UGC NET Economics Important Questions with Answers

UGC NET Economics Important Questions: UGC NET Economics Exam is a crucial paper of the UGC NET December 2025 examination, assessing candidates’ understanding of microeconomics, macroeconomics, Indian economy, public finance, international trade, and economic theories. 

For aspirants, referring to UGC NET Economics Important Questions offers a systematic way to revise core concepts, understand exam trends, and concentrate on high-weightage and most expected topics.

UGC NET Economics Most Expected Questions with Answers

Prepare effectively for the UGC NET Economics exam with these carefully curated important questions and answers, covering core economic concepts, theories, thinkers, and high-weightage topics for quick and focused revision.

Q1. Which of the following statements are correct?

A. Expected value of a constant is zero
B. E(X+Y)=E(X)+E(Y)E(X + Y) = E(X) + E(Y)E(X+Y)=E(X)+E(Y)
C. Var(X+c)=Var(X)Var(X + c) = Var(X)Var(X+c)=Var(X), where ccc is a constant
D. If XXX and YYY are independent, then E(XY)=E(X)E(Y)E(XY) = E(X)E(Y)E(XY)=E(X)E(Y)
E. Var(aX)=a Var(X)Var(aX) = a \, Var(X)Var(aX)=aVar(X)

Correct Answer: B, C, and D

Q2. Autocorrelation refers to:

A. Correlation between independent variables
B. Correlation between dependent and independent variables
C. Correlation between error terms
D. Correlation between population parameters

Correct Answer: C

Q3. In the presence of autocorrelation, which of the following properties of OLS estimators hold true?

A. Linear
B. Unbiased
C. Efficient
D. Consistent
E. Minimum variance

Correct Answer: A, B and D

Q4. Which of the following satisfy the assumptions of the Classical Linear Regression Model?

A. Regression model is linear in parameters
B. Mean of error term is zero
C. Variance of error term is not constant
D. There is serial autocorrelation among error terms
E. Number of observations is greater than number of parameters

Correct Answer: A, B and E

Q5. A box contains 2 left-handed and 7 right-handed gloves. Two gloves are drawn at random without replacement. What is the probability that one glove is left-handed and the other is right-handed?

A. 1/9

B. 2/9

C. 7/18

D. 14/81

Correct Answer: C ( 7/18 )

Q6. Which of the following statements represent correct conclusions without error in hypothesis testing?

A. Reject H₀ when it is true

B. Accept H₀ when it is true

C. Accept H₀ when H₁ is true

D. Reject H₀ when H₁ is true

E. Accept H₀ when H₁ is false

Correct Answer: B, D and E

Q7. In a logit model, as the odds ratio decreases from 1 to 0, the value of the logit function becomes:

A. Positive
B. Zero
C. Negative
D. Infinite

Correct Answer: C

Q8. Consider the following statements:

1. Inflation is advantageous to debtors.

2. Inflation is advantageous to bond holders.

Which of the above statements is/are correct?

A. Only 1
B. Only 2
C. Both 1 and 2
D. Neither 1 nor 2

Correct Answer: A (Only 1)

Q9. If the rate of interest in an economy decreases from 20% to 10%, what will happen to the price of bonds?

A. Bond price will decrease
B. Bond price will increase
C. Bond price will remain unchanged
D. Bond price will fluctuate randomly

Correct Answer: B

Q10. Assertion (A): The sale of Treasury Bills is conducted through auctions.
Reason (R): Auctioning helps in price discovery.

Choose the correct option:

A. Both A and R are true, and R is the correct explanation of A
B. Both A and R are true, but R is not the correct explanation of A
C. A is true, but R is false
D. A is false, but R is true

Correct Answer: A

Q11. In a closed economy, the saving function is
S=−15+3YS = -15 + 3YS=−15+3Y

Investment I=5+2YI = 5 + 2YI=5+2Y
Government expenditure G=5G = 5G=5

What is the equilibrium level of income?

A. 150
B. 200
C. 250
D. 300

Correct Answer: C (250)

Q12. In the context of project evaluation, the Net Present Value (NPV) method mainly depends upon:

A. Rate of interest (discount rate)
B. Exchange rate prevailing at a given time
C. Sales tax rate
D. Both income tax and sales tax

Correct Answer: A

Q13. If the Consumer Price Index (CPI) was 120 in April 2025 and increased to 126 in April 2026, the rate of inflation is:

A. 5%
B. 6%
C. 4%
D. 3%

Correct Answer: A

Q14. Interest rate risk refers to a situation when:

A. Borrowers fail to fulfil loan contracts
B. A rise in interest rates leads to a fall in the value of securities in the secondary market
C. A rise in interest rates increases the value of securities
D. Unexpected inflation occurs

Correct Answer: B

Q15. If AAA is a non-empty set, which of the following statements is always true?

A. A′=AA' = AA′=A

B. (A′)′=A(A')' = A(A′)′=A

C. A∪A′=∅A \cup A' = \varnothingA∪A′=∅

D. A∩A′=AA \cap A' = AA∩A′=A

Correct Answer: B

UGC NET Economics Important Questions Full Playlist

UGC NET Economics Important Topics

For UGC NET December 2025, aspirants must prioritise important topics that are frequently asked and carry high weightage across different units. Focusing on these topics helps in concept clarity, faster revision, and better performance in Paper II. Below is a structured list of UGC NET Economics Important Topics based on recurring exam trends: