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CUET Economics 2025 PYQs15 May Shift 1. Free, no login required.

Macro

past year questions, CUET Economics 2025 15 May Shift 1

Income & Employment

past year questions, Macro, CUET Economics 2025 15 May Shift 1

Easy

Given the equation of the consumption function as C=Cˉ+cYC = \bar{C} + cY, what does Cˉ\bar{C} donate?

Solution

✅ Correct Option: 4

Option 1 -> Average propensity to consume is C/Y, which represents the ratio of total consumption to total income.

Option 2 -> Marginal propensity to consume is represented by 'c' in the equation, showing the change in consumption due to change in income.

Option 3 -> Induced consumption is represented by cY, which is the consumption that depends on the level of income.

Option 4 -> Autonomous consumption is represented by C̄, which is consumption independent of income level.

Hence, Option 4: autonomous consumption -> In the consumption function C = C̄ + cY, C̄ (C-bar) represents autonomous consumption, which is the minimum level of consumption that occurs even when income (Y) is zero. This reflects essential consumption expenditures that households make regardless of their income level, often financed through savings, borrowing, or other means. It forms the intercept of the consumption function on the vertical axis. -> correct

Related questions:

2025: 3 June Shift 2

Arrange the given case study considering this process of ex-ante to ex-post investment.

(A) At the end of the year, his inventory goes up by Rs 70 only

(B) Due to an unforeseen upsurge in demand for his goods in the market, the volume of sales exceeds

(C) The producer plans to add Rs 100 worth of goods to his stock by the end of the year, which is his planned investment

(D) To meet this extra demand, he has to sell goods worth Rs 30 from his stock

Choose the correct answer from the options given below:

2022: 15 July Shift 2

Marginal propensity to save in zero when.

2022: 15 July Shift 2

Assume that in an economy increased consumption is equal to increased saving, how many times will the national income increase in such an economy with an increase in investment?

2025: 21 May Shift 1

A hypothetical economy tends to save only 25% of its additional income. How much additional income would be generated by it if the investment is increased by 50 crores?

2025: 21 May Shift 1

Match List-I with List-II

List-IList-II
(A) Effective demand(I) National Income
(B) Say's law of markets(II) Aggregate demand exceeds aggregate supply at full employment
(C) Inflationary gap(III) Supply creates its own demand
(D) Aggregate supply(IV) Aggregate demand at equilibrium level

Choose the correct answer from the options given below:

2025: 31 May Shift 1

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

  1. CC
  2. cYcY
  3. Cˉ\bar{C}
  4. YY

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