Q1:
27 May Shift 2
Macro > Income & Employment
Easy
________ is the ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure of the economy.
Correct Answer
Option 2
Correct Answer
CUET Economics 2025 27 May Shift 2 PYQs
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Q2:
27 May Shift 2
Macro > Income & Employment
Medium
The equilibrium level of output may be more or less than the full employment level of output. If it is less than the full employment of output, it is due to the fact that demand is not enough to employ all factors of production. This situation is called ......
Correct Answer
Option 3
Correct Answer
Q3:
27 May Shift 2
Macro > Money & Banking
Easy
When did the Government of India take a decision to demonetize the currency notes of Rs500 and Rs1000?
Correct Answer
Option 4
Correct Answer
Q4:
27 May Shift 2
Macro > National Income
Medium
Which statements are true in terms of basic national income aggregates: (A) GNP at factor cost measures the value of output received by the factors of production belonging to a country in a year. (B) GDP is the market value of all intermediate goods and final goods and services produced within a domestic territory of a country measured in a year. (C) NDP at factor cost is the income earned by the factors in the form of wages, profits, rent, interest, etc., within the domestic territory of a country. (D) GDP at factor cost is gross domestic product at market prices, less net product taxes. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q5:
27 May Shift 2
Macro > Government Budget
Medium
To obtain an estimate of borrowing on account of current expenditures exceeding revenues, we need to calculate what has been called the primary deficit. Gross primary deficit...
Correct Answer
Option 2
Correct Answer
Q6:
27 May Shift 2
Micro > Production & Costs
Easy
In the short run, the shape of marginal cost, average variable cost and short run average cost curves are:
Correct Answer
Option 3
Correct Answer
Q7:
27 May Shift 2
Micro > Production & Costs
Easy
Calculate the short run average cost when total cost is 95 with 9 units of output.
Correct Answer
Option 4
Correct Answer
Q8:
27 May Shift 2
Micro > Production & Costs
Easy
Match List-I with List-II | List-I | List-II | |---|---| | (A) Short run Marginal Cost (SMC) | (I) ΔTC/Δq | | (B) Long run Average Cost (LRAC) | (II) TVC/q | | (C) Average Variable Cost (AVC) | (III) TC/q | | (D) Average Fixed cost (AFC) | (IV) TFC/q | Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q9:
27 May Shift 2
Micro > Production & Costs
Easy
Which of the following are correct: (A) Average Product of labor = Total Product of labor / Labor. (B) Average cost = average variable cost + average fixed cost. (C) Marginal Product of labor = Total Product of labor/Labor. (D) Average fixed cost = Fixed cost / Output. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q10:
27 May Shift 2
Micro > Forms of Market
Easy
For a price-taking firm, the market price is equal to marginal revenue and ......
Correct Answer
Option 4
Correct Answer
Q11:
27 May Shift 2
Micro > Consumer Behaviour
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Consumer's income changes, but prices remain unchanged. The equation of the budget line. | (I) p₁ x₁ + p₂ x₂ = M' | | (B) Marginal Rate of Substitution (MRS) | (II) p'₁ x₁ + p₂ x₂ = M | | (C) The price of a commodity changes, but income remains unchanged. The equation of the budget line. | (III) Δ Y/ΔX | | (D) Total Utility | (IV) $MU₁ + MU₂ + ... + MU_{n-1} + MU_n$ | Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q12:
27 May Shift 2
Macro > Income & Employment
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Final goods market | (I) A + cY | | (B) Consumers demand | (II) ΔY/ΔA | | (C) Investment multiplier | (III) Ĉ + cY | | (D) Linear equation | (IV) a + bX | Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q13:
27 May Shift 2
Macro > Income & Employment
Medium
The equilibrium level of income depends on aggregate demand. Thus, if aggregate demand changes, the equilibrium level of income changes. This can happen in anyone or combination of the following situations: (A) Change in autonomous consumption. (B) Change in marginal propensity to consume. (C) Income. (D) Change in autonomous investment. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q14:
27 May Shift 2
Macro > Income & Employment
Easy
______ level of income is that level of income where all the factors of production are fully employed in the production process.
Correct Answer
Option 3
Correct Answer
Q15:
27 May Shift 2
Macro > Money & Banking
Medium
Which are the following statements are true: (A) Open Market Operations refers to buying and selling of bonds issued by the Government in the open market. (B) Currency notes and coins are called fiat money. (C) M2 and M4 are known as broad money. (D) M1 and M2 are known as narrow money. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q16:
27 May Shift 2
Macro > Income & Employment
Medium
In macroeconomic theory, which is not justification for taking the price level as fixed.
Correct Answer
Option 4
Correct Answer
Q17:
27 May Shift 2
Macro > Income & Employment
Medium
Arrange the following statements about the effect of an increase in taxes on total income and output. (A) An increase in taxes decreases disposable income. (B) Aggregate demand schedule shifts downwards. (C) Aggregate expenditure changes by a fraction of tax deduction. (D) Equilibrium output decreases.
Correct Answer
Option 2
Correct Answer
Q18:
27 May Shift 2
Macro > National Income
Hard
Match List-I with List-II | List-I | List-II | |---|---| | (A) GVA at Market Prices | (I) GVA at basic prices - Net Production Taxes | | (B) GVA at basic prices | (II) NNPMP - Net Product Taxes - Net Production Taxes | | (C) GVA at factor cost | (III) GDP at market prices | | (D) National Income (NI) | (IV) GVAMP - Net Product Taxes | Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q19:
27 May Shift 2
Micro > Production & Costs
Medium
At the minimum point of the long run average cost curve .......... is observed.
Correct Answer
Option 2
Correct Answer
Q20:
27 May Shift 2
Micro > Consumer Behaviour
Medium
Which of the following statements are correct: (A) Consumer's preferences are monotonic: If and only if between any two bundles, the consumer prefers the bundle which has more of at least one of the goods and no less of the other good as compared to the other bundle. (B) The tendency for the MRS to fall with increase in quantity of goods is known as the Law of Diminishing Marginal Rate of Substitution. (C) A decrease in income causes a parallel outward shift of the budget line. (D) The budget set is the collection of all bundles that the consumer can buy with their income at the prevailing market prices. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q21:
27 May Shift 2
Micro > Consumer Behaviour
Medium
If the price of a commodity increases by 20%, its demand drops by 20%. Then how it will affect the expenditure?
Correct Answer
Option 3
Correct Answer
Q22:
27 May Shift 2
Micro > Introduction
Easy
If we want to have more of one of the goods, we will have less of the other good. Thus, there is always a cost of having a little more of one good in terms of the amount of the other good that has to be forgone. What is this cost known as?
Correct Answer
Option 2
Correct Answer
Q23:
27 May Shift 2
Macro > Income & Employment
Medium
The value that marginal rate of propensity can take in consumption function.
Correct Answer
Option 1
Correct Answer
Q24:
27 May Shift 2
Macro > Government Budget
Easy
The government imposes taxes that do not depend on income is called.
Correct Answer
Option 1
Correct Answer
Q25:
27 May Shift 2
Macro > Money & Banking
Easy
Central Bank is a very important institution in a modern economy. Almost every country has one central bank. India got its central bank in ......
Correct Answer
Option 1
Correct Answer
Q26:
27 May Shift 2
Micro > Forms of Market
Easy
In a perfectly competitive market, a firm produces and sells a certain amount of goods. Among the following what reflect the firm's profit?
Correct Answer
Option 2
Correct Answer
Q27:
27 May Shift 2
Micro > Production & Costs
Medium
In inverse 'U'-shaped average product curve; as long as the value of Marginal Product remains higher than the value of the average product, in this condition the average product continues to ..........
Correct Answer
Option 2
Correct Answer
Q28:
27 May Shift 2
Macro > Money & Banking
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Cash Reserve Ratio | (I) Reserves + Loans | | (B) Net Worth | (II) Deposits | | (C) Assets | (III) Percentage of deposits which a bank must keep as cash reserves with the central bank | | (D) Liabilities | (IV) Assets – Liabilities | Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q29:
27 May Shift 2
Macro > National Income
Easy
An annual allowance for wear and tear of capital goods is defined as?
Correct Answer
Option 4
Correct Answer
Q30:
27 May Shift 2
Micro > Forms of Market
Easy
Public goods, as distinct from private goods, are collectively consumed. Two important features of public goods are:
Correct Answer
Option 3
Correct Answer
Q31:
27 May Shift 2
Micro > Market Equilibrium
Medium
Arrange the following statement of government intervention in the form of price control. (A) The government sets floors or minimum prices for these goods and services. (B) A fall in price below a particular level is not desirable. (C) The price charged for a particular good or service is called the price floor. (D) The government imposed a lower limit on the price. Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q32:
27 May Shift 2
Micro > Market Equilibrium
Medium
Arrange the following statement when the market demand curve shifts rightward with the supply curve remaining unchanged. (A) The shift indicates that at any price the quantity demanded is more than before. (B) Some individuals will be willing to pay higher price and the price would tend to rise. (C) There is excess demand. (D) At the new equilibrium, quantity and price will be greater than before. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q33:
27 May Shift 2
Micro > Forms of Market
Easy
In a perfectly competitive market, the marginal revenue curve is?
Correct Answer
Option 2
Correct Answer
Q34:
27 May Shift 2
Micro > Introduction
Easy
Which one is not the central problem of the economy?
Correct Answer
Option 3
Correct Answer
Q35:
27 May Shift 2
Micro > Market Equilibrium
Hard
Let us consider a linear demand curve $q = a - bp$. On the same demand curve, arrange the elasticity in ascending order. (A) $|e_D| = 1$. (B) $|e_D| < 1$. (C) $|e_D| > 1$. (D) $|e_D| = 0$. Choose the **correct** answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q36:
27 May Shift 2
Macro > Income & Employment
Medium
Arrange the following statements when autonomous investment increases.. (A) The autonomous expenditure increases. (B) Aggregate demand and output have a multiplier effect. (C) Income and output increases. (D) The aggregate demand curve shifts parallel upward. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q37:
27 May Shift 2
Micro > Production & Costs
Medium
Average fixed cost curve is actually a ................... curve:
Correct Answer
Option 1
Correct Answer
Q38:
27 May Shift 2
Macro > Government Budget
Easy
Consumers will not voluntarily pay for what they can get for free and for which there is no exclusive title to the property being enjoyed. These non-paying users are known as....?
Correct Answer
Option 4
Correct Answer
Q39:
27 May Shift 2
Micro > Consumer Behaviour
Easy
An increase in the price of socks is likely to decrease the demand for shoes and a decrease in the price of socks is likely to increase the demand for shoes. Socks and shoes are:
Correct Answer
Option 3
Correct Answer
Q40:
27 May Shift 2
Micro > Production & Costs
Easy
The marginal product of an input initially rises and then after a certain level of employment, it starts falling, thus MP curve looks like an inverse 'U'- shaped curve. This condition is under ............
Correct Answer
Option 2
Correct Answer
Q41:
27 May Shift 2
Micro > Consumer Behaviour
Easy
Macroeconomic Variables
In an economy where two goods, wheat and cloth, are produced. A representative consumer buys 90 kg of wheat and 5 pieces of cloth in a year. Suppose in the year 2022 the price of a kg of wheat was Rs 10 and a piece of cloth was Rs 100. The prices of a kg of wheat and a piece of cloth went up to Rs 15 and Rs 120 respectively in the year 2025. It is worth noting that many commodities have two sets of prices. One is the retail price which the consumer actually pays. The other is the wholesale price, the price at which goods are traded in bulk. These two may differ in value because of the margin kept by traders.
The total sum that the consumer has to spend on wheat in 2025?
Correct Answer
Option 1
Correct Answer
Q42:
27 May Shift 2
Micro > Consumer Behaviour
Easy
Macroeconomic Variables
In an economy where two goods, wheat and cloth, are produced. A representative consumer buys 90 kg of wheat and 5 pieces of cloth in a year. Suppose in the year 2022 the price of a kg of wheat was Rs 10 and a piece of cloth was Rs 100. The prices of a kg of wheat and a piece of cloth went up to Rs 15 and Rs 120 respectively in the year 2025. It is worth noting that many commodities have two sets of prices. One is the retail price which the consumer actually pays. The other is the wholesale price, the price at which goods are traded in bulk. These two may differ in value because of the margin kept by traders.
The total sum consumer will spends on cloth in 2025?
Correct Answer
Option 3
Correct Answer
Q43:
27 May Shift 2
Micro > Consumer Behaviour
Easy
Macroeconomic Variables
In an economy where two goods, wheat and cloth, are produced. A representative consumer buys 90 kg of wheat and 5 pieces of cloth in a year. Suppose in the year 2022 the price of a kg of wheat was Rs 10 and a piece of cloth was Rs 100. The prices of a kg of wheat and a piece of cloth went up to Rs 15 and Rs 120 respectively in the year 2025. It is worth noting that many commodities have two sets of prices. One is the retail price which the consumer actually pays. The other is the wholesale price, the price at which goods are traded in bulk. These two may differ in value because of the margin kept by traders.
The total sum consumer spends on cloth in 2022?
Correct Answer
Option 2
Correct Answer
Q44:
27 May Shift 2
Micro > Consumer Behaviour
Easy
Macroeconomic Variables
In an economy where two goods, wheat and cloth, are produced. A representative consumer buys 90 kg of wheat and 5 pieces of cloth in a year. Suppose in the year 2022 the price of a kg of wheat was Rs 10 and a piece of cloth was Rs 100. The prices of a kg of wheat and a piece of cloth went up to Rs 15 and Rs 120 respectively in the year 2025. It is worth noting that many commodities have two sets of prices. One is the retail price which the consumer actually pays. The other is the wholesale price, the price at which goods are traded in bulk. These two may differ in value because of the margin kept by traders.
The total sum that the consumer has to spend on wheat in 2022?
Correct Answer
Option 1
Correct Answer
Q45:
27 May Shift 2
Micro > Consumer Behaviour
Easy
Macroeconomic Variables
In an economy where two goods, wheat and cloth, are produced. A representative consumer buys 90 kg of wheat and 5 pieces of cloth in a year. Suppose in the year 2022 the price of a kg of wheat was Rs 10 and a piece of cloth was Rs 100. The prices of a kg of wheat and a piece of cloth went up to Rs 15 and Rs 120 respectively in the year 2025. It is worth noting that many commodities have two sets of prices. One is the retail price which the consumer actually pays. The other is the wholesale price, the price at which goods are traded in bulk. These two may differ in value because of the margin kept by traders.
What is Consumer Price Index?
Correct Answer
Option 3
Correct Answer
Q46:
27 May Shift 2
Macro > Balance of Payments
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
The Foreign Exchange Market
Let us assume that a single Indian resident wants to visit London on a vacation (an import of tourist services). She will have to pay in pounds for her stay there. She will need to know where to obtain the pounds and at what price, this price is known as the exchange rate. Foreign Exchange Rate (also called Forex Rate) is the price of one currency in terms of another. It links the currencies of different countries and enables comparison of international costs and prices. For example, if we have to pay Rs 50 for $1 then the exchange rate is Rs 50 per dollar. The market in which national currencies are traded for one another is known as the foreign exchange market. The major participants in the foreign exchange market are commercial banks, foreign exchange brokers and other authorised dealers and monetary authorities. It is important to note that although participants themselves may have their own trading centres , the market itself is world-wide. There is a close and continuous contact between the trading centres and the participants dealing in more than one market.
Which among the following is not a direct participant in the foreign exchange market?
Correct Answer
Option 1
Correct Answer
Q47:
27 May Shift 2
Macro > Balance of Payments
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
The Foreign Exchange Market
Let us assume that a single Indian resident wants to visit London on a vacation (an import of tourist services). She will have to pay in pounds for her stay there. She will need to know where to obtain the pounds and at what price, this price is known as the exchange rate. Foreign Exchange Rate (also called Forex Rate) is the price of one currency in terms of another. It links the currencies of different countries and enables comparison of international costs and prices. For example, if we have to pay Rs 50 for $1 then the exchange rate is Rs 50 per dollar. The market in which national currencies are traded for one another is known as the foreign exchange market. The major participants in the foreign exchange market are commercial banks, foreign exchange brokers and other authorised dealers and monetary authorities. It is important to note that although participants themselves may have their own trading centres , the market itself is world-wide. There is a close and continuous contact between the trading centres and the participants dealing in more than one market.
...... in which national currencies are traded for one another.
Correct Answer
Option 4
Correct Answer
Q48:
27 May Shift 2
Macro > Balance of Payments
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
The Foreign Exchange Market
Let us assume that a single Indian resident wants to visit London on a vacation (an import of tourist services). She will have to pay in pounds for her stay there. She will need to know where to obtain the pounds and at what price, this price is known as the exchange rate. Foreign Exchange Rate (also called Forex Rate) is the price of one currency in terms of another. It links the currencies of different countries and enables comparison of international costs and prices. For example, if we have to pay Rs 50 for $1 then the exchange rate is Rs 50 per dollar. The market in which national currencies are traded for one another is known as the foreign exchange market. The major participants in the foreign exchange market are commercial banks, foreign exchange brokers and other authorised dealers and monetary authorities. It is important to note that although participants themselves may have their own trading centres , the market itself is world-wide. There is a close and continuous contact between the trading centres and the participants dealing in more than one market.
...... links the currencies of different countries and enables comparison of international costs and prices.
Correct Answer
Option 2
Correct Answer
Q49:
27 May Shift 2
Macro > Balance of Payments
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
The Foreign Exchange Market
Let us assume that a single Indian resident wants to visit London on a vacation (an import of tourist services). She will have to pay in pounds for her stay there. She will need to know where to obtain the pounds and at what price, this price is known as the exchange rate. Foreign Exchange Rate (also called Forex Rate) is the price of one currency in terms of another. It links the currencies of different countries and enables comparison of international costs and prices. For example, if we have to pay Rs 50 for $1 then the exchange rate is Rs 50 per dollar. The market in which national currencies are traded for one another is known as the foreign exchange market. The major participants in the foreign exchange market are commercial banks, foreign exchange brokers and other authorised dealers and monetary authorities. It is important to note that although participants themselves may have their own trading centres , the market itself is world-wide. There is a close and continuous contact between the trading centres and the participants dealing in more than one market.
If a British resident wants to visit India on a vacation he will have to pay in ......
Correct Answer
Option 1
Correct Answer
Q50:
27 May Shift 2
Macro > Balance of Payments
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
The Foreign Exchange Market
Let us assume that a single Indian resident wants to visit London on a vacation (an import of tourist services). She will have to pay in pounds for her stay there. She will need to know where to obtain the pounds and at what price, this price is known as the exchange rate. Foreign Exchange Rate (also called Forex Rate) is the price of one currency in terms of another. It links the currencies of different countries and enables comparison of international costs and prices. For example, if we have to pay Rs 50 for $1 then the exchange rate is Rs 50 per dollar. The market in which national currencies are traded for one another is known as the foreign exchange market. The major participants in the foreign exchange market are commercial banks, foreign exchange brokers and other authorised dealers and monetary authorities. It is important to note that although participants themselves may have their own trading centres , the market itself is world-wide. There is a close and continuous contact between the trading centres and the participants dealing in more than one market.
If we have to pay Rs 150 for 3 pounds, then the exchange rate is Rs........... per pound.
Correct Answer
Option 4
Correct Answer
CUET Economics 2025 27 May Shift 2 - Past Year Questions
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