UGC NET Economics June 2025 Unit 6: Public Economics PYQs (English–Hindi)

Wagner’s positive theory links development and rising per capita income with a growing relative role of government and demand for public services. The war displacement effect and a stepwise jump in expenditure are associated more closely with Peacock Wiseman, not Wagner’s law.
Wagner की positive theory में development और rising per capita income के साथ government का relative role तथा public services की demand बढ़ती है। War displacement effect और stepwise expenditure jump अधिकतर Peacock Wiseman से जुड़े हैं, Wagner law से नहीं।

A positive theory explains observed behaviour; it is not a prescription that every expenditure increase is desirable. The requested answer is the false pair D E.
Positive theory observed behaviour explain करती है; हर expenditure increase को desirable घोषित नहीं करती। यहाँ false statements का pair D E पूछा गया है।

A lump sum tax lowers disposable income but does not directly change relative prices or marginal incentives. It therefore has an income effect and no direct substitution effect. Printed option (b) reverses these two effects.
Lump sum tax disposable income घटाता है, लेकिन directly relative prices या marginal incentives नहीं बदलता। इसलिए इसका income effect होता है, direct substitution effect नहीं। Option (b) दोनों effects उलट देता है।

Example: an unconditional fixed ₹100 tax reduces purchasing power regardless of the quantity bought. A per unit commodity tax instead changes the relevant relative price and can distort purchases. The book explanation denying both effects for a lump sum tax is incorrect.
Example: unconditional fixed ₹100 tax, खरीदी quantity से अलग, purchasing power घटाता है। Per unit commodity tax relative price बदलता और purchases distort कर सकता है। Lump sum tax में दोनों effects को नकारने वाली book explanation गलत है।

An ordinary freely accessible sidewalk is difficult to exclude people from. When it is crowded, one more user reduces others’ space and ease of movement, so use becomes rival. This is a congestible common resource case.
सामान्य freely accessible sidewalk से लोगों को exclude करना कठिन है। Crowded होने पर एक extra user दूसरों की जगह और movement कम करता है, इसलिए use rival हो जाता है। यह congestible common resource का case है।

An uncrowded sidewalk may be approximately nonrival over some range. The word crowded determines the intended answer.
Uncrowded sidewalk कुछ range तक approximately nonrival हो सकता है। यहाँ crowded शब्द answer तय करता है।

Unpriced external costs or benefits separate private incentives from social costs or benefits. A negative production externality has marginal social cost above marginal private cost and tends to cause overproduction; a positive externality can cause underproduction. Ordinary uncorrected market choices need not be efficient, so C is false.
Unpriced external costs या benefits से private incentives और social costs या benefits अलग हो जाते हैं। Negative production externality में marginal social cost, marginal private cost से अधिक और output जरूरत से अधिक होता है; positive externality में underproduction हो सकती है। इसलिए uncorrected market efficiency वाला C गलत है।

E says property rights can solve the problem, not that rights alone always do so. Coasian bargaining requires enforceable rights and sufficiently low transaction costs. D uses the standard negative production externality interpretation.
E में property rights समस्या solve कर सकते हैं कहा है; केवल rights हमेशा पर्याप्त नहीं। Coasian bargaining के लिए enforceable rights और sufficiently low transaction costs चाहिए। D standard negative production externality interpretation में है।

In the official Rupee Goes To chart the rounded shares are pensions 4%, major subsidies 6%, Finance Commission and other transfers 8%, the specified central sector schemes 16%, and interest payments 20%. Thus 4 < 6 < 8 < 16 < 20.
Official Rupee Goes To chart में rounded shares हैं pensions 4%, major subsidies 6%, Finance Commission and other transfers 8%, specified central sector schemes 16%, interest payments 20%। इसलिए 4 < 6 < 8 < 16 < 20 है।

Correction: major subsidies are 6%, not the 8% printed in the book explanation. The chart includes states’ share of taxes and duties in its overall presentation; do not use these shares as percentages of the Centre’s net expenditure table without adjusting the denominator.
Correction: major subsidies 6% हैं; book explanation का 8% गलत है। Chart की overall presentation में states का tax share शामिल है; denominator adjust किए बिना इन्हें Centre की net expenditure table के percentages न मानें।

The official Rupee Comes From chart gives income tax including securities transaction tax 22%, customs 4%, corporation tax 17%, and Union excise duties 5%. Therefore the matching is A III B I C IV D II.
Official Rupee Comes From chart में income tax including securities transaction tax 22%, customs 4%, corporation tax 17% और Union excise duties 5% हैं। Matching A III B I C IV D II है।

These are rounded shares of the chart’s total financing receipts including borrowings, not shares of tax revenue alone.
ये chart की total financing receipts, जिसमें borrowings भी हैं, के rounded shares हैं; केवल tax revenue के shares नहीं।

The intended sequence is Chelliah → Rekhi → Kelkar → Rastogi → Shome. Chelliah’s tax reforms committee was formed in 1991; Rekhi’s customs and excise review belongs to the early 1990s; Kelkar’s tax task forces were in 2002. The later Rastogi service tax circular review precedes the Shome GAAR review of 2012.
Intended क्रम है Chelliah → Rekhi → Kelkar → Rastogi → Shome। Chelliah tax reforms committee 1991, Rekhi customs excise review early 1990s और Kelkar tax task forces 2002 के हैं। बाद का Rastogi service tax circular review, Shome के 2012 GAAR review से पहले आता है।

Date caution: do not memorise the book’s unverified 2003 date for Rastogi. A one member Rastogi review was publicly reported in 2006. Also distinguish Shome’s GAAR expert committee in 2012 from the Tax Administration Reform Commission constituted in 2013. These distinctions do not change the intended ordering here.
Dates में सावधानी: Rastogi के लिए book का unverified 2003 year याद न करें; one member review 2006 में publicly reported था। Shome के 2012 GAAR expert committee को 2013 Tax Administration Reform Commission से अलग रखें। यहाँ intended ordering नहीं बदलती।

Income distance receives 45%, population 15%, demographic performance 12.5%, and forest and ecology 10%. The other criteria are area 15% and tax and fiscal efforts 2.5%; all six weights sum to 100%.
Income distance 45%, population 15%, demographic performance 12.5% और forest ecology 10% है। बाकी criteria area 15% तथा tax fiscal efforts 2.5% हैं; छह weights का sum 100% है।

Horizontal devolution distributes the states’ share among states. It differs from vertical devolution, which concerns the division between the Centre and states.
Horizontal devolution states के share को states के बीच distribute करता है। Vertical devolution Centre और states के बीच division है।

K Brahmananda Reddy chaired the 6th Finance Commission, N K P Salve the 9th, K C Pant the 10th, A M Khusro the 11th, and C Rangarajan the 12th. Their commission order gives D C E A B.
K Brahmananda Reddy 6th, N K P Salve 9th, K C Pant 10th, A M Khusro 11th और C Rangarajan 12th Finance Commission के chairpersons थे। Commission order से D C E A B मिलता है।

The corresponding constitution years are 1972, 1987, 1992, 1998 and 2002. Keep a commission’s constitution year separate from the years covered by its award.
इनके constitution years क्रमशः 1972, 1987, 1992, 1998 और 2002 हैं। Constitution year को award लागू होने वाले years से अलग रखें।

For 2023–24 the budget gives effective revenue deficit 1.6%, primary deficit 2.0%, revenue deficit 2.6% and fiscal deficit 5.6% of GDP. RBI reports the national current account deficit at 0.7% of GDP. Therefore the ascending sequence is 0.7 < 1.6 < 2.0 < 2.6 < 5.6.
2023–24 में budget के अनुसार effective revenue deficit 1.6%, primary deficit 2.0%, revenue deficit 2.6% और fiscal deficit 5.6% GDP हैं। RBI के अनुसार national current account deficit 0.7% GDP है। इसलिए ascending sequence 0.7 < 1.6 < 2.0 < 2.6 < 5.6 है।

Correction: the current account deficit is an external balance of the country, not a Union government budget deficit. The book’s 1.1% value for FY2023–24 is also incorrect; it does not alter the option ordering.
Correction: current account deficit पूरे देश का external balance है, Union government budget deficit नहीं। FY2023–24 के लिए book का 1.1% भी गलत है; इससे option ordering नहीं बदलती।

Using deficit finance to stimulate deficient aggregate demand is a Keynesian stabilisation argument. The traditional classical critique instead emphasises diversion of funds from productive private uses, debt servicing and possible future burdens.
Deficit finance से deficient aggregate demand stimulate करना Keynesian stabilisation argument है। Traditional classical critique productive private uses से funds divert होने, debt servicing और possible future burden पर जोर देता है।

The printed wording of (c), “creates production and consumption”, is not a reliable statement of that classical critique; “curtails” may have been intended. Thus (b) is the usual intended contrast, but the literal wording should not be learnt as a set of universally valid classical propositions.
Printed (c) का “creates production and consumption” classical critique का reliable statement नहीं; संभवतः “curtails” intended है। इसलिए usual intended contrast में (b) है, लेकिन literal wording को universally valid classical propositions की तरह याद न करें।