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

Macro

past year questions, CUET Economics 2025 31 May Shift 1

National Income

past year questions, Macro, CUET Economics 2025 31 May Shift 1

Medium

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

Solution

✅ Correct Option: 1

Option 1 -> Includes Savings, Imports, and Outward FDI as leakages, excludes Investment - this correctly identifies leakages.

Option 2 -> Includes Investment as a leakage, which is incorrect as Investment is an injection, not a leakage.

Option 3 -> Excludes Domestic Savings but includes Investment - both errors make this incorrect.

Option 4 -> Includes Investment as a leakage and excludes Outward FDI - incorrect classification of both.

Hence, Option 1: (A), (B) and (C) only -> In the circular flow of income, leakages are withdrawals that reduce money circulation in the domestic economy. (A) Domestic Savings represents money not spent on consumption; (B) Imports drain money to foreign economies; (C) Outward FDI transfers domestic capital abroad. All three constitute leakages. However, (D) Investment is an injection (not a leakage) as it adds spending into the economy. The three primary leakages are Savings, Taxes, and Imports, while injections are Investment, Government Spending, and Exports. -> correct

Related questions:

2025: 2 June Shift 1

Identify which of the following is not considered as 'Normal Resident' of India?

2022: 30 Aug Shift 2

Given below are the steps for calculation of National Income by value added method. Place them in the correct sequence.

(A) Estimate Gross Domestic Product at market price

(B) Calculate Net Domestic Product at factor cost

(C) Estimation of value of output produced by each firm in all sectors of the economy during the year

(D) Calculate Net National Product at factor cost

Choose the correct answer from the options given below :

2025: 3 June Shift 1

When nominal Gross Domestic Product is ₹840 crorer and price index is 120, then the Real Gross Domestic Product will be:

2023: 11 June Shift 3

__________ refer to the benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised).

2025: 28 May Shift 1

Match List-I with List-II

List-IList-II
(A) Real GDP(I) Commodities traded in bulk.
(B) Nominal GDP(II) GDP evaluated at constant prices.
(C) Consumer Price Index(III) Commodities bought by representative consumers.
(D) Wholesale Price Index(IV) GDP evaluated at current market prices.

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)

2026: 19 May Shift 2

Find the example of final expenditure among the following.

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