CUET Economics 2025 PYQs31 May Shift 1. Free, no login required.

Choose the correct statements from the following.

(A) The collection of all possible combinations of goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called the production possibility frontier.

(B) Slope of production possibility frontier is called marginal opportunity cost.

(C) In positive economic analysis, we study how the different mechanisms function.

(D) Scarcity of resources gives rise to the problem of choice.

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

Why does central bank is called the lender of last resort?

1. It lends money to the government to finance its budget deficit.
2. Central bank lends money to trade and industry to support their export operations.
3. When a country runs out of money, the central bank prints more money.
4. Central bank lends money to banks at all times.

Suppose, in a flexible exchange rate system, demand for foreign goods and services increases due to increased international travel by Indians.

Arrange the following statements in correct sequence.

(A) Exchange rate increases.

(B) Exports from India become more affordable for foreigners.

(C) India's income increases by keeping other factors constant.

(D) The demand curve shifts towards the right.

Choose the correct answer from the options given below:

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

Which of the following statements about national debt are correct?

(A) Deficit can be thought of as a flow variable which adds to the stock of debt

(B) The government finances debt through taxation, borrowing or printing money

(C) Debt owned to foreigners involves a higher burden than debt owned to domestic agents and institutions

(D) Government's debt financing crowds out private borrowers in financial markets

Choose the correct answer from the options given below:

Arrange the following statements in sequential order.

(A) Aggregate demand will increase.

(B) Induce the public to borrow more.

(C) Central Bank will decrease the reverse repo rate.

(D) Ex-ante aggregate demand is less than Ex-ante aggregate supply

Choose the correct answer from the options given below:

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

Select the INCORRECT feature of the market with respect to perfect competition.

1. The market consists of a large number of buyers and sellers.
2. Entry into the market as well as exit from the market are free for firms.
3. Buyers are price makers.
4. There is perfect knowledge.

Which of the following are correct statements regarding Gross Domestic Product (GDP)?

(A) GDP is a measure of the welfare of a country.

(B) Real GDP is measured at current market prices.

(C) Expenditure method estimate =Income Method estimate =Product Method estimate=GDP of a country.

(D) Gross National Product at factor cost = GDP$_{MP}$ + Net factor income from abroad.

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

Suppose there is a fresh deposit of Rs. 10,000 in banks and cash reserve ratio is 0.5. How much is total deposit creation?

1. 20,000
2. 50,000
3. 10,000
4. 5000

Which of the following constitutes as 'leakages' from the circular flow of income.

(A) Domestic Savings.

(B) Imports.

(C) Outward Foreign Direct Investment.

(D) Investment.

Choose the correct answer from the options given below:

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

How will an increase in the consumer's income affect the budget line?

1. Parallel inward shift of budget line.
2. Parallel outwards shift in budget line.
3. The budget line rotates outwards.
4. Budget line rotates and shifts outwards.

Whatever is left over is appropriated by the entrepreneur is called ..................

1. Profit.
2. Interest.
3. Subsidies.
4. Capital.

If demand remains constant at any changes in price of commodity then the elasticity of demand for that commodity will be....................

1. Zero
2. One
3. Between one and zero
4. Infinite

Match List-I with List-II

Choose the correct answer from the options given below:

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

How much consumption will increase when income increases by Rs. 5000 at given marginal propensity to consume of 0.60.

1. Increase in consumption= Rs. 5000
2. Increase in consumption= Rs. 4000
3. Increase in consumption= Rs. 3000
4. Increase in consumption= Rs. 2000

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

Select the INCORRECT condition for profit maximisation in the perfect market.

1. The price must equal to MC.
2. Marginal cost must be non-decreasing.
3. Price must be less than the average cost.
4. Price must be greater than the average cost.

In the consumption function $C = \bar{C} + cY$; autonomous consumption denoted by:

1. $C$
2. $cY$
3. $\bar{C}$
4. $Y$

The firm's total variable cost at output q₁ is

Which of the following are part of Capital account.

(A) Foreign Direct Investment.

(B) Offshore Funds.

(C) Portfolio Investment.

(D) Repayment of Loans.

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

Arrange the following in chronological order.

(A) Barter System

(B) Currency notes

(C) Precious metals

(D) Online transfer of money.

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 Reserve Bank sells foreign exchange when there is a deficit. This move of RBI is known by which of the following?

1. Official reserve sale.
2. Balance of payments deficit.
3. Balance of payments surplus.
4. Balance of trade.

Arrange the following statements in chronological order in respect to the increase in the proportion of income people save.

(A) Marginal propensity to consume decreases.

(B) The level of income decreases.

(C) The amount of savings remains the same.

(D) The aggregate demand curve shifts downwards.

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. (A), (D), (B), (C)

When the government has taken certain decision that can financed through the budget and can be used without any direct payment. Such move is known as..........

1. Public Provision.
2. Public Production.
3. Public Goods.
4. Private Goods.

If the market rate of interest is already low enough so that everybody expects it to rise in future, causing capital losses, nobody will wish to hold bonds. This situation is called.............

1. Jevons Paradox
2. Liquidity trap
3. Paradox of thrift
4. Double coincidence of wants

The equation of the demand curve : pq = e, where e is a constant.

Select the INCORRECT statement:

1. The demand curve is a rectangular hyperbola.
2. The value of p times q is constant.
3. The elasticity of demand at all points located on this demand curve is greater than 1.
4. At every point of consumption, the expenditure remains the same.

Two indifference curves can never intersect each other as ...............

1. They give the same level of satisfaction.
2. They give different levels of satisfaction.
3. They are concave to the origin.
4. They are convex to the origin.

When autonomous investment increases in a two-sector model, then.

1. The aggregate demand curve shifts upwards.
2. Output/GDP increases by the same magnitude as the change in investment.
3. Autonomous expenditure increases by the same magnitude as the change in investment.
4. The consumption curve shifts upwards.

From the following statements choose the effects of devaluation of domestic currency.

(A) Exchange rate is fixed.

(B) Indian Government increases the exchange rate.

(C) Domestic currency become cheaper.

(D) The Exports of India will rise.

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

Defense of the nation is a service provided by our armed forces. This service is.

1. Non -Public good which is non-rival and non excludable in consumption.
2. Public good which is non-rival and non excludable in consumption.
3. Non -Public good which is rival and non-excludable in consumption.
4. Public good which is rival and non-excludable in consumption.

Match List-I with List-II

Choose the correct answer from the options given below:

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

Among the following, what is assumed as the appropriate justification for taking the price level as fixed?

1. An economy with unskilled workforce.
2. An economy having scarcity of resources.
3. An economy with excess use of resources.
4. An economy with unused resources.

When the price elasticity of supply is equal to zero. Then..........

1. Supply curve is sloping downward.
2. Supply curve is horizontal.
3. Supply curve is upwards sloping.
4. Supply curve is vertical.

Suppose in the long run, the government imposed a tax on the supply of a commodity. How does it affect the equilibrium quantity of commodity?

1. The quantity of commodity will decrease.
2. The quantity of commodity will increase.
3. The quantity of commodity will remain same.
4. The supply curve will shift rightwards which will decrease quantity of commodity.

The wage rate at which the labour market is in equilibrium is a point where.

1. Labour demand=0
2. Labour Demand= Labour Supply
3. Labour Supply=Labour Demand=0
4. Wages= Marginal Revenue from labour x Price

Addition to the stock of physical capital and changes in the inventory of a producer is known as:

1. Asset Appreciation.
2. Consumption.
3. Stock.
4. Investment.

From the following figure, how to obtain an aggregate demand function?

From the following which is incorrect with respect to firm's profit maximization in long run?

1. Price = Long Run Marginal Cost
2. LRMC is first decreasing and then increasing
3. Price = Short Run Marginal Cost
4. Price ≥ Long Run Average Variable Cost

Which of the following approach measures economic activity by adding the aggregate value of final goods and services newly produced in a nation during a fixed period of time?