Q1:
21 May Shift 1
Macro > Income & Employment
Medium
The aggregate demand curve of an economy is parallel to X axis. What will be the value of investment multiplier in this economy?
Correct Answer
Option 1
Correct Answer
CUET Economics 2025 21 May Shift 1 PYQs
No login required. No pop-ups. We have all previous-year questions with solutions for free!
Q2:
21 May Shift 1
Macro > Income & Employment
Medium
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?
Correct Answer
Option 3
Correct Answer
Q3:
21 May Shift 1
Macro > Income & Employment
Medium
Match List-I with List-II | List-I | List-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:
Correct Answer
Option 1
Correct Answer
Q4:
21 May Shift 1
Micro > Consumer Behaviour
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Budget line | (I) $-\frac{p_1}{p_2}$ | | (B) Budget constraint | (II) Bundles available to the consumer | | (C) Budget set | (III) $p_1X_1 + p_2X_2 = M$ | | (D) Slope of budget line | (IV) $p_1X_1 + p_2X_2 \leq M$ | Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q5:
21 May Shift 1
Micro > Consumer Behaviour
Medium
Arun spends 200 rupees on good X irrespective of its price whereas Varun buys 10 units of Good X irrespective of its price. The respective values of the price elasticity of demand for Good X for both the consumers is
Correct Answer
Option 2
Correct Answer
Q6:
21 May Shift 1
Macro > Balance of Payments
Medium
Under __________ system, the central bank intervenes to buy and sell foreign currencies in an attempt to moderate exchange rate movements whenever they feel that such actions are appropriate.
Correct Answer
Option 3
Correct Answer
Q7:
21 May Shift 1
Macro > National Income
Medium
Which of the following are true about national income and related aggregates? (A) National income includes factor income earned from abroad but does not include factor income paid abroad. (B) Domestic income does not include factor income earned from abroad but includes factor income paid to abroad (C) Domestic income include both factor income earned from abroad and factor income paid to abroad (D) National income can never be smaller than domestic Income. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q8:
21 May Shift 1
Macro > National Income
Medium
Arrange the following in order as per Income method of measuring national Income. (A) Classifying the production units into primary, secondary and tertiary sector on the basis of their occupational activities (B) Adding the net factor income from abroad. (C) Determination of domestic income. (D) Finding the factor payments made by each production unit and classifying it into compensation of employees, operating surplus and mixed income. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q9:
21 May Shift 1
Macro > Money & Banking
Easy
Rajesh is a weaver and is looking for food for his family. He approaches Shyam who is a farmer and offers to exchange clothes in return for wheat. However, Shyam says that his family needs shoes, not clothes. Which shortcoming of the barter system is being highlighted in this case?
Correct Answer
Option 1
Correct Answer
Q10:
21 May Shift 1
Macro > Money & Banking
Easy
If the central bank purchases the government securities from the commercial banks, it is likely to
Correct Answer
Option 1
Correct Answer
Q11:
21 May Shift 1
Macro > Income & Employment
Medium
In a hypothetical economy, the consumption function is given as C = 100 + 0.75Y. The autonomous investment in the economy is 200 crores. The equilibrium level of income would be______?
Correct Answer
Option 1
Correct Answer
Q12:
21 May Shift 1
Macro > Money & Banking
Medium
An economy is facing inflationary pressures and the central bank of the country has been asked to control the situation. Arrange the action and result in sequential order. (A) Credit has become costlier and people stop borrowing. (B) Increase in Repo rate by the central bank. (C) Reduction in the money supply and aggregate demand falls. (D) Increase in the market lending rate by commercial banks. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q13:
21 May Shift 1
Micro > Forms of Market
Easy
In perfectly competitive market, the demand curve of a firm is?
Correct Answer
Option 4
Correct Answer
Q14:
21 May Shift 1
Micro > Production & Costs
Medium
Manoj is a seller in a market where more can be sold only by lowering the price of the goods. Which of the following will be true about his revenue. (A) Total revenue will increase at a constant rate. (B) Average revenue will be more than his marginal revenue at all the levels of output sold. (C) Marginal revenue curve will be downward sloping from left to the right. (D) Marginal revenue can be zero at some level of output sold. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q15:
21 May Shift 1
Micro > Consumer Behaviour
Medium
The income of a consumer is spent by him on two goods X and Y. The marginal utility of the goods at the present level of consumption are equal to each other. However, the price of good X is double that of good Y. The consumer, in order to attain equilibrium, will
Correct Answer
Option 2
Correct Answer
Q16:
21 May Shift 1
Micro > Production & Costs
Medium
Which of the following is/are true about the short run costs? (A) Marginal cost is the slope of total variable cost. (B) Average fixed cost curve is a downward sloping rectangular hyperbola. (C) Average variable cost curve is a U shaped curve. (D) Average variable cost curve and average cost curve are parallel to each other. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q17:
21 May Shift 1
Macro > Income & Employment
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Marginal propensity to save | (I) Slope of consumption function | | (B) Marginal propensity to consume | (II) Value is 1 at the break even point of the economy | | (C) Investment Multiplier | (III) Reciprocal of marginal propensity to save | | (D) Average propensity to consume | (IV) 1- c | Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q18:
21 May Shift 1
Macro > Balance of Payments
Medium
Suppose that government bonds in country A pay 8 per cent rate of interest whereas equally safe bonds in country B yield 10 per cent. The interest rate differential is 2 per cent. Arrange the consequences of the same in sequential order. (A) People will find investing in country B more attractive and will therefore demand less of country A's currency. (B) Depreciation of country A's currency and an appreciation of country B's currency. (C) Investors from country A will be attracted by the high interest rates in country B and will buy the currency of country B selling currency of country A. (D) The demand curve for country A's currency will shift to the left and the supply curve will shift to the right. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q19:
21 May Shift 1
Micro > Consumer Behaviour
Medium
Good X and Y are considered to be substitutes by a consumer. He is currently consuming good X. If the price of Good Y decreases, then arrange the following in correct sequence. (A) Demand for Good X decreases. (B) Consumer finds Good Y to be relatively cheaper than Good X. (C) Demand curve for Good X shifts to the left. (D) Consumer shifts from Good X to Good Y. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q20:
21 May Shift 1
Micro > Production & Costs
Medium
Which of the following is true about the law of variable proportions? (A) Total product eventually declines. (B) Average product is an inverse U shaped curve. (C) Marginal product becomes equal to Average product at its minimum. (D) Marginal product can never be negative. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q21:
21 May Shift 1
Micro > Production & Costs
Medium
If the supply curve of a good cuts the price axis in its positive range and as we extend the straight line, it cuts the quantity-axis at its negative range, the elasticity of supply for the good will be:
Correct Answer
Option 3
Correct Answer
Q22:
21 May Shift 1
Micro > Production & Costs
Easy
At the present level of production, the marginal revenue exceeds the marginal cost of production. In order to attain equilibrium, the producer should___
Correct Answer
Option 1
Correct Answer
Q23:
21 May Shift 1
Macro > National Income
Medium
What is required to be added to Net National Product at market prices to obtain National Disposable Income?
Correct Answer
Option 3
Correct Answer
Q24:
21 May Shift 1
Micro > Production & Costs
Medium
If the marginal rate of transformation is constant throughout, the production Possibilities Frontier will be
Correct Answer
Option 3
Correct Answer
Q25:
21 May Shift 1
Macro > Income & Employment
Medium
At the present level of employment in a hypothetical economy, the aggregate demand is falling short of aggregate supply. What will be the likely change in the level of national income of this economy?
Correct Answer
Option 2
Correct Answer
Q26:
21 May Shift 1
Macro > Money & Banking
Medium
If the required reserve ratio in an economy is 12.5%, the initial cash deposits of ₹2000 will increase the money supply by ______.
Correct Answer
Option 2
Correct Answer
Q27:
21 May Shift 1
Macro > Income & Employment
Medium
In an economy, the consumption curve and saving curve are parallel to each other. What will be the value of investment multiplier in this economy?
Correct Answer
Option 2
Correct Answer
Q28:
21 May Shift 1
Micro > Consumer Behaviour
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Increase in consumers' income | (I) Budget line becomes flatter | | (B) Decrease in price of good on X axis | (II) No change in the slope of budget line | | (C) Equal increase in price of both good X and good Y | (III) Parallel and rightward shift in their budget line | | (D) Decrease in Price of the good on Y axis | (IV) Budget line becomes steeper | Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q29:
21 May Shift 1
Micro > Market Equilibrium
Medium
A hurricane in some parts of the country destroyed a major part of the onion crop. Arrange the chain effects of the same on onion market in proper sequence. (A) There will be upward pressure on the price of onions. (B) The buyers will compete in order to get onions in the market. (C) Demand contracts and supply expands until the market achieves a new equilibrium. (D) The market supply of onions decreases, leading to excess demand for the same. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q30:
21 May Shift 1
Micro > Introduction
Easy
Which of the following central problems deal with the distribution of final goods and services?
Correct Answer
Option 3
Correct Answer
Q31:
21 May Shift 1
Macro > Balance of Payments
Medium
Which of the following items will be recorded in the capital account of the Balance of Payments account?
Correct Answer
Option 4
Correct Answer
Q32:
21 May Shift 1
Macro > Balance of Payments
Medium
Under the fixed exchange rate regime, if the government of a country finds its currency to be overvalued and therefore deliberately reduces the value of its current against the foreign currency, it will be called as?
Correct Answer
Option 3
Correct Answer
Q33:
21 May Shift 1
Micro > Consumer Behaviour
Medium
The equation of demand curve of a good for a consumer is given to be $p_d = e$ where e is a constant. What will be the shape of the demand curve?
Correct Answer
Option 3
Correct Answer
Q34:
21 May Shift 1
Macro > National Income
Medium
Which of the following is not an intermediate good?
Correct Answer
Option 4
Correct Answer
Q35:
21 May Shift 1
Macro > National Income
Medium
Which of the following are stock variable(s)? (A) Population (B) Capital formation (C) Number of students in a school (D) Change in inventories Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q36:
21 May Shift 1
Macro > National Income
Medium
If the National income of a country is ₹4000 million, the consumption of fixed capital is ₹200 million, Gross national product at market price is ₹5000 million and subsidies are ₹100 million, what will be the amount of Indirect taxes?
Correct Answer
Option 3
Correct Answer
Q37:
21 May Shift 1
Macro > National Income
Hard
Match List-I with List-II | List-I | List-II | |---|---| | (A) GNP at Market price | (I) $GDP_{MP}$ + NFIA | | (B) GDP at Market price | (II) NI - Undistributed profits - Net interest payments made by households - Corporate tax + Transfer payments to the households from the government and firms | | (C) Personal income | (III) C + I + G + X - M | | (D) Private income | (IV) Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world | Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q38:
21 May Shift 1
Macro > Balance of Payments
Medium
The Indian government imports 22 Rafael planes from France. In which sub-account and on which side of the Balance of Payments account this transaction will be recorded?
Correct Answer
Option 1
Correct Answer
Q39:
21 May Shift 1
Micro > Consumer Behaviour
Medium
In the cardinal utility analysis, the marginal utility of money is considered to be
Correct Answer
Option 1
Correct Answer
Q40:
21 May Shift 1
Macro > Money & Banking
Easy
Currency notes and coins are termed as ________.
Correct Answer
Option 4
Correct Answer
Q41:
21 May Shift 1
Micro > Market Equilibrium
Easy
Comprehension:
FLOOR PRICES
For certain goods and services, fall in price below a particular level is not desirable and hence the government sets floors or minimum prices for these goods and services. The government imposed lower limit on the price that may be charged for a particular good or service is called price floor. Most well-known examples of imposition of price floor are agricultural price support programmes and the minimum wage legislation. Through an agricultural price support programme, the government imposes a lower limit on the purchase price for some of the agricultural goods. Similarly, through the minimum wage legislation, the government ensures that the wage rate of the labourers does not fall below a particular level.
The market determined price of a good is Rs. 40.The government fixes the minimum price of the good as Rs. 50. Calculate the excess demand/excess supply it will cause if the demand and supply functions are Qd = 200 – p and Qs = 120 + p respectively.
Correct Answer
Option 2
Correct Answer
Q42:
21 May Shift 1
Micro > Market Equilibrium
Easy
Comprehension:
FLOOR PRICES
For certain goods and services, fall in price below a particular level is not desirable and hence the government sets floors or minimum prices for these goods and services. The government imposed lower limit on the price that may be charged for a particular good or service is called price floor. Most well-known examples of imposition of price floor are agricultural price support programmes and the minimum wage legislation. Through an agricultural price support programme, the government imposes a lower limit on the purchase price for some of the agricultural goods. Similarly, through the minimum wage legislation, the government ensures that the wage rate of the labourers does not fall below a particular level.
Floor prices are meant for the welfare of
Correct Answer
Option 2
Correct Answer
Q43:
21 May Shift 1
Micro > Market Equilibrium
Medium
Comprehension:
FLOOR PRICES
For certain goods and services, fall in price below a particular level is not desirable and hence the government sets floors or minimum prices for these goods and services. The government imposed lower limit on the price that may be charged for a particular good or service is called price floor. Most well-known examples of imposition of price floor are agricultural price support programmes and the minimum wage legislation. Through an agricultural price support programme, the government imposes a lower limit on the purchase price for some of the agricultural goods. Similarly, through the minimum wage legislation, the government ensures that the wage rate of the labourers does not fall below a particular level.
Imposition of price floors usually lead to following
Correct Answer
Option 2
Correct Answer
Q44:
21 May Shift 1
Micro > Market Equilibrium
Easy
Comprehension:
FLOOR PRICES
For certain goods and services, fall in price below a particular level is not desirable and hence the government sets floors or minimum prices for these goods and services. The government imposed lower limit on the price that may be charged for a particular good or service is called price floor. Most well-known examples of imposition of price floor are agricultural price support programmes and the minimum wage legislation. Through an agricultural price support programme, the government imposes a lower limit on the purchase price for some of the agricultural goods. Similarly, through the minimum wage legislation, the government ensures that the wage rate of the labourers does not fall below a particular level.
To be effective, the floor price should be determined
Correct Answer
Option 2
Correct Answer
Q45:
21 May Shift 1
Micro > Market Equilibrium
Easy
Comprehension:
FLOOR PRICES
For certain goods and services, fall in price below a particular level is not desirable and hence the government sets floors or minimum prices for these goods and services. The government imposed lower limit on the price that may be charged for a particular good or service is called price floor. Most well-known examples of imposition of price floor are agricultural price support programmes and the minimum wage legislation. Through an agricultural price support programme, the government imposes a lower limit on the purchase price for some of the agricultural goods. Similarly, through the minimum wage legislation, the government ensures that the wage rate of the labourers does not fall below a particular level.
The market determined wage rate is $500 per month whereas the minimum wage fixed by the government is $$450 per month. As a result of this government intervention,
Correct Answer
Option 3
Correct Answer
Q46:
21 May Shift 1
Macro > Government Budget
Medium
Comprehension:
GST: One Nation, One Tax, One Market
GST is the biggest tax reform in the country since independence and was rolled out on the mid-night of 30 June/1 July, 2017 during a special midnight session of the Parliament. The 101th Constitution Amendment Act received assent of the President of India on 8 September, 2016. The amendment introduced Article 246A in the Constitution cross empowering Parliament and Legislatures of States to make laws with reference to Goods and Service Tax imposed by the Union and the States. Thereafter CGST Act, UTGST Act and SGST Acts were enacted for GST. GST has simplified the multiplicity of taxes on goods and services. The laws, procedures and rates of taxes across the country are standardised. It has facilitated the freedom of movement of goods and services and created a common market in the country. It is aimed at reducing the cost of business operations and cascading effect of various taxes on consumers. It has also reduced the overall cost of production, which will make Indian products/services more competitive in the domestic and international markets. It will also result into higher economic growth as GDP is expected to rise by about 2%. Compliance will also be easier as all tax payment related services like registration, returns, payments are available online through a common portal www.gst.gov.in. It has expanded the tax base, introduced higher transparency in the taxation system, reduced human interface between Taxpayer and Government and is furthering ease of doing business.
However, certain products have been kept out of the ambit of GST for the time being. Alcohol for human consumption continues to be taxed under the State Excise duty framework and is not covered by GST. Similarly, five petroleum products — namely crude oil, petrol, diesel, natural gas, and aviation turbine fuel (ATF) — have been temporarily kept outside the GST regime and continue to be subject to the existing central and state tax structures until the GST Council decides to bring them under GST. Tobacco and tobacco products, on the other hand, are covered under GST at the highest slab rate of 28%, along with an additional compensation cess levied on top of it.
Suppose, a laptop has been purchased by Aman, a resident of Delhi from AX computers Pvt Ltd based in Gurugram, Haryana. Which type of GST will be levied on the laptop sold?
Correct Answer
Option 3
Correct Answer
Q47:
21 May Shift 1
Macro > Government Budget
Medium
Comprehension:
GST: One Nation, One Tax, One Market
GST is the biggest tax reform in the country since independence and was rolled out on the mid-night of 30 June/1 July, 2017 during a special midnight session of the Parliament. The 101th Constitution Amendment Act received assent of the President of India on 8 September, 2016. The amendment introduced Article 246A in the Constitution cross empowering Parliament and Legislatures of States to make laws with reference to Goods and Service Tax imposed by the Union and the States. Thereafter CGST Act, UTGST Act and SGST Acts were enacted for GST. GST has simplified the multiplicity of taxes on goods and services. The laws, procedures and rates of taxes across the country are standardised. It has facilitated the freedom of movement of goods and services and created a common market in the country. It is aimed at reducing the cost of business operations and cascading effect of various taxes on consumers. It has also reduced the overall cost of production, which will make Indian products/services more competitive in the domestic and international markets. It will also result into higher economic growth as GDP is expected to rise by about 2%. Compliance will also be easier as all tax payment related services like registration, returns, payments are available online through a common portal www.gst.gov.in. It has expanded the tax base, introduced higher transparency in the taxation system, reduced human interface between Taxpayer and Government and is furthering ease of doing business.
However, certain products have been kept out of the ambit of GST for the time being. Alcohol for human consumption continues to be taxed under the State Excise duty framework and is not covered by GST. Similarly, five petroleum products — namely crude oil, petrol, diesel, natural gas, and aviation turbine fuel (ATF) — have been temporarily kept outside the GST regime and continue to be subject to the existing central and state tax structures until the GST Council decides to bring them under GST. Tobacco and tobacco products, on the other hand, are covered under GST at the highest slab rate of 28%, along with an additional compensation cess levied on top of it.
Which of the following taxes is a tax levied by the state governments that has been subsumed under GST?
Correct Answer
Option 1
Correct Answer
Q48:
21 May Shift 1
Macro > Government Budget
Medium
Comprehension:
GST: One Nation, One Tax, One Market
GST is the biggest tax reform in the country since independence and was rolled out on the mid-night of 30 June/1 July, 2017 during a special midnight session of the Parliament. The 101th Constitution Amendment Act received assent of the President of India on 8 September, 2016. The amendment introduced Article 246A in the Constitution cross empowering Parliament and Legislatures of States to make laws with reference to Goods and Service Tax imposed by the Union and the States. Thereafter CGST Act, UTGST Act and SGST Acts were enacted for GST. GST has simplified the multiplicity of taxes on goods and services. The laws, procedures and rates of taxes across the country are standardised. It has facilitated the freedom of movement of goods and services and created a common market in the country. It is aimed at reducing the cost of business operations and cascading effect of various taxes on consumers. It has also reduced the overall cost of production, which will make Indian products/services more competitive in the domestic and international markets. It will also result into higher economic growth as GDP is expected to rise by about 2%. Compliance will also be easier as all tax payment related services like registration, returns, payments are available online through a common portal www.gst.gov.in. It has expanded the tax base, introduced higher transparency in the taxation system, reduced human interface between Taxpayer and Government and is furthering ease of doing business.
However, certain products have been kept out of the ambit of GST for the time being. Alcohol for human consumption continues to be taxed under the State Excise duty framework and is not covered by GST. Similarly, five petroleum products — namely crude oil, petrol, diesel, natural gas, and aviation turbine fuel (ATF) — have been temporarily kept outside the GST regime and continue to be subject to the existing central and state tax structures until the GST Council decides to bring them under GST. Tobacco and tobacco products, on the other hand, are covered under GST at the highest slab rate of 28%, along with an additional compensation cess levied on top of it.
Which of the following products have been kept out of the ambit of GST for the time being?
Correct Answer
Option 2
Correct Answer
Q49:
21 May Shift 1
Macro > Government Budget
Medium
Comprehension:
GST: One Nation, One Tax, One Market
GST is the biggest tax reform in the country since independence and was rolled out on the mid-night of 30 June/1 July, 2017 during a special midnight session of the Parliament. The 101th Constitution Amendment Act received assent of the President of India on 8 September, 2016. The amendment introduced Article 246A in the Constitution cross empowering Parliament and Legislatures of States to make laws with reference to Goods and Service Tax imposed by the Union and the States. Thereafter CGST Act, UTGST Act and SGST Acts were enacted for GST. GST has simplified the multiplicity of taxes on goods and services. The laws, procedures and rates of taxes across the country are standardised. It has facilitated the freedom of movement of goods and services and created a common market in the country. It is aimed at reducing the cost of business operations and cascading effect of various taxes on consumers. It has also reduced the overall cost of production, which will make Indian products/services more competitive in the domestic and international markets. It will also result into higher economic growth as GDP is expected to rise by about 2%. Compliance will also be easier as all tax payment related services like registration, returns, payments are available online through a common portal www.gst.gov.in. It has expanded the tax base, introduced higher transparency in the taxation system, reduced human interface between Taxpayer and Government and is furthering ease of doing business.
However, certain products have been kept out of the ambit of GST for the time being. Alcohol for human consumption continues to be taxed under the State Excise duty framework and is not covered by GST. Similarly, five petroleum products — namely crude oil, petrol, diesel, natural gas, and aviation turbine fuel (ATF) — have been temporarily kept outside the GST regime and continue to be subject to the existing central and state tax structures until the GST Council decides to bring them under GST. Tobacco and tobacco products, on the other hand, are covered under GST at the highest slab rate of 28%, along with an additional compensation cess levied on top of it.
Which of the following is not an advantage of GST?
Correct Answer
Option 2
Correct Answer
Q50:
21 May Shift 1
Macro > Government Budget
Medium
Comprehension:
GST: One Nation, One Tax, One Market
GST is the biggest tax reform in the country since independence and was rolled out on the mid-night of 30 June/1 July, 2017 during a special midnight session of the Parliament. The 101th Constitution Amendment Act received assent of the President of India on 8 September, 2016. The amendment introduced Article 246A in the Constitution cross empowering Parliament and Legislatures of States to make laws with reference to Goods and Service Tax imposed by the Union and the States. Thereafter CGST Act, UTGST Act and SGST Acts were enacted for GST. GST has simplified the multiplicity of taxes on goods and services. The laws, procedures and rates of taxes across the country are standardised. It has facilitated the freedom of movement of goods and services and created a common market in the country. It is aimed at reducing the cost of business operations and cascading effect of various taxes on consumers. It has also reduced the overall cost of production, which will make Indian products/services more competitive in the domestic and international markets. It will also result into higher economic growth as GDP is expected to rise by about 2%. Compliance will also be easier as all tax payment related services like registration, returns, payments are available online through a common portal www.gst.gov.in. It has expanded the tax base, introduced higher transparency in the taxation system, reduced human interface between Taxpayer and Government and is furthering ease of doing business.
However, certain products have been kept out of the ambit of GST for the time being. Alcohol for human consumption continues to be taxed under the State Excise duty framework and is not covered by GST. Similarly, five petroleum products — namely crude oil, petrol, diesel, natural gas, and aviation turbine fuel (ATF) — have been temporarily kept outside the GST regime and continue to be subject to the existing central and state tax structures until the GST Council decides to bring them under GST. Tobacco and tobacco products, on the other hand, are covered under GST at the highest slab rate of 28%, along with an additional compensation cess levied on top of it.
Identify the incorrect feature in the context of GST.
Correct Answer
Option 2
Correct Answer
CUET Economics 2025 21 May Shift 1 - Past Year Questions
Practice with our comprehensive collection of CUET Economics 2025 21 May Shift 1 Past Year Questions (PYQs) with detailed solutions. No login required. We have created handwritten solutions for all CUET Economics questions for free!