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CUET Economics 2025 PYQs3 June Shift 2. Free, no login required.

Macro

past year questions, CUET Economics 2025 3 June Shift 2

National Income

past year questions, Macro, CUET Economics 2025 3 June Shift 2

Medium

The change in the inventory of a firm is treated as an investment. What are the major categories of investment?

(A) Investment Expenditure.

(B) Autonomous Investment.

(C) Fixed Business Investment.

(D) Residential Investment.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 4

Option 1 -> Investment Expenditure is a broad term encompassing all investment spending, not a specific category.

Option 2 -> Excludes Fixed Business Investment, which is a fundamental major category of investment.

Option 3 -> Includes Investment Expenditure which is too general to be classified as a major category.

Option 4 -> Correctly identifies the three major categories: Autonomous Investment (investment independent of income levels), Fixed Business Investment (machinery, equipment, structures), and Residential Investment (housing construction).

Hence, Option 4: (B), (C) and (D) only -> The major categories of investment include Autonomous Investment (investment that doesn't depend on current income), Fixed Business Investment (expenditure on plant, machinery, and equipment by businesses), and Residential Investment (construction of new housing units). Investment Expenditure is merely a general term for total investment spending rather than a specific category. These three categories, along with inventory investment (mentioned in the question), form the complete classification of investment in an economy. -> correct

Solution figure for CUET Economics 2025 3 June Shift 2 question 19 (Macro) Solution figure for CUET Economics 2025 3 June Shift 2 question 19 (Macro)

This is the official answer key of NTA for reference. Only those who selected Option 4 are awarded marks.

Related questions:

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A firm wants to raise the inventories from 400 to 600 shirts. Expecting sales of 2000 shirts during the year then firm produces 2200 shirts. Rise of the inventories by this process is called:

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Arrange the statements in sequence of GDP composition on the expenditure side as per the annual report, Reserve Bank of India.

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(C) Government Final Consumption Expenditure.

(D) Net Exports.

Choose the correct answer from the options given below:

2022: 15 July Shift 2

Identify the correct statements about the externalities as a limitation of GDP and welfare.

A. GDP as measured does not include external production of goods.

B. Inverse relationship between negative externality and welfare.

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Choose the correct answer from the options given below :

2022: 30 Aug Shift 2

Which of the following is NOT included in estimation of national income ?

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