CUET Economics 2023 Slot 2 Past Year Paper with Solutions

Q1:

Macro

>

National Income

Easy

In case of an unexpected fall in turnover of a firm, who is producing a certain commodity. There will a situation of _______________

Choose the correct option.

Planned accumulation of inventories

Unplanned accumulation of inventories

Unplanned decumulation of inventories

Planned decumulation of inventories

Correct Answer

Option 2

Correct Answer

Explanation

Q2:

Indian Economic Development

>

Rural Development

Medium

Match List I with List II

	LIST I		LIST II
A.	NABARD	I.	Women-oriented community based poverty reduction program
B.	Kudumbashree	II.	Uses the mixed crop-live stock farming system
C.	Animal Husbandary	III.	HYV seeds, chemical fertilisers,
D.	Organic farming	IV.	Set up in 1982

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q3:

Indian Economic Development

>

Employment

Easy

Match List I with List II

	LIST I		LIST II
A.	Growth in GDP without generating employment	I.	Formal Sector
B.	Process of moving self employment and regular salaried to casual wage work	II.	Jobless Growth
C.	All establishments which employ 10 hired workers or more	III.	Casualization of work force
D.	Increases in proportion of workforce in informal sector	IV.	Informalization of work force

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q4:

Macro

>

Money & Banking

Medium

Chronologically arrange the following events.

A. Announcement of Demonetisation

B. Circulation of Fake Currency

C. Rs 500 and 1000 Notes lost legal tender

D. Impact on Economic Activities

E. New Rs 2000 Currency Note in the circulation

Choose the correct answer from the options given below:

B, D, A, C, E

C, D, B, A, E

B, C, D, A, E

A, E, B, C, D

Correct Answer

Option 1

Correct Answer

Explanation

Q5:

Indian Economic Development

>

Development Experience (1947-90)

Hard

Arrange the following in order of occurrance.

A. Green Revolution

B. Setting up of Planning Commission

C. Resolution which formed on the basis of second Five Year Plan

D. Exchange rate was made fully convertable for Current Accounts

E. Karve Committee

Choose the correct answer from the options given below:

B, C, E, A, D

B, E, C, A, D

B, E, C, D, A

B, C, E, D, A

Correct Answer

Option 2

Correct Answer

Explanation

Q6:

Macro

>

Government Budget

Easy

Which one is not the objective of government budget?

Reallocation of resources

Economic stability

Increase in regional disparities

Economic growth

Correct Answer

Option 3

Correct Answer

Explanation

Q7:

Indian Economic Development

>

Development Experience of India

Easy

Which of the following has highest FDI ?

India

China

Sri Lanka

Pakistan

Correct Answer

Option 2

Correct Answer

Explanation

Q8:

Macro

>

Balance of Payments

Medium

Which of the following statement is true about Autonomous transactions?

These items are done to correct the imbalance of BOP Account

These are also known as below the line item

These only occur in capital A/c of BOP

BOP is said to be in surplus if autonomous receipts are greater than autonomous payments

Correct Answer

Option 4

Correct Answer

Explanation

Q9:

Indian Economic Development

>

Employment

Easy

Match List I with List II

	LIST I		LIST II
A.	Regular salaried employees	I.	Common form of unemployment in rural India
B.	Self employed	II.	Assurance of minimum 100 days employment
C.	MNREGA	III.	Who own and operate an enterprise to earn their livelihood
D.	Disguised unemployment	IV.	Permanent workers employment

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

Indian Economic Development

>

Sustainable Economic Development

Medium

Arrange the following events in proper sequence.

A. Ultra violet radiation causes skin cancer

B. High levels of chlorine and bromine compounds in the stratosphere

C. Fridge brought to the house

D. Chlorofluoro carbons used as cooling agent

E. Depletion of ozone layer

Choose the correct answer from the options given below:

B, C, D, E, A

C, D, E, B, A

C, D, B, E, A

E, D, C, B, A

Correct Answer

Option 3

Correct Answer

Explanation

Q11:

Indian Economic Development

>

Economic Reforms (1991)

Easy

Match List I with List II

	LIST I		LIST II
A.	Reduction in value of currency	I.	Disinvestment
B.	Dilution of share in organisation	II.	Inflation
C.	Restriction on trade by taxes	III.	Devaluation
D.	Rise in General price level	IV.	Tarrif Barriers

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q12:

Macro

>

Balance of Payments

Easy

People demand foreign exchange because:

They want to send gifts abroad

The foreigners send gift in our country

They want to purchase imported goods from our market

The foreigners like to purchase goods from our market

Correct Answer

Option 1

Correct Answer

Explanation

Q13:

Macro

>

National Income

Medium

Arrange the following operations in a sequential manner in order to calculate $NNP_{FC}$ from $GDP_{MP}$

A. $GDP_{MP}$ - Net Indirect Taxes

B. $NDP_{FC}$ + Net Factor Income From Abroad

C. $GDP_{FC}$ - Depreciation

Choose the correct answer from the options given below:

A, B, C

B, C, A

A, C, B

C, A, B

Correct Answer

Option 3

Correct Answer

Explanation

Q14:

Macro

>

Government Budget

Medium

From the following data, Calculate Primary Deficit.

	Rs (crore)
Revenue expenditure	22,250
Capital expenditure	28,000
Revenue receipts	17,750
Capital receipts (net of borrowing)	20,000
Interest payment	5,000
Borrowings	12,500

Rs 7,500

Rs 12,500

Rs 5,000

Rs 17,750

Correct Answer

Option 1

Correct Answer

Explanation

Q15:

Indian Economic Development

>

Development Experience of India

Medium

In 1970 Pakistan Introduced nationalisation of Capital Good industries, but later due to international pressure they shifted the policy to.

De marketisation

Denationalisation

Derecognition

Deforming

Correct Answer

Option 2

Correct Answer

Explanation

Q16:

Indian Economic Development

>

Economic Reforms (1991)

Easy

_________ measures are _________ measures intended to correct some of weaknesses that have developed in the Balance of payment.

Stabilisation, Short term

Structural Reform, Long term

Stabilisation, Long term

Structural Reform, Short term

Correct Answer

Option 1

Correct Answer

Explanation

Q17:

Macro

>

Income & Employment

Easy

C=40+0.8Y and I =10, then what will be the equilibrium level of income?

-300

-250

300

250

Correct Answer

Option 4

Correct Answer

Explanation

Q18:

Indian Economic Development

>

Development Experience of India

Easy

In China a campaign initiated in 1958 aimed at industrialising country on a massive scale people were encouraged to set up industries in their backyard. This campaign is called

Great Show Forward

Great Dragon Forward

Great Run Forward

Great Leap Forward

Correct Answer

Option 4

Correct Answer

Explanation

Q19:

Indian Economic Development

>

Rural Development

Medium

The following is a part of Agriculture marketing system.

A. Minimum Support Price

B. Buffer Stock

C. Micro Credit Programmes

D. Public Distribution System

Choose the correct answer from the options given below:

A and B only

A, and D only

B, C, D only

A, B, D only

Correct Answer

Option 4

Correct Answer

Explanation

Q20:

Macro

>

National Income

Easy

Match List I with List II

	LIST I		LIST II
A.	Product will not pass through further transformation	I.	Capital Good
B.	A product used as raw material or input for production	II.	Final Good
C.	The good which enables for production on process	III.	Consumer Good
D.	Goods purchased by ultimate consumer	IV.	Intermediate Goods

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q21:

Indian Economic Development

>

Human Capital Formation

Easy

Which of the following is not true about the benefits of education?

Increases skewed income distribution

Raises standard and quality of living

Increases participation rate

Develops mental abilities

Correct Answer

Option 1

Correct Answer

Explanation

Q22:

Macro

>

National Income

Easy

Which of the following are correct statements related to stock and flow?

A. Flows are defined over on 1st January

B. Flows are defined over a period of time

C. Flows and stocks are defined as a mutual understanding

D. Stocks are defined from January to December

E. Stocks are defined at a particular point of time

Choose the correct answer from the options given below:

B and E only

A and D only

C and E only

A and B only

Correct Answer

Option 1

Correct Answer

Explanation

Q23:

Indian Economic Development

>

Employment

Medium

In what ways labour laws enable the workers to protect their rights.

A. Providing more holidays

B. Protection of wages

C. Providing unemployment allowances

D. Redress of grievances (compensation for loss)

E. Right to organise and form trade unions

Choose the correct answer from the options given below:

A, C and D only

B, D and C only

A, B and C only

B, D and E only

Correct Answer

Option 4

Correct Answer

Explanation

Q24:

Indian Economic Development

>

Rural Development

Easy

The apex body that coordinates the activities of all institution involved in the rural financing system is:

National Bank for Allied Activities and Rural Development

National Bank for Agriculture and Road Development

Reserved Bank of India

National Bank for Agriculture and Rural Development

Correct Answer

Option 4

Correct Answer

Explanation

Q25:

Indian Economic Development

>

Employment

Medium

Disadvantages of casualisation of workforce:

A. No Paid leave

B. No regular income

C. No access to training

D. Permission to take leave is not required

E. Less working hours

Choose the correct answer from the options given below:

A, C and E only

B, C and D only

A, B and C only

C, D and E only

Correct Answer

Option 3

Correct Answer

Explanation

Q26:

Macro

>

Balance of Payments

Medium

When nation is a borrower from other countries means:

Trade surplus

Deficit in current Account

Surplus in current Account

Trade Deficit

Correct Answer

Option 2

Correct Answer

Explanation

Q27:

Micro

>

Consumer Behaviour

Easy

"Increase in price of good 'x' leads to increase in demand of good 'Y'. " How the goods are related to.

Complementary goods

Normal goods

Inferior goods

Substitute goods

Correct Answer

Option 4

Correct Answer

Explanation

Q28:

Indian Economic Development

>

Development Experience of India

Medium

"Growth refers to increase in the country's capacity of module the output of goods and services with in the country." Choose the incorrect option from the following in relation to Growth.

Growth implies a large stock of production capital

Growth implies a large stock of supporting services.

Growth implies an equal contribution to GDP by each sectors of the economy.

Growth implies an increase in efficiency of productive capital and services

Correct Answer

Option 3

Correct Answer

Explanation

Q29:

Micro

>

Consumer Behaviour

Easy

Elasticity of Demand is given by the formula.

$\frac{Q}{\Delta Q} \times \frac{P}{\Delta P}$

$\frac{\Delta Q}{Q} \times \frac{P}{\Delta P}$

$\frac{\Delta P}{P} \times \frac{\Delta Q}{Q}$

$\frac{\Delta Q}{P} \times \frac{Q}{P}$

Correct Answer

Option 2

Correct Answer

Explanation

Q30:

Indian Economic Development

>

Employment

Easy

The Process of moving from self - employment and regular salaried employment to casual wage work is known as:

Casualisation of work force

Regularisation of casual wage

Non Salaried Force

Self employment Force

Correct Answer

Option 1

Correct Answer

Explanation

Q31:

Macro

>

Income & Employment

Medium

If C= X+0.6Y & Investment is Rs 1,500 Equilibrium level of income in economy would be 4050, find out the autonomous consumption.

-120

100

120

-100

Correct Answer

Option 3

Correct Answer

Explanation

Q32:

Macro

>

Income & Employment

Easy

A country's consumption function described as

C=500+ 0.7 Y

the Autonomous consumption

350

500

3500

350

Correct Answer

Option 2

Correct Answer

Explanation

Q33:

Micro

>

Consumer Behaviour

Medium

Suppose an Individual buys 15 units of good when its price is Rs 5 per unit. What will happen to his demand when price of the good increases to Rs 7 per unit and elasticity of demand for the good is 0.5

Increase his demand

No change in his demand

Reduce his demand

Shift to other Good.

Correct Answer

Option 3

Correct Answer

Explanation

Q34:

Micro

>

Introduction

Easy

How will the earthquake in Turkey affect the production possibility curve of their economy?

Production Possibility curve will shift rightward

Production Possibility curve will shift leftward

No change in Production Possibility curves

Production Possibility Curve can shift leftward and rightward both

Correct Answer

Option 2

Correct Answer

Explanation

Q35:

Macro

>

Government Budget

Medium

Escheat is an example of:

Capital receipt

Revenue receipt

Capital expenditure

Revenue expenditure

Correct Answer

Option 2

Correct Answer

Explanation

Q36:

Indian Economic Development

>

Development Experience (1947-90)

Hard

Choose the correct sequence from the following.

A. British introduced railways in India

B. Latest population census

C. Population explosion according to 2nd stage of demographic transition theory

D. Year of "Great Divide"

E. First census conducted by British India

Choose the correct answer from the options given below:

A, B, D, C, E

B, A, E, D, C

C, A, B, D, E

A, E, D, C, B

Correct Answer

Option 4

Correct Answer

Explanation

Q37:

Indian Economic Development

>

Rural Development

Easy

The benefit of organic farming is.

Limited shelf life

Labour intensive

Limited off - season crops

Marketing issues

Correct Answer

Option 2

Correct Answer

Explanation

Q38:

Indian Economic Development

>

Rural Development

Medium

A farmer want to take credit to meet his expenditure in agriculture inputs. Which of the following is not an institution he may approach for the credit ?

Regional Rural Banks (RRBs)

National Bank for Agriculture and Rural Development

Commercial Banks

Land Development Banks

Correct Answer

Option 2

Correct Answer

Explanation

Q39:

Macro

>

Income & Employment

Easy

Identify the symbol that is used to denote autonomous consumption.

$\bar{C}$

C

$\Delta C$

MPC

Correct Answer

Option 1

Correct Answer

Explanation

Q40:

Macro

>

Balance of Payments

Medium

Which of the following statements is true. If exchange rate changes from $1 = Rs 72 to Rs 81.

A. Import will fall

B. Import will rise

C. Exports will rise

D. National Income will rise

E. National Income will fall

Choose the correct answer from the options given below:

B, C and D only

A, C and D only

B, C and E only

A, C and E only

Correct Answer

Option 2

Correct Answer

Explanation

Q41:

Macro

>

Money & Banking

Easy

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

Which function of central Bank is refered to in the above paragraph.

Financial Advisor

Supervisor to Banks

Banker's Bank

Lender to last resort

Correct Answer

Option 2

Correct Answer

Explanation

Q42:

Macro

>

Money & Banking

Medium

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

As a bankers' bank, what is the role played by RBI?

A. Custodian of cash reserves

B. Maintain Foreign Exchange Reserves

C. Currency Issue

D. Lender of last resort

E. Clearing house

Choose the correct answer from the options given below:

A, C, D and E only

B and C only

A only

A, D and E only

Correct Answer

Option 4

Correct Answer

Explanation

Q43:

Macro

>

Money & Banking

Easy

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

How does RBI act as a supervisor to bank?

Banker to government

Agent to government

Financial advisor to government

Inspection & imposing penalty

Correct Answer

Option 4

Correct Answer

Explanation

Q44:

Macro

>

Money & Banking

Easy

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

If all the depositors, one day come to withdraw all the cash, what would be role played by RBI?

Maintaining Foreign Exchange Reserves

Lender of last resort

Maintaining cash reserves

Currency issue

Correct Answer

Option 2

Correct Answer

Explanation

Q45:

Macro

>

Money & Banking

Medium

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

Which of the following is correct statement?

RBI act as banker to commercial banks & Central Bank

Central Bank creates credit in economy

All financial institutions are banking institutions

One rupee note and all coins are issued by the Ministry of Finance

Correct Answer

Option 4

Correct Answer

Explanation

Q46:

Macro

>

National Income

Easy

Real GDP is calculated in a way such that goods and services are evaluated at some constant set of prices. Since these prices remain fixed, if the Real GDP changes we can be sure that it is the volume of production which is undergoing changes. Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.

When value of final goods and services are estimate at current price it is?

Real G.D.P.

Nominal G.D.P.

G.D.P. at constant prices

Consumer Price Index

Correct Answer

Option 2

Correct Answer

Explanation

Q47:

Macro

>

National Income

Easy

Real GDP is calculated in a way such that goods and services are evaluated at some constant set of prices. Since these prices remain fixed, if the Real GDP changes we can be sure that it is the volume of production which is undergoing changes. Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.

Real G.D.P. increases only when.

Prices increases

Prices decreases

Production increases

Production decreases

Correct Answer

Option 3

Correct Answer

Explanation

Q48:

Macro

>

National Income

Easy

Real GDP is calculated in a way such that goods and services are evaluated at some constant set of prices. Since these prices remain fixed, if the Real GDP changes we can be sure that it is the volume of production which is undergoing changes. Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.

Keeping output constant nominal GDP increases because.

Prices increase

Prices decrease

Output decrease

Prices increase and output increase

Correct Answer

Option 1

Correct Answer

Explanation

Q49:

Macro

>

National Income

Easy

Real GDP is calculated in a way such that goods and services are evaluated at some constant set of prices. Since these prices remain fixed, if the Real GDP changes we can be sure that it is the volume of production which is undergoing changes. Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.

Which G.D.P. is the indicator of growth and development of a country?

Nominal G.D.P.

National Income

Real G.D.P.

Domestic Income

Correct Answer

Option 3

Correct Answer

Explanation

Q50:

Macro

>

National Income

Medium

Real GDP is calculated in a way such that goods and services are evaluated at some constant set of prices. Since these prices remain fixed, if the Real GDP changes we can be sure that it is the volume of production which is undergoing changes. Nominal GDP, on the other hand, is simply the value of GDP at the current prevailing prices.

If output in an economy is decreasing but G.D.P. of country is increasing which G.D.P. it is:

Real G.D.P.

Domestic Income

G.D.P. at Constant Price

Nominal G.D.P.

Correct Answer

Option 4

Correct Answer

Explanation

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CUET Economics 2023 29 May Shift 2 Past Year Question Paper

CUET Economics Past Year Questions (Topic-Wise)