CUET Economics 2025 PYQs28 May Shift 1. Free, no login required.

According to ___________, if the marginal propensity to save in the economy increases, the total value of saving in the economy will not increase.

The rate at which Reserve Bank of India gives loans to the commercial Bank for longer duration:

1. Repo Rate.
2. Reverese Repo Rate.
3. Bank Rate.
4. Saving Rate.

Which government body is responsible for reporting GDP in India ?

1. Department of Revenue
2. Central Board of Direct Taxes
3. Central Statistics Office
4. Niti Ayog

A point outside the Production Possibility Curve represents:

1. A combination of goods can be produced but resources are underutilized.
2. A combination of goods can be produced, and the resources are fully utilized.
3. A combination of goods can not be produced as it is beyond the capacity of the economy.
4. A combination of goods can be produced and resources are appropriately utilized.

Arrange the following steps of determination of equilibrium income in chronological order if

C = 40 + 0.8Y, I = 10.

(A) Y = C + I

(B) 0.2Y = 50

(C) Y = 50 + 0.8Y

(D) Y = 250

Choose the correct answer from the options given below:

1. (A), (B), (C), (D)
2. (A), (C), (B), (D)
3. (B), (A), (D), (C)
4. (C), (B), (D), (A)

The book 'An Enquiry into the Nature and Causes of the Wealth of Nations' is written by:

1. J. M. Keynes
2. David Ricardo
3. Adam Smith
4. Karl Marx

It is difficult to record all international transactions accurately. Thus, there is a third element of Balance of Payment (BoP) (apart from the current and capital accounts) which adjusts inaccuracies to some extent that is called:

1. Reserves Change
2. Overall Balance
3. Errors and Omissions
4. Other Flows

Why indifference curves are convex to origin?

1. Due to the constant market rate of exchange.
2. Due to the increasing marginal rate of substitution.
3. Due to the constant marginal rate of substitution.
4. Due to a diminishing marginal rate of substitution.

Personal Disposable Income is?

1. The part of Aggregate Income which belongs to the household.
2. The part of Aggregate Income which belongs to the Government.
3. The part of Aggregate Income which belongs to the firm.
4. The part of Aggregate Income which belongs to the rest of the world.

How is the value of the average product calculated in the short-run?

1. By dividing the total product by the number of labor.
2. By dividing the change in total product by the change in labor.
3. By dividing the change in total product by the number of labor.
4. By dividing the total product by the change in labor.

Arrange the following money supply measures in chronological order.

(A) Excess supply will prevail in the economy.

(B) The tendency of prices to change to restore equilibrium.

(C) Suppose market supply is greater than market demand at a given price.

(D) Hence, the market is not in equilibrium.

Choose the correct answer from the options given below:

Match List-I with List-II

Choose the correct answer from the options given below:

1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
2. (A) - (II), (B) - (IV), (C) - (III), (D) - (I)
3. (A) - (I), (B) - (IV), (C) - (III), (D) - (II)
4. (A) - (IV), (B) - (I), (C) - (III), (D) - (II)

Consider the following statement related to investment:

(A) The common notion is that investment is using money to buy physical or financial assets.

(B) From an economist's view, investment is capital formation.

(C) While measuring the final output, the portion which comprises capital goods, is the Gross Investment of an Economy.

(D) The common and economic view regarding investment does not make any difference. It is the same.

Choose the correct answer from the options given below:

1. (A), (B) and (C) only
2. (A), (B) and (D) only
3. (A), (B), (C) and (D)
4. (B), (C) and (D) only

What does the rectangle OVBq₀ depicts in the given figure?

Arrange the following as per the theory of the 'Paradox of Thrift':

(A) Marginal Propensity to consume decreases.

(B) Amount of savings decreases.

(C) People become more thrifty.

(D) Equilibrium level of income decreases.

Choose the correct answer from the options given below:

1. (C), (A), (D), (B)
2. (A), (C), (B), (D)
3. (B), (A), (C), (D)
4. (C), (B), (A), (D)

Match List-I with List-II

Choose the correct answer from the options given below:

1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
2. (A) - (III), (B) - (II), (C) - (IV), (D) - (I)
3. (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
4. (A) - (IV), (B) - (III), (C) - (I), (D) - (II)

The basis of the difference in income and product method of National Income Accounting is best deciphered by which of the following?

1. Product method measures the aggregate value of final goods and services produced by all the firms.
2. Income method measures the sum total of consumption expenditure.
3. Product method refers to the final consumption expenditure on the goods and services produced by the firm.
4. Income method refers to the fixed cost of the goods and services produced by the firm.

How would the decrease in the price of Good-X impact the budget line, when the price of Good-Y and Income remain unchanged?

1. The intercept points of both Good-X and Good-Y will shift outward.
2. The intercept point of Good-X will shift outward and the intercept point of Good-Y will remain unchanged.
3. The intercept point of Good-X will shift inward and the intercept point of Good-Y will remain unchanged.
4. The intercept points of both Good-X and Good-Y will shift inward.

What would be the equilibrium number of firms in a market of identical firms, when market demand function $(Q_d)$, supply function of a single firm $(Q_s1)$ and equilibrium price (P) are given as

$Q_d = 180 - 2P$

$Q_{s1} = 15 + P$

$P = 15$

1. 5
2. 6
3. 8
4. 9

When the interest rate is very high, newspapers and media channels are predicting that it may fall in future and hence anticipate capital gains from bond-holdings. Hence, people convert their money into bonds.

In the above statement, which motive of money is highlighted?

1. Transaction Motive
2. Speculative Motive
3. Demonetisation Motive
4. Precautionary Motive

Which of the following statements are correctly explaining the relationship between the marginal revenue (MR) and price elasticity of demand?

(A). Price elasticity is less than 1 when MR is negative.

(B). Price elasticity is more than 1 when MR is negative.

(C). Price elasticity is more than 1 when MR is positive.

(D). Price elasticity is less than 1 when MR is positive.

Choose the correct answer from the options given below:

1. (A) and (D) only
2. (A) and (B) only
3. (B) and (D) only
4. (A) and (C) only

The General Theory of Employment, Interest and Money was published in......... and by .............

1. 2025, Adam Smith.
2. 1935, John Maynard Keynes.
3. 1936, John Maynard Keynes.
4. 1932, David Ricardo.

Which of the following would appropriately define a budget set?

Match List-I with List-II

Choose the correct answer from the options given below:

1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
2. (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
3. (A) - (IV), (B) - (III), (C) - (I), (D) - (II)
4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Arrange the following in correct sequence with respect to exchnage rate :-

(A) The central bank purchases dollars to absorb the excess supply.

(B) The exchange rate is fixed by the government higher than the market rate of exchange.

(C) The government wants to encourage exports.

(D) Supply of the dollars exceeds the demand for the dollar.

Choose the correct answer from the options given below:

1. (B), (A), (D), (C).
2. (D), (A), (C), (B).
3. (C), (A), (D), (B).
4. (C), (B), (D), (A).

When income increases, consumer spending increases. Spending on imported goods is also likely to __________.

1. Decrease.
2. Constant.
3. Increase.
4. Maybe an increase or maybe decrease.

Arrange the following statements considering the shape of long run marginal costs (LRMC).

(A) As output increases, LRAC initially falls (MC < AC).

(B) For the first unit of output, both LRMC and LRAC are the same.

(C) After a certain point, LRAC rises (MC > AC).

(D) LRMC curve is therefore a 'U'-shaped curve.

Choose the correct answer from the options given below:

1. (A), (B), (C), (D)
2. (B), (A), (C), (D)
3. (B), (A), (D), (C)
4. (C), (B), (D), (A)

Which of the following is correct regarding National Income Accounting ?

1. In order to compare the GDP figures of the same countries at different points of time, nominal GDP is used.
2. In order to compare the GDP figures of different countries, real GDP is used.
3. Flows are defined at a particular point of time.
4. Stocks are defined over a period of time.

Who is regarded as the father of modern economics?

1. Adam Smith.
2. John Maynard Keynes.
3. Amartya Sen.
4. Abraham Maslow.

What would be the value of the Marginal Rate of Substitution (MRS) when Good-X increases by 5 with the decrease of Good-Y by 15?

Official reserve sale refers to

1. The reserve bank sells foreign exchange when there is a deficit.
2. The International Monetary Fund sells foreign exchange when there is a deficit.
3. Net consequences of autonomous transactions.
4. The agreement in which national currencies are traded for one another.

Which of the following is not the central problem of the economy?

1. Why are the goods produced?
2. What to produce?
3. How are the goods produced?
4. For whom are the goods produced?

Which of the following statements is correct about commercial banks ?

A. Considered as Money Creating system of the Indian Economy

B. They accept deposits from the public at a lower interest rate and lend out part of these funds at a higher interest rate

C. The difference between the interest rate paid to depositors and charged for lending is called "Spread".

D. Commercial banks in isolation control the money supply in India.

Choose the correct answer from the options given below:

1. (A), (B), (C) and D
2. (A), (B) and (D) only
3. (A), (B) and (C) only
4. (A) and (D) only

Match List-I with List-II

Choose the correct answer from the options given below:

1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
2. (A) - (III), (B) - (IV), (C) - (II), (D) - (I)
3. (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
4. (A) - (IV), (B) - (III), (C) - (I), (D) - (II)

This is the index of prices of a given basket of commodities which are bought by the representative customer. Two years under consideration are kept – one is the base year, the other is the current year. First, the cost of purchase of a given basket of commodities in the base year is calculated. Then the cost of purchase of the same basket in the current year is calculated. Then we express the latter as a percentage of the former.

This index is called :

1. Customer Index Pricing
2. Consumer Index Pricing
3. Consumer Price Index
4. Customer Price Index

The short run supply curve is represented as?

1. The rising part of the marginal cost curve.
2. The rising part of the marginal cost curve from and above the minimum average variable cost curve.
3. The rising part of the marginal cost curve from and above the minimum average cost curve.
4. The marginal cost curve.

Which of the following statements is correct with reference to the Cash Reserve Ratio (CRR)?

A. The RBI decides a certain percentage of deposits which every bank must keep as reserves with the central bank

B. To ensure that no bank is 'over lending'

C. This is a legal requirement and is binding on the banks

D. Cash Reserve Ratio and Statutory Liquidity Ratio are the same concept.

Choose the correct answer from the options given below:

1. (A), (B) and (D) only
2. (A), (B) and (C) only
3. (A), (B), (C) and (D)
4. (B), (C) and (D) only

Gross Domestic Product at Market Price is the?

1. Gross Domestic Product at market price less net product taxes.
2. Market value of all final goods and services produced within a domestic territory of a country measured in a given financial year.
3. Expenditure to maintain the current GDP level.
4. Income earned by factors in the form of interest, profit, wages within the domestic territory of a country.

Match the following:

Which of the following combination is a correct match of the above?

1. (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
2. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
3. (A) - (II), (B) - (III), (C) - (IV), (D) - (I)
4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Consider the statements about Open Market Operations (OMO):

(A) OMO is a tool by which the Reserve Bank of India(RBI) controls money supply.

(B) OMO is an example of Qualitative Control.

(C) Selling bonds through RBI reduces the money supply.

(D) Outright OMOs are permanent in nature.

Choose the correct answer from the options given below:

1. (A), (B), (C), (D)
2. Only (A), (B), (C)
3. Only (A), (C), (D)
4. Only (A), (D)