Are you unsure which topics in Unit 1 deserve the most attention for UGC NET Economics preparation? With a vast microeconomics syllabus, it can be difficult to identify the concepts that are frequently tested in the exam. This is where UGC NET Economics Unit 1 PYQs become an important preparation resource. 

Previous year questions help candidates understand the exam pattern, identify recurring topics, and focus on concepts that have been asked repeatedly. Regular practice of PYQs can improve conceptual clarity, accuracy, and confidence for the examination.

Why Are UGC NET Economics Unit 1 PYQs Important?

Previous year questions serve as a roadmap for effective preparation because they:

• Reveal frequently tested topics.

• Help understand the examiner's approach.

• Improve conceptual clarity.

• Enhance time management skills.

• Familiarise candidates with question patterns.

Many topics from Unit 1 have appeared repeatedly over the years with minor modifications. Therefore, understanding the concept behind a PYQ is often more important than memorising the answer.

Important Topics Covered in UGC NET Economics Unit 1 PYQs

The following areas frequently appear in UGC NET Economics examinations:

UGC NET Economics Unit 1 PYQs with Answers

PYQ 1: CES Production Function

Question: Given a Constant Elasticity of Substitution (CES) Production Function, determine the elasticity of substitution between factors.

Answer: σ = 1/(1 + ρ) (depending on the form of the CES function).

PYQ 2: Consumer Surplus

Question: The basis of Consumer Surplus in Marshallian Utility Analysis is:

A. Law of Demand
B. Law of Equi-Marginal Utility
C. Law of Diminishing Marginal Utility
D. Law of Proportions

Answer: C. Law of Diminishing Marginal Utility

PYQ 3: Cobb-Douglas Production Function

Question: For the production function Q = AKᵅLᵝ, which statement is always correct?

A. Degree of Homogeneity equals 1
B. Output Elasticity with respect to Capital equals α
C. Constant Returns to Scale always exist
D. Marginal Product equals Average Product

Answer: B. Output Elasticity with respect to Capital equals α

PYQ 4: Perfect Competition

Question: Which market structure consists of a large number of buyers and sellers dealing in a homogeneous product?

Answer: Perfect Competition

PYQ 5: Ordinal Utility Analysis

Question: A professor assigns grades A, B, and C. We know that A is preferred to B and B is preferred to C, but cannot measure by how much. Which utility approach does this represent?

Answer: Ordinal Utility Approach

PYQ 6: Lemons Market

Question: Asymmetric Information in George Akerlof's Market for Lemons leads to which of the following?

1. Fall in average prices

2. Withdrawal of better-quality goods

3. Adverse Selection

Answer: All three statements are correct.

PYQ 7: Walras' Law

Question: According to Walras' Law, if an economy contains n markets, how many markets must be in equilibrium for the remaining market to automatically reach equilibrium?

Answer: n − 1 markets

PYQ 8: Nash Equilibrium

Question: Nash Equilibrium is most commonly associated with which type of market structure?

Answer: Oligopoly 

PYQ 9: Tit-for-Tat Strategy

Question: Which economist is associated with the Tit-for-Tat strategy in Game Theory?

Answer: Robert Axelrod

PYQ 10: Game Theory Contributors

Question: Arrange the following economists chronologically:

• John Nash

• Von Neumann and Morgenstern

• Robert Axelrod

• Paul Milgrom

Answer: Von Neumann & Morgenstern → John Nash → Robert Axelrod → Paul Milgrom

PYQ 11: Price Elasticity from AR and MR

Question: If Average Revenue (AR) = 30 and Marginal Revenue (MR) = 10, find the Price Elasticity of Demand.

Answer: Elasticity of Demand = –1.5

PYQ 12: Scitovsky Criterion

Question: What improvement did Scitovsky introduce to the Kaldor Compensation Principle?

Answer: Scitovsky introduced the Reversal Test to avoid contradictory welfare conclusions. 

PYQ 13: Cobweb Model

Question: In a Cobweb Model with a lagged supply function, convergence towards equilibrium depends upon what?

Answer: The relative slopes of the demand and supply curves.

PYQ 14: Degree of Homogeneity

Question: Determine the degree of homogeneity of the production function:

Q = LK / (L + K)

Answer: Degree of Homogeneity = 1

PYQ 15: Efficiency Wage Theory

Question: Which economist is associated with the Efficiency Wage Theory?

Answer: Joseph Stiglitz

PYQ 16: Market Models

Question: The Bertrand Model is primarily associated with which type of competition?

Answer: Price Competition

PYQ 17: Stackelberg Model

Question: What is the key characteristic of the Stackelberg Model?

Answer: Leadership and interdependence among firms.

PYQ 18: Consumer Theory

Question: Which concept forms the basis of Indifference Curve Analysis?

Answer: Ordinal Utility

PYQ 19: Oligopoly

Question: Which market structure is characterised by a few competing firms and strategic interaction?

Answer: Oligopoly

PYQ 20: Welfare Economics

Question: Which criterion states that a welfare improvement must satisfy both the compensation principle and the reversal test?

Answer: Scitovsky Criterion

How to Use UGC NET Economics Unit 1 PYQs Effectively?

Follow this strategy:

Step 1: Solve Topic-Wise PYQs

Start with:

• Consumer Theory

• Production Theory

• Market Structures

Step 2: Identify Repeated Concepts

Maintain a separate notebook for:

• Frequently asked theories

• Important economists

• Key formulas

Step 3: Practice Modified Questions

Examiners often change wording while testing the same concept.

Step 4: Revise Concept Notes

Focus on:

• Definitions

• Assumptions

• Applications

• Graphical Analysis

Step 5: Attempt Mock Tests

Regular mock practice improves speed and conceptual application.