते।
(c) Currentincome पर directlydepend नहीं।
(d) सभी।
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (d) सभी।
Explanation: The basic model treats government spending as exogenous autonomous expenditure.
व्याख्या: G को exogenous policy variable मानते हैं। Realworldautomaticstabilisers/transfers income से respond कर सकते हैं; यह simple model classification है।
Question 32 / प्रश्न 32
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The greater the divergence between the shadow price and the market price.
Shadow price और market price में gap अधिकहोतो?
(a) Social CBA की need अधिक।
(b) Need कम।
(c) सभी publicbenefitszero।
(d) Socialcostminimum।
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (a) Social CBA की need अधिक।
Explanation: Larger market/shadow-price gaps make social cost-benefit adjustments more important.
व्याख्या: Shadow prices social opportunity cost/benefit reflect करते हैं। Largepricewedges market valuations से project ranking distort कर सकते हैं, इसलिए economic CBAadjustments अधिकमहत्वपूर्ण हैं।
Question 71 / प्रश्न 71
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Match List I with List II.
Public finance concepts match करें।
| ListI सूचीI |
ListII सूचीII |
|---|---|
| A Functionalfinance कार्यात्मकवित्त |
I Peacock–Wiseman पीकॉकवाइज़मैन |
| B Displacement विस्थापन |
II Keynes/Lerner कीन्सलर्नर |
| C Stateactivitylaw राज्यगतिविधिनियम |
III Wagner वैगनर |
| D Allocation/distribution/stabilisation तीनराजकोषीयकार्य |
IV Musgrave मसग्रेव |
(a) A-II, B-I, C-III, D-IV
(b) A-IV, B-I, C-III, D-II
(c) A-II, B-III, C-I, D-IV
(d) A-I, B-II, C-IV, D-III
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (a) A-II, B-I, C-III, D-IV
Explanation: Functional finance, Lerner; displacement, Peacock–Wiseman; state activity, Wagner; three fiscal branches, Musgrave.
व्याख्या: Functional finance particularly Abba Lerner; displacement Peacock Wiseman; public spending growth Wagner; three branches Musgrave। AII BI CIII DIV।
Question 79 / प्रश्न 79
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Arrange the following stages of the Budget in the correct sequence. A. Appropriation Bill B. General Discussion C. Finance Bill D. Presentation to the Legislative Assembly E. Voting the Demand for Grants
Budget stages: A Appropriation; B general discussion; C Finance Bill; D presentation; E demands voting।
(a) B, C, E, A, D
(b) A, B, E, C, D
(c) D, A, C, B, E
(d) D, B, A, C, E
Answer & Explanation / उत्तर और व्याख्या
उत्तर: कोई option सही नहीं
Explanation: Demands must be voted before appropriation; the correct sequence D, B, E, A, C is absent.
व्याख्या: Usual passing sequence presentation→general discussion→demands voting→appropriation→finance bill। Finance Bill introduction की date और final passage को अलग समझें। Listed(d) grants voting को appropriation के बाद रखता है, जो गलत है।
Question 87 / प्रश्न 87
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Given below are two statements. Statement I: A rising ratio of interest payments to GNP imposes a burden because taxation is needed to finance the interest payment and imposes a dead weight loss. Statement II: A rising rate of interest payment in the budget tends to crowd out other public programs. In light of the above statements,
I Interest/GNP↑से distortionary tax burden; II interest budget share↑other programmes crowdout।
(a) दोनों सही।
(b) दोनों गलत।
(c) I सही II गलत।
(d) I गलत II सही।
Answer & Explanation / उत्तर और व्याख्या
उत्तर: संभावित channels
Explanation: Interest service can require distortionary taxation and compress other spending, conditional on financing choices.
व्याख्या: Higher debt service के लिए tax finance कीजरूरत DWL देसकतीऔर fixed budget में otherprogrammescompress हो सकते हैं। ये possible risks हैं, हर interest increase पर automatic net welfare loss नहीं; debt financed assets के benefits भी compare करें।
Question 88 / प्रश्न 88
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Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): The low income countries are far more likely to borrow money to finance their public sector expenditure. Reason (R): Governments need not repay their loans, along with interest payment. In light of the above statements
A Low income countries को public spending finance के लिए borrowing need; R governments को principal/interestrepayn हीं करना।
(a) दोनों सही Rexplanation।
(b) दोनों सही Rexplanation नहीं।
(c) Aintendedtrue, Rfalse।
(d) Afalse, Rtrue।
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (c) Aintendedtrue, Rfalse।
Explanation: Limited tax capacity can create borrowing needs, but governments still owe principal and interest.
व्याख्या: Low tax capacity financing gap बढ़ासकती है; borrowing need/high income countries से“far more likely”universal empirical rule नहीं। R स्पष्ट गलत: debt contracts principal/interest obligations बनाते हैं, rollover obligation कोमिटाता नहीं।
Question 89 / प्रश्न 89
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Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): Partisan theory views macroeconomic policy outcomes as the result of ideologically motivated decisions by leaders of different political parties. Reason (R): The parties represent constituencies with different preferences concerning macroeconomic variables. In light of the above statements,
A Partisan theory में ideologicalpolicyoutcomes; R parties की constituencies की macro preferences अलग।
(a) दोनों सही, Rexplanation।
(b) दोनों सही, explanation नहीं।
(c) A सही R गलत।
(d) A गलत R सही।
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (a) दोनों सही, Rexplanation।
Explanation: Different constituency preferences explain partisan differences in macroeconomic policy.
व्याख्या: Parties different voter groups की inflation/unemployment/redistribution preferences represent करती हैं, इसलिए ideologicalchoicespolicyoutcomes अलग कर सकती हैं। यही reason assertion समझाता है।
Taxation and incidence
कराधान और कर भार
Question 25 / प्रश्न 25
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A toll is a tax on those citizens who use toll roads. This policy can be viewed as an application of.
Road users से toll लेना किस principle काउदाहरण?
(a) Benefitprinciple।
(b) Horizontalequity।
(c) Verticalequity।
(d) Progressivity।
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (a) Benefitprinciple।
Explanation: A road toll charges users for benefits received.
व्याख्या: User जिस service से benefit पाताहैउसके cost में contribute करता है। Toll की charge ability अपनेआप income progressivity या equal ability treatment नहीं दर्शाती।
Question 55 / प्रश्न 55
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Which of the following are required for a good tax system? A. Revenue yield should be adequate. B. Tax system should be so that different income groups of people pay tax equally. C. Adiminstrative and compliance cost of tax should be as minimum as possible. D. Tax system should not permit scope for tax leakage and tax evasion. E. Tax should be chosen to maximise interference with market efficiency.
Good tax system: A adequate revenue; B different incomes identical tax; C low admin/compliance cost; D low evasion; E maximum distortion।
(a) A और C केवल
(b) A, C और E केवल
(c) A, C और D केवल
(d) A, B, C और D केवल
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (c) A, C और D केवल
Explanation: Adequate revenue, low compliance/administration costs, and limited evasion are desirable.
व्याख्या: A C D desirable। Equity ability to pay कोदेखती है, हर income पर same amount नहीं। Efficiency unnecessary distortions minimise करती है, maximum नहीं।
Public goods and externalities
सार्वजनिक वस्तुएँ और बाह्यताएँ
Question 27 / प्रश्न 27
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The Free-rider problem arises.
Free riding problem कबप्रमुख?
(a) Congestibilityalone।
(b) Rivalryalone।
(c) Exclusiondifficult और manybeneficiaries।
(d) Firstcomefirstservedstockonly।
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (c) Exclusiondifficult और manybeneficiaries।
Explanation: Nonexcludability allows non payers to benefit, weakening voluntary contributions.
व्याख्या: Nonexcludability में payer नहोकरभी benefit मिलता है, इसलिए voluntary contribution कम हो सकती है। Large groups individual incentive और coordination problem बढ़ाते हैं।
Finance Commissions
वित्त आयोग
Question 56 / प्रश्न 56
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Federal transfers to states are required mainly. A. To offset unequal assignment of resources and responsibilities between Federal Government and State Government. B. To correct spillovers of benefits of public goods between jurisdictions. C. To address horizontal fiscal imbalances. D. To argument resources of local bodies. E. For overall efficiency of tax system.
Federal transfers: A vertical gap; B spillovers; C horizontal imbalance; D local body resources; E tax system efficiency।
(a) A, B और C केवल
(b) A, C और D केवल
(c) A, B, C और D केवल
(d) A, B, C, D और E
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (d) A, B, C, D और E
Explanation: Transfers address vertical/horizontal gaps, spillovers, local resources, and tax-system efficiency.
व्याख्या: A–E rationales हैं। Vertical resource-responsibilitymismatch, horizontal fiscal capacity differences और cross-border benefits grants design को justify करते हैं; incentives/accountability design महत्वपूर्ण है।
December2022 · 2March2023 · ShiftII
दिसंबर2022 · 2मार्च2023 · पालीII
Finance Commissions
वित्त आयोग
Question 21 / प्रश्न 21
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Who was the chairman of 14th Finance Commission in India?
14th Finance Commissionchair?
(a) Dr. Vijay Kelkar
(b) Dr. Y.V. Reddy
(c) Dr. C. Rangrajan
(d) Dr. N.K. Singh
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (b) Dr. Y.V. Reddy
Explanation: YVReddy chaired the14th Finance Commission.
व्याख्या: Y V Reddy14th FCchair थे। Vijay Kelkar13th और N K Singh15th FC सेसंबंधित हैं।
Question 52 / प्रश्न 52
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Which of the following are correct for the Finance Commission? A. It is constitued under Article 380 of the Constitution. B. It is a statutory body. C. It is constituted under Article 280 of the Constitution. D. Prof. K.C. Pant was Chairman of 10th Finance Commission E. Dr. Vijay Kelkar was Chairman of 14th Finance Commission.
FC: A Article380; B statutory body; C Article280; D10thchair KCPant; E14thchair Kelkar।
(a) B, C और D केवल
(b) A, B और D केवल
(c) C, D और E केवल
(d) A, C और E केवल
Answer & Explanation / उत्तर और व्याख्या
उत्तर: कोई exact option नहीं
Explanation: The commission is constitutional under Article280; only C, Dare correct, and not offered.
व्याख्या: FCconstitutionalbodyunder Article280 है, केवल statutory body नहीं। KCPant10th FCchair और YVReddy14th थे; Kelkar13th थे। इसलिए C, Donly, जो options में नहीं।
Taxation and incidence
कराधान और कर भार
Question 24 / प्रश्न 24
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Suppose ‘X’ place Rs. 8 value on one bread packet and ‘Y’ places Rs. 6 value on it. If there is no tax on bread, then price of bread packet is Rs. 5 so both X and Y choose to buy one packet each. Now suppose government levies a tax of Rs. 2 per unit, the price of bread rises to Rs. 7. Then the deadweight loss and tax revenue collected respectively are.
Bread WTPX8, Y6, cost/initial price5; tax2 से consumer price7 में DWL/revenue?
(a) Rs. 1 और Rs. 2
(b) Rs. 2 और Rs. 4
(c) Rs. 2 और Rs. 2
(d) Rs. 1 और Rs. 4 X Y
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (a) Rs. 1 और Rs. 2
Explanation: Only Xstill buys:tax revenue2and lost Ytrade surplus1.
व्याख्या: Tax के बाद केवल Xbuy करता है: revenue2×1=2। Y की lost trade value6−resource cost5=1DWL है। X क ataxpaymenttransfer है, DWL नहीं।
Question 53 / प्रश्न 53
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Which of the following are true? A. Product taxes will raise prices less under monopoly than under competition. B. A tax on capital income tends to be progressive, wheareas tax on wage income tends to be regressive C. The burden of tax will be distributed between sellers and buyers in the ratio of elasticity of demand to that of supply. D. A unit tax enters through a parallel downward shift in the supply schedule. E. Imposition of tax raises price and quantity.
Tax claims: A monopoly pass-through हमेशाकम; B capital tax progressive/wage regressive; C seller:buyer burden=Ed:Es; D supply down shift; E price/quantity दोनों ↑।
(a) A और B केवल
(b) A, B और C केवल
(c) A, B, C और D केवल
(d) A, B, C और E केवल
Answer & Explanation / उत्तर और व्याख्या
उत्तर: कोई unqualifiedcombination नहीं
Explanation: Pass-through and distributional generalisations require assumptions; unit tax shifts supply up, not down.
व्याख्या: C competitive partial-equilibrium local incidence ratio सही है। Dtaxsupply UP shift और Equantityfall होती है। A pass through demand curvature पर depend करती है, Bdistributionalcontext पर। Hence A को universal true मानकर(b)नचुनें।
Budget and public debt
बजट और सार्वजनिक ऋण
Question 25 / प्रश्न 25
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The component which distinguish primary deficit from fiscal deficit is.
Fiscal और primarydeficit के बीच difference?
(a) Nondebtcapitalreceipts।
(b) Interestpayments।
(c) Debtcapitalreceipts।
(d) Revenuedeficit।
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (b) Interestpayments।
Explanation: Interest payments are subtracted from fiscal deficit to obtain primary deficit.
व्याख्या: Primarydeficit=fiscal deficit−interest payments। Difference existing debt service है, नई borrowing का पूरा amount नहीं।
Public goods and externalities
सार्वजनिक वस्तुएँ और बाह्यताएँ
Question 54 / प्रश्न 54
PDF page 270 / PDF पृष्ठ 270
Which of the following are correct? A. A competitive market can secure efficient resource use in the provision of private goods, but market failure occurs in that of social goods B. Efficient provision of social goods involves horizontal rather than vertical addition of Individual pseudo – demand schedules C. To seek efficient provision of social goods, a political process of budget determination is needed D. Corrective action may be needed when consumer choice is based on false advertising E. There are mixed cases between the extremes of purely private and purely social goods.
Social goods: A private-good competition can be effective/public failure; B horizontal demand aggregation; C budget collective choice; D falseadcorrection; E mixed goods।
(a) A, B और C केवल
(b) A, B और E केवल
(c) A, B, C और D केवल
(d) A, C, D और E केवल
Answer & Explanation / उत्तर और व्याख्या
उत्तर: (d) A, C, D और E केवल
Explanation: Social-good marginal benefits add vertically; A, C, D, Efit the intended statements.
व्याख्या: A C D E intended। Publicgoodswillingnesstopayverticallysum होती है; Bhorizontal गलत है। Competition efficiency Ausualcomplete-market/no externality assumptions पर है।