CUET Economics 2025 Slot 18 Past Year Paper with Solutions

Q1:

Micro

>

Production & Costs

Medium

When some resources are shifted from Use 1 to Use 2 (given technology), the Marginal Rate of Transformation will

increases.

decreases.

remains constant.

zero.

Correct Answer

Option 1

Correct Answer

Explanation

Q2:

Macro

>

Balance of Payments

Medium

Identify the correct reasons that may affect the demand for foreign exchange in an economy.

(A) Import of visibles.

(B) Export of invisibles.

(C) Remittances by residents working abroad.

(D) Purchase of assets abroad.

Choose the correct answer from the options given below:

(A) and (B) only

(B) and (C) only

(C) and (D) only

(A) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q3:

Micro

>

Forms of Market

Medium

Match List-I with List-II

List-I	List-II
(A) Perfect Competition	(I) A typical characteristic of perfect competition.
(B) Perfectly elastic demand curve	(II) An individual firm is a price taker.
(C) Degree of price control under perfect competition	(III) The firm can sell any amount of its output at the prevailing price.
(D) Freedom of entry and exit	(IV) No control over price.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q4:

Macro

>

Balance of Payments

Medium

Which of the following statements is true about autonomous transactions?

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

These are also known as below the line items.

These only occur in capital account of BOP.

These items are done to correct the imbalance of BOP.

Correct Answer

Option 1

Correct Answer

Explanation

Q5:

Macro

>

National Income

Medium

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

An Indian citizen working in USA embassy located at New Delhi.

An Indian official working in Indian embassy in China.

An Indian diplomat visiting Canada for a conference.

An Indian working in an American company located in New York for a period of more than 1 year.

Correct Answer

Option 4

Correct Answer

Explanation

Q6:

Macro

>

Balance of Payments

Medium

Arrange the following economic events in chronological order:

(A) Gold was displaced by creating the Special Drawing Rights (SDRs).

(B) The Great Depression.

(C) First World War.

(D) Bretton Woods Conference.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q7:

Macro

>

Income & Employment

Medium

Match List-I with List-II

List-I	List-II
(A) Marginal Propensity to Consume	(I) C/Y
(B) Marginal Propensity to Save	(II) ΔC/ ΔY
(C) Average Propensity to Save	(III) S/Y
(D) Average Propensity to Consume	(IV) ΔS/ ΔY

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q8:

Micro

>

Market Equilibrium

Easy

Suppose the demand and supply curves of salt are given by:

$Q_d = 1000 - p$

$Q_s = 700 + 2p$

Find the equilibrium price and quantity.

Equilibrium price = 100, Equilibrium Quantity = 900

Equilibrium price = 200, Equilibrium Quantity = 900

Equilibrium price = 200, Equilibrium Quantity = 600

Equilibrium price = 100, Equilibrium Quantity = 600

Correct Answer

Option 1

Correct Answer

Explanation

Q9:

Macro

>

Government Budget

Hard

Which of the following statements are incorrect?

(A) Loans from IMF is a Revenue Receipt.

(B) Capital Receipts are shown on the liabilities of the balance sheet.

(C) Interest payment by the government represents a representation of fiscal deficit.

(D) Revenue Deficit is the excess of capital receipts over the revenue receipts.

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (C) and (D) only

(A), (B) and (C) only

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation

Q10:

Micro

>

Market Equilibrium

Medium

If due to fall in price, total expenditure on the commodity falls, it indicates?

price elasticity of demand is zero.

price elasticity of demand is less than unity.

price elasticity of demand is infinity.

price elasticity of demand is greater than unity.

Correct Answer

Option 2

Correct Answer

Explanation

Q11:

Macro

>

Income & Employment

Easy

__________ refers to that level of aggregate demand, which can be met by the corresponding supply in the economy.

Autonomous consumption

Effective demand

Excess demand

Deficient demand

Correct Answer

Option 2

Correct Answer

Explanation

Q12:

Macro

>

National Income

Medium

Arrange the following steps in the calculation of national income, by income method in correct sequence:

(A) Add Net Factor from Abroad to arrive at National Income.

(B) Estimate the factor income estimated by each sector.

(C) Identify and classify the income-generating units.

(D) Calculate domestic factor income.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q13:

Macro

>

Introduction

Medium

Match List-I with List-II

List-I	List-II
(A) An enquiry into the nature and cause of the wealth of nations	(I) 1919
(B) The Economic Consequences of the Peace	(II) 1929
(C) General Theory of Employment, Interest and Money	(III) 1776
(D) The Great Depression	(IV) 1936

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q14:

Macro

>

Introduction

Easy

Which of the following is not a characteristic of a capitalist economy?

There is private ownership of means of production.

There is public ownership of means of production.

There is sale and purchase of labour services at a price which is called the wage rate.

Production takes place for the welfare of society.

Correct Answer

Option 2

Correct Answer

Explanation

Q15:

Macro

>

National Income

Medium

Identify which of the following statements is incorrect with reference to an economy?

Sum of Gross Domestic Product (GDP) and Gross National Product (GNP) is always equal to zero.

Excess of Gross Domestic Product (GDP) over Gross National Product (GNP) is possible.

Equality between Gross Domestic Product (GDP) and Gross National Product (GNP) is possible.

Excess of Gross National Product (GNP) over Gross Domestic Product (GDP) is possible.

Correct Answer

Option 1

Correct Answer

Explanation

Q16:

Micro

>

Introduction

Easy

Which of the following is not concerned with the problem of choice?

Alternative use of the resources.

Unlimited wants.

Limited (scarce) resources.

Excessive Income.

Correct Answer

Option 4

Correct Answer

Explanation

Q17:

Macro

>

Balance of Payments

Medium

Match List-I with List-II

List-I	List-II
(A) Exchange Rate	(I) Supply of foreign exchange = Demand of foreign currency.
(B) Gold standard system of exchange rate	(II) Domestic currency loses its value in relation to a foreign currency.
(C) Par rate of exchange	(III) External value of the domestic currency.
(D) Currency Depreciation	(IV) An old variant of fixed exchange rate.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q18:

Micro

>

Market Equilibrium

Medium

The price elasticity of supply of a commodity is 2.5. At a price of Rs.5 per unit, its quantity supplied is 300 units. What will be its quantity supplied at a price of Rs.4 per unit?

300 Units.

450 Units.

600 Units.

150 Units.

Correct Answer

Option 4

Correct Answer

Explanation

Q19:

Macro

>

Money & Banking

Medium

Arrange the following statements in sequential order.

(A) Rise in prices.

(B) Central Bank increases margin requirement.

(C) Situation of excess demand in the economy.

(D) Aggregate demand falls.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q20:

Macro

>

Income & Employment

Hard

In an economy if all individual increases the proportion of income they save, then arrange following statements in their chronological order.

(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 rotates downwards.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q21:

Micro

>

Production & Costs

Easy

What does break even point indicate?

Total Revenue (TR) > Total Cost (TC)

Total Revenue (TR) < Total Cost (TC)

Total Revenue (TR) = Total Cost (TC)

Total Cost (TC) = 0

Correct Answer

Option 3

Correct Answer

Explanation

Q22:

Macro

>

Government Budget

Medium

Which of the following are the functions of Government Budget?

(A) Restriction.

(B) Allocation.

(C) Redistribution.

(D) Stabilisation.

Choose the correct answer from the options given below:

(A), (C) and (D) only

(B), (C) and (D) only

(A), (B), (C) and (D)

(A), (B) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation

Q23:

Macro

>

Government Budget

Medium

Identify which of the following statements are correct?

(A) Fiscal deficit is the difference between total revenue and total expenditure excluding borrowing of the government.

(B) Fiscal deficit is the difference between total planned expenditure and total planned receipts of the government.

(C) Primary deficit is the difference between total planned receipt and interest payments.

(D) Fiscal deficit is the sum of primary deficit and interest payment.

Choose the correct answer from the options given below:

(B) and (D) only

(A) and (D) only

(C) and (D) only

(A) and (C) only

Correct Answer

Option 2

Correct Answer

Explanation

Q24:

Micro

>

Market Equilibrium

Medium

When will increase in supply bring down the price, leaving the quantity demanded unchanged?

When demand for the commodity is perfectly elastic.

When demand for the commodity is perfectly inelastic.

When demand for the commodity is less elastic.

When demand for the commodity is more elastic.

Correct Answer

Option 2

Correct Answer

Explanation

Q25:

Micro

>

Production & Costs

Medium

Under perfect competition, for the producer to be in equilibrium:

AR = MR = AC and AC must be rising.

AR = MR = MC and MC must be falling.

AR = MR = TC and TC must be rising.

AR = MR = MC and MC must be rising.

Correct Answer

Option 4

Correct Answer

Explanation

Q26:

Micro

>

Production & Costs

Medium

When Marginal Product is constant?

Total Product is also constant.

Total Product is zero.

Total Product is increasing at a constant rate.

Total Product is decreasing at a constant rate.

Correct Answer

Option 3

Correct Answer

Explanation

Q27:

Micro

>

Consumer Behaviour

Medium

Law of demand is violated when?

Income effect is negative.

Substitution effect is negative.

Negative income effect is greater than substitution effect.

Negative income effect is less than substitution effect.

Correct Answer

Option 3

Correct Answer

Explanation

Q28:

Micro

>

Consumer Behaviour

Easy

The Law of Diminishing Marginal Utility states that when more and more units of a commodity are consumed, Marginal Utility __________

begins to increase.

remains constant.

begins to decrease.

becomes zero.

Correct Answer

Option 3

Correct Answer

Explanation

Q29:

Micro

>

Consumer Behaviour

Medium

Match List-I with List-II

List-I	List-II
(A) Consumer's equilibrium	(I) ΔY/ ΔX
(B) Slope of IC	(II) Budget line rotates to the right starting from the Y axis
(C) Px falls	(III) Consumer should move downwards to the right along the IC
(D) MRSxy > Px/Py	(IV) Optimum choice of the consumer

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation

Q30:

Macro

>

Balance of Payments

Easy

Balance of Payments of an economy records.

Income and the expenditure of the government.

Inflow and outflow of the funds of the government.

Inflow and outflow of visible items into/ from the rest of the world.

Inflow/ outflow of foreign exchange to/ from the economy.

Correct Answer

Option 4

Correct Answer

Explanation

Q31:

Macro

>

National Income

Medium

Identify the correct sequence with regard to externalities:

(A) Leads to negative externalities.

(B) Production by the refining industry pollutes nearby rivers.

(C) Causes harm to people.

(D) Dependent may loose their livelihood.

Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q32:

Micro

>

Forms of Market

Medium

What is the shape of Average Revenue (AR) curve under perfect competition?

Horizontal straight line.

Vertical straight line.

Rectangular hyperbola.

Downward to the right.

Correct Answer

Option 1

Correct Answer

Explanation

Q33:

Micro

>

Market Equilibrium

Easy

What would price ceiling lead to when the maximum price is fixed lower than the equilibrium price?

Excess Supply.

Deficit Supply.

Excess Demand.

Deficit Demand.

Correct Answer

Option 3

Correct Answer

Explanation

Q34:

Micro

>

Market Equilibrium

Medium

An upward sloping straight line supply curve shooting from the X axis indicates the:

Elasticity of supply is less than one.

Elasticity of supply is equal to one.

Elasticity of supply is greater than one.

Elasticity of supply is equal to zero.

Correct Answer

Option 1

Correct Answer

Explanation

Q35:

Micro

>

Market Equilibrium

Medium

Which of the following is a demerit of price ceiling?

(A) Black Marketing.

(B) Stability of income of producers.

(C) Low quality product is offered to consumer.

(D) Standing in long queues to get allocated quota of the commodity.

Choose the correct answer from the options given below:

(A), (B) and (C) only

(A), (B) and (D) only

(A), (B), (C) and (D)

(A), (C) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q36:

Micro

>

Production & Costs

Medium

Average Fixed Cost (AFC) is indicated by?

A rectangular hyperbola.

A straight line parallel to X axis.

A straight line parallel to Y axis.

A U- shaped curve.

Correct Answer

Option 1

Correct Answer

Explanation

Q37:

Macro

>

National Income

Easy

The value of nominal GDP is $1100 and the value of real GDP is $1000. Find the value of GDP deflator.

0.9

1.1

1

0.8

Correct Answer

Option 2

Correct Answer

Explanation

Q38:

Macro

>

Government Budget

Medium

Primary Deficit can be zero if?

Fiscal Deficit = Interest Payments.

Fiscal Deficit > Interest Payments.

Revenue deficit < Interest payments.

Fiscal Deficit < Interest Payments.

Correct Answer

Option 1

Correct Answer

Explanation

Q39:

Micro

>

Production & Costs

Medium

Stages of production are the consequences of:

Law of Diminishing Marginal Rate of Transformation.

Law of Diminishing Marginal Utility.

Law of Variable Proportions.

Law of Diminishing Returns to Scale.

Correct Answer

Option 3

Correct Answer

Explanation

Q40:

Micro

>

Consumer Behaviour

Easy

A shift in the budget line, when prices are constant, is due to.

Change in demand of the commodity.

Change in the income of the consumer.

Change in preferences of the consumer.

Change in utility derived.

Correct Answer

Option 2

Correct Answer

Explanation

Q41:

Macro

>

Money & Banking

Easy

Comprehension:

Read the passage carefully and answer the questions based on the passage:

RBI Monetary Policy

The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fall out. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. RBI noted that the economic activity had started to recover from the lows of April-May. Meanwhile, migrant labor is returning to work in urban areas, and factories and construction activities are coming back to life. This is also reflected in rising levels of energy consumption and population mobility. In cities, traffic intensity is rising rapidly; online commerce is booming; and people are getting back to offices. The mood of the nation has shifted from fear and despair to confidence and hope. Some of this optimism is being reflected in people’s expectations. In September 2020, round of the RBI’s survey, households expects inflation to decline modestly over the next three months, indicative of hope that supply chains are mending.

The Reserve Bank of India (RBI) __________ government securities in a bid to ________ the stock of money in the economy.

sells; decrease

purchases; decrease

sells; increase

purchases; not change

Correct Answer

Option 1

Correct Answer

Explanation

Q42:

Macro

>

Money & Banking

Easy

Comprehension:

Read the passage carefully and answer the questions based on the passage:

RBI Monetary Policy

The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fall out. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. RBI noted that the economic activity had started to recover from the lows of April-May. Meanwhile, migrant labor is returning to work in urban areas, and factories and construction activities are coming back to life. This is also reflected in rising levels of energy consumption and population mobility. In cities, traffic intensity is rising rapidly; online commerce is booming; and people are getting back to offices. The mood of the nation has shifted from fear and despair to confidence and hope. Some of this optimism is being reflected in people’s expectations. In September 2020, round of the RBI’s survey, households expects inflation to decline modestly over the next three months, indicative of hope that supply chains are mending.

A cut in Repo Rate would lead to __________ in Money Supply and a cut in Reverse Repo Rate would lead to __________ in deposits of commercial bank to RBI

increase; increase

decrease; decrease

decrease; increase

increase; decrease

Correct Answer

Option 4

Correct Answer

Explanation

Q43:

Macro

>

Money & Banking

Easy

Comprehension:

Read the passage carefully and answer the questions based on the passage:

RBI Monetary Policy

The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fall out. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. RBI noted that the economic activity had started to recover from the lows of April-May. Meanwhile, migrant labor is returning to work in urban areas, and factories and construction activities are coming back to life. This is also reflected in rising levels of energy consumption and population mobility. In cities, traffic intensity is rising rapidly; online commerce is booming; and people are getting back to offices. The mood of the nation has shifted from fear and despair to confidence and hope. Some of this optimism is being reflected in people’s expectations. In September 2020, round of the RBI’s survey, households expects inflation to decline modestly over the next three months, indicative of hope that supply chains are mending.

Why did Monetary Policy Committee keep its policy rate unchanged in its recent meet?

Due to recovery of economic activities.

To avoid unnecessary deflation.

Because of irrational decision of committee.

To reduce economic activities.

Correct Answer

Option 1

Correct Answer

Explanation

Q44:

Macro

>

Money & Banking

Easy

Comprehension:

Read the passage carefully and answer the questions based on the passage:

RBI Monetary Policy

The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fall out. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. RBI noted that the economic activity had started to recover from the lows of April-May. Meanwhile, migrant labor is returning to work in urban areas, and factories and construction activities are coming back to life. This is also reflected in rising levels of energy consumption and population mobility. In cities, traffic intensity is rising rapidly; online commerce is booming; and people are getting back to offices. The mood of the nation has shifted from fear and despair to confidence and hope. Some of this optimism is being reflected in people’s expectations. In September 2020, round of the RBI’s survey, households expects inflation to decline modestly over the next three months, indicative of hope that supply chains are mending.

Which of the following is not a monetary measure adopted by Reserve Bank of India?

Change in Cash Reserve Ratio.

Change in Bank Rate.

Change in Public Expenditure.

Change in Open Market Operations.

Correct Answer

Option 3

Correct Answer

Explanation

Q45:

Macro

>

Money & Banking

Easy

Comprehension:

Read the passage carefully and answer the questions based on the passage:

RBI Monetary Policy

The Reserve Bank of India, in its monetary policy meet decided to keep the key policy rates unchanged after two emergency rate cuts amid the COVID-19 disruptions and its ensuing economic fall out. Consequently, the repo rate stands unchanged at 4% and the reverse repo rate at 3.35%. RBI noted that the economic activity had started to recover from the lows of April-May. Meanwhile, migrant labor is returning to work in urban areas, and factories and construction activities are coming back to life. This is also reflected in rising levels of energy consumption and population mobility. In cities, traffic intensity is rising rapidly; online commerce is booming; and people are getting back to offices. The mood of the nation has shifted from fear and despair to confidence and hope. Some of this optimism is being reflected in people’s expectations. In September 2020, round of the RBI’s survey, households expects inflation to decline modestly over the next three months, indicative of hope that supply chains are mending.

Repo Rate is the rate at which.

Commercial banks purchase government securities from the central bank.

Commercial banks can take loans from the central bank.

Commercial banks can keep their deposits with the central bank.

Short term loans are given by commercial banks.

Correct Answer

Option 2

Correct Answer

Explanation

Q46:

Macro

>

Income & Employment

Medium

Comprehension:

Read the passage carefully and answer the questions based on the passage:

Calculate various parameters of Aggregate Demand, Aggregate Supply and related concepts

Income (in ₹ Crore)	Consumption (in ₹ Crore)
0	50
50	75
100	100
200	150
300	200
400	250

When income is more than consumption, then value of Average Propensity to Save (APS) is.

More than zero.

Equal to zero.

Less than zero.

More than one.

Correct Answer

Option 1

Correct Answer

Explanation

Q47:

Macro

>

Income & Employment

Medium

Comprehension:

Read the passage carefully and answer the questions based on the passage:

Calculate various parameters of Aggregate Demand, Aggregate Supply and related concepts

Income (in ₹ Crore)	Consumption (in ₹ Crore)
0	50
50	75
100	100
200	150
300	200
400	250

When income is less than consumption, value of Average Propensity to Consume (APC) is.

More than 1.

Less than 1.

Less than zero.

Equal to zero.

Correct Answer

Option 1

Correct Answer

Explanation

Q48:

Macro

>

Income & Employment

Medium

Comprehension:

Read the passage carefully and answer the questions based on the passage:

Calculate various parameters of Aggregate Demand, Aggregate Supply and related concepts

Income (in ₹ Crore)	Consumption (in ₹ Crore)
0	50
50	75
100	100
200	150
300	200
400	250

From the given table, identify the level of income, where Average Propensity to Save (APS) becomes zero:

50

100

200

0

Correct Answer

Option 2

Correct Answer

Explanation

Q49:

Macro

>

Income & Employment

Medium

Comprehension:

Read the passage carefully and answer the questions based on the passage:

Calculate various parameters of Aggregate Demand, Aggregate Supply and related concepts

Income (in ₹ Crore)	Consumption (in ₹ Crore)
0	50
50	75
100	100
200	150
300	200
400	250

_____________ is the minimum level of consumption done at zero income level and is independent of income.

Autonomous consumption

Investment consumption

Ex-ante consumption

Ex-post consumption

Correct Answer

Option 1

Correct Answer

Explanation

Q50:

Macro

>

Income & Employment

Medium

Comprehension:

Read the passage carefully and answer the questions based on the passage:

Calculate various parameters of Aggregate Demand, Aggregate Supply and related concepts

Income (in ₹ Crore)	Consumption (in ₹ Crore)
0	50
50	75
100	100
200	150
300	200
400	250

Calculate Marginal Propensity to Save (MPS) and Average Propensity to Consume (APC) at income level of 200.

MPS = 0.4; APC = 0.75

MPS = 0.2; APC = 0.8

MPS = 0.5; APC = 0.75

MPS = 0.4; APC = 0.8

Correct Answer

Option 3

Correct Answer

Explanation

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CUET Economics 2025 2 June Shift 1 Past Year Question Paper

CUET Economics Past Year Questions (Topic-Wise)