UGC NET Economics Unit 4 PYQs with Answers

UGC NET Economics Unit 4 focuses on International Economics and is an important part of the syllabus. Questions from this unit are regularly asked in the examination. Candidates preparing for the UGC NET June 2026 examination, scheduled from June 22 to June 30, 2026, should pay special attention to this unit due to its consistent weightage in the exam.

Practising Previous Year Questions (PYQs) helps candidates understand the exam pattern and identify important topics. It also improves conceptual clarity and accuracy. Many questions in UGC NET Economics are based on theoretical concepts, chronological events, and international organizations. Therefore, solving PYQs is an important part of preparation.

Detailed Video on UGC NET Economics Unit 4 PYQs

UGC NET Economics Unit 4 includes several important topics from International Economics. While practising Previous Year Questions helps candidates understand the exam pattern, detailed explanations can improve conceptual clarity and accuracy.

Students who want to practise more UGC NET Economics Unit 4 PYQs and understand the reasoning behind the answers can watch the video provided below:  

The session covers important PYQs from topics such as international trade theories, balance of payments, tariffs, WTO, World Bank institutions, economic integration, foreign exchange markets, the Gravity Model of Trade, and other frequently asked concepts.

The video also explains chronology-based questions, important formulas, and elimination techniques that can help candidates solve questions more effectively in the examination.

UGC NET Economics Unit 4 PYQs 

Practising Previous Year Questions helps candidates understand important concepts and the pattern of questions asked in the UGC NET Economics examination. Below are some important Unit 4 PYQs from International Economics along with their correct answers:

Q1. Among the following, which is/are attempts at economic integration among developing countries?

(A) The Central American Common Market
(B) The Caribbean Free Trade Association
(C) The Latin American Free Trade Association
(D) All of the above

Answer: (D) All of the above

Q2. The secular deterioration of terms of trade for low-developed countries has been explained by:

(A) J.S. Mill
(B) H.W. Singer
(C) Adam Smith
(D) Raul Prebisch
(E) Jagdish Bhagwati

Choose the correct answer from the options given below:

(A) (B), (D), (E) only
(B) (A), (B), (D) only
(C) (A), (D), (E) only
(D) (C), (D), (E) only

Answer: (A) (B), (D), (E) only

Q3. Match List I with List II

Choose the correct answer:

(A) (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
(B) (A)-(IV), (B)-(III), (C)-(II), (D)-(I)
(C) (A)-(IV), (B)-(I), (C)-(II), (D)-(III)
(D) (A)-(III), (B)-(II), (C)-(I), (D)-(IV)

Answer: (B) (A)-(IV), (B)-(III), (C)-(II), (D)-(I)

Q4. When imports are restricted with a quota rather than a tariff, the cost is sometimes magnified by a process known as:

(A) Rent Seeking
(B) Quota Seeking
(C) Tax Seeking
(D) None of the Above

Answer: (A) Rent Seeking

Q5. Which of the following is/are possible reasons for surplus in the Balance of Payment?

(A) Decline in imports
(B) Decline in interest rate
(C) Increase in exports
(D) Increase in income tax
(E) High outward foreign direct investment

Choose the correct answer:

(A) (A), (C), (E) only
(B) (A), (B), (C), (E) only
(C) (B), (C), (E), (D) only
(D) (A), (C) only

Answer: (D) (A), (C) only

Q6. As per the Gravity Model of World Trade, which of the following components of two countries determines the volume of trade between them?

(A) Gross Domestic Product
(B) Distance
(C) Foreign Exchange Rate
(D) Foreign Trade Intensity
(E) Foreign Investment

Choose the correct answer:

(A) (A) and (B) only
(B) (B) and (C) only
(C) (A) and (C) only
(D) (A) and (E) only

Answer: (A) (A) and (B) only

Q7. Which of the following combinations of theorems and their subjects are correctly matched?

(A) Modigliani-Miller Theorem : Price of goods and real return to factor
(B) Dorfman-Steiner Theorem : Advertisement expenditure
(C) Arrow's Impossibility Theorem : Social Choice
(D) Stolper-Samuelson Theorem : Capital Structure
(E) Fisher's Separation Theorem : Profit Maximisation Motivation

Choose the correct answer:

(A) (A), (B), (D) only
(B) (B), (D), (E) only
(C) (A), (C), (D) only
(D) (B), (C), (E) only

Answer: (D) (B), (C), (E) only

Q8. Match List I with List II

Choose the correct answer:

(A) (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
(B) (A)-(I), (B)-(III), (C)-(II), (D)-(IV)
(C) (A)-(I), (B)-(III), (C)-(IV), (D)-(II)
(D) (A)-(I), (B)-(IV), (C)-(III), (D)-(II)

Answer: (A) (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Q9. Arrange the following in correct chronological order from oldest to latest:

(A) World Trade Organization (WTO)
(B) General Agreement on Tariffs and Trade (GATT)
(C) New Economic Policy of India (NEP)
(D) Introduction of Goods and Services Tax (GST)
(E) Establishment of NABARD

Answer: (B), (E), (C), (A), (D)

GATT (1948) → NABARD (1982) → NEP (1991) → WTO (1994) → GST (2017)

Q10. If Nation 1 has 100L + 150K and Nation 2 has 1000L + 1000K, then which of the following is correct?

(A) Nation 1 is a Capital-Rich Country
(B) Nation 2 is a Capital-Rich Country
(C) Nation 1 is a Labour Rich Country
(D) Nation 2 is a Labour Rich Country

Answer: (A) Nation 1 is a Capital Rich Country

Regular practice of UGC NET Economics Unit 4 PYQs can improve conceptual understanding and help candidates perform better in the examination. Consistent revision of important theories, formulas, international organizations, and chronology-based questions can significantly strengthen preparation for UGC NET Economics.