Q1:
22 May Shift 2
Macro > Income & Employment
Medium
Assume that the marginal propensity to consume is 0.8. The tax multiplier will then be ............... ?
Correct Answer
Option 2
Correct Answer
CUET Economics 2025 22 May Shift 2 PYQs
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Q2:
22 May Shift 2
Micro > Consumer Behaviour
Medium
Arrange the following concept emerges in context of consumer equilibrium. (A) Transfer his expenditure from Good Y to Good X. (B) Sacrifice more of Good Y to gain Good X. (C) Till, Marginal Rate of Substitution (MRSxy) = Market Rate of Exchnage. (D) Suppose, Marginal Rate of Substitution (MRSxy) > Market Rate of Exchnage. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q3:
22 May Shift 2
Micro > Production & Costs
Easy
Suppose that the unit tax imposed by the government is Rs 50. Then, if the firm produces and sells 100 units of the good, the total tax that the firm must pay to the government is ...................
Correct Answer
Option 2
Correct Answer
Q4:
22 May Shift 2
Micro > Production & Costs
Medium
Select the correct statements from the following with regard to cost curves : (A) Short run marginal cost, average variable cost and short run average cost curves are 'U'-shaped. (B) SMC curve cuts the AVC curve from below at the minimum point of AVC. (C) SMC curve cuts the AFC curve from below at the minimum point of AFC. (D) Average fixed cost curve is downward sloping. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q5:
22 May Shift 2
Macro > Money & Banking
Easy
Match List-I with List-II | List-I | List-II | |---|---| | (A) Assets | (I) Create Credit | | (B) Liabilities | (II) Firm Owes to others | | (C) Central Bank | (III) Control Credit | | (D) Commercial Banks | (IV) Firm can Claim from others | Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q6:
22 May Shift 2
Macro > Money & Banking
Medium
The process of Buying and selling of bonds issued by the Government by the central bank is called.
Correct Answer
Option 1
Correct Answer
Q7:
22 May Shift 2
Micro > Production & Costs
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Normal profit | (I) Minimum level of profit need by firm to be in business. | | (B) Shut down point | (II) Minimum level of LRAC curve | | (C) Break-even point | (III) Profit Over and above normal profit | | (D) Super-normal profit | (IV) The point on which firm earn only normal profit. | Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q8:
22 May Shift 2
Macro > Government Budget
Easy
The difference between the government's total expenditure and its total receipts excluding borrowing.
Correct Answer
Option 1
Correct Answer
Q9:
22 May Shift 2
Macro > National Income
Easy
Identify the major sectors in the domestic economy.
Correct Answer
Option 3
Correct Answer
Q10:
22 May Shift 2
Macro > Balance of Payments
Medium
Which of the following will not lead to flow of foreign currency into the home country.
Correct Answer
Option 2
Correct Answer
Q11:
22 May Shift 2
Macro > Money & Banking
Medium
Arrange the following statements related to money multiplier process in correct sequence. (A) The bank has Rs 140 as deposits. (B) The bank has Rs 80 to lend. (C) A bank has a initial deposits of Rs 100 and needs to keep reserves as 20 per cent. (D) The bank lends 50% of lending amount to Sonia. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q12:
22 May Shift 2
Macro > Income & Employment
Medium
Aggregate demand for final goods consists which of the following? (A) Ex-ante consumption. (B) Ex-ante Investment. (C) Government spending. (D) Effective demand. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q13:
22 May Shift 2
Micro > Consumer Behaviour
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Parallel inward shift in budget line | (I) M/p₁ > M/p₁' | | (B) Parallel outward shift in budget line | (II) M/p₁ < M/p₁' | | (C) Budget line steeper | (III) M' < M | | (D) Budget line flatter | (IV) M' > M | Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q14:
22 May Shift 2
Micro > Production & Costs
Medium
When more and more workers are applied on the fixed land then the marginal productivity of additional worker will ............... to the total output.
Correct Answer
Option 4
Correct Answer
Q15:
22 May Shift 2
Macro > Balance of Payments
Medium
Identify the exchange rate system in which central bank of a country intervene 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 2
Correct Answer
Q16:
22 May Shift 2
Macro > National Income
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) GDP_MP | (I) NNP_FC + NIT | | (B) GDP_FC | (II) NNP_MP - NIT | | (C) NNP_MP | (III) GDP_FC + NIT | | (D) NNP_FC | (IV) GDP_MP - NIT | Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q17:
22 May Shift 2
Micro > Production & Costs
Medium
From the following statements about a firm's supply curve, select the correct statements: (A) Technological progress is expected to shift the supply curve of a firm to the right. (B) An increase in input prices is expected to shift the supply curve of a firm to the left. (C) A decrease in input prices is expected to shift the supply curve of a firm to the left. (D) The imposition of a unit tax shifts the supply curve of a firm to the left. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q18:
22 May Shift 2
Micro > Production & Costs
Easy
Which function tells us the relation between inputs and output?
Correct Answer
Option 2
Correct Answer
Q19:
22 May Shift 2
Macro > Balance of Payments
Medium
Arrange the following statements related to foreign exchange market (fixed exchange rate) in correct sequence. (A) RBI intervenes to purchase the dollars for rupees in the foreign exchange market in order to absorb this excess supply. (B) The government will fix a higher exchange rate by making the rupee cheaper for foreigners. (C) Supply of dollars exceeds the demand for dollars. (D) The Indian government wants to encourage exports. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q20:
22 May Shift 2
Macro > Balance of Payments
Medium
When the income of domestic consumers increases, their spending will Increase and thus spending on imported goods is also likely to increase. This leads to ............... of domestic currency?
Correct Answer
Option 3
Correct Answer
Q21:
22 May Shift 2
Micro > Introduction
Easy
suppose an individual with same working condition got three alternative job in his hand he has selected the best and need to forgone the next best alternative. Identify the indicated cost in the aforesaid statement.
Correct Answer
Option 4
Correct Answer
Q22:
22 May Shift 2
Micro > Production & Costs
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) TVC | (I) AVC × quantity | | (B) SAC | (II) AVC + AFC | | (C) TC | (III) TVC + TFC | | (D) LRMC | (IV) (TC at q₁ units) – (TC at q₁ – ₁ units) | Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q23:
22 May Shift 2
Macro > Money & Banking
Easy
Currency notes and coins cannot be refused by any citizen of the country for settlement of any kind of transaction due to which they are called __ __
Correct Answer
Option 2
Correct Answer
Q24:
22 May Shift 2
Macro > National Income
Medium
Arrange the following in correct sequence for calculating National Income. (A) Add Net Factor income from abaord. (B) Deduct value of Intermediate Goods. (C) Calculate the value of output. (D) Deduct Depreciation and NIT. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q25:
22 May Shift 2
Macro > Government Budget
Medium
Among the following, which features are correct with regard to Revenue receipts. (A) Receipts that are redeemable. (B) Recurring receipts that do not lead to a claim on the government. (C) Receipts from different taxes. (D) Receipts that take into account the effects of tax proposals made in the finance bill. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q26:
22 May Shift 2
Macro > National Income
Medium
Identify the net contribution made by a firm from the following : Domestic sales + Export + Change in stock - value of intermediate consumption.
Correct Answer
Option 2
Correct Answer
Q27:
22 May Shift 2
Micro > Production & Costs
Medium
Marginal product (MP) and the average product (AP) curves are inverse 'U'-shaped. which of the following is correct for AP and MP.
Correct Answer
Option 4
Correct Answer
Q28:
22 May Shift 2
Macro > Government Budget
Easy
Fiscal Responsibility and Budget Management Act (FRBMA) was framed in which year.
Correct Answer
Option 3
Correct Answer
Q29:
22 May Shift 2
Macro > National Income
Easy
Let us say a firm produces Rs 100 worth of goods per year, Rs 20 is the value of intermediate goods used by it during the year and Rs 10 is the value of capital consumption. Calculate the Gross value added.
Correct Answer
Option 4
Correct Answer
Q30:
22 May Shift 2
Macro > National Income
Easy
Which of the following indicate that the goods and services are evaluated at some constant set of prices ?
Correct Answer
Option 2
Correct Answer
Q31:
22 May Shift 2
Macro > Money & Banking
Medium
Given a cash reserve ratio of 20 percent, reserves of Rs 100 create deposits of ___________?
Correct Answer
Option 3
Correct Answer
Q32:
22 May Shift 2
Macro > Balance of Payments
Easy
The balance of payments records the transactions in goods, services and assets between residents of a country with the rest of the world for a specified time period. Identify the main accounts in the balance of payments.
Correct Answer
Option 4
Correct Answer
Q33:
22 May Shift 2
Macro > Introduction
Medium
Select the correct statements regarding macroeconomics. (A) Macroeconomics deals with the aggregate economic variables of an economy. (B) Macroeconomics emerged as a separate subject in the 1930s due to Keynes. (C) Macroeconomics is a combination of households, firms, and the government sector only in open economy. (D) Macroeconomics takes into account various inter - linkages which may exist between the different sectors of an economy. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q34:
22 May Shift 2
Macro > National Income
Medium
Nation Income – Undistributed profits – Net interest payments made by households – Corporate tax + Transfer payments to the households from the government and firms, is ______
Correct Answer
Option 2
Correct Answer
Q35:
22 May Shift 2
Micro > Forms of Market
Easy
The government-imposed lower limit on the price that may be charged for a particular good or service. What this lower limit is called ?
Correct Answer
Option 2
Correct Answer
Q36:
22 May Shift 2
Macro > Income & Employment
Medium
"General Theory of Employment, Interest and Money" by John Maynard Keynes was written in?
Correct Answer
Option 2
Correct Answer
Q37:
22 May Shift 2
Micro > Production & Costs
Medium
Given the production function $f(tx_1, tx_2) > tf (x_1, x_2)$, what it exhibit:
Correct Answer
Option 1
Correct Answer
Q38:
22 May Shift 2
Micro > Market Equilibrium
Medium
Arrange the following in correct sequence, to correct the problem of mismatch between supply and demand forces: (A) There is excess demand in the market. (B) All other things remain the same as price rises, quantity demanded falls and quantity supplied increases. (C) Some consumers who are either unable to obtain the commodity at all or obtain it in insufficient quantity will be willing to pay more than the prevailing prices. (D) The market moves towards the point where the quantity that the firms want to sell is equal to the quantity that the consumers want to buy. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q39:
22 May Shift 2
Micro > Production & Costs
Easy
The total cost of a firm is Rs 80 for 3 units of output, Rs 95 for 4 units of output, and Rs. 115 for 5 units of output. What is the marginal cost for the 5th unit of output?
Correct Answer
Option 1
Correct Answer
Q40:
22 May Shift 2
Macro > Government Budget
Medium
Identify the tax imposed by the government that do not depend on income.
Correct Answer
Option 2
Correct Answer
Q41:
22 May Shift 2
Micro > Consumer Behaviour
Medium
Equality of the Marginal Rate of Substitution and the Ratio of the Prices
The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve (MRS) and that of the budget line (price ratio) are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the MRS at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.
The optimum bundle of the consumer is located at the point where:
Correct Answer
Option 3
Correct Answer
Q42:
22 May Shift 2
Micro > Consumer Behaviour
Medium
Equality of the Marginal Rate of Substitution and the Ratio of the Prices
The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve (MRS) and that of the budget line (price ratio) are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the MRS at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.
The rate at which the consumer is able to substitute one good for the other in the market is indicated by
Correct Answer
Option 2
Correct Answer
Q43:
22 May Shift 2
Micro > Consumer Behaviour
Medium
Equality of the Marginal Rate of Substitution and the Ratio of the Prices
The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve (MRS) and that of the budget line (price ratio) are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the MRS at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.
Which of the following indicates the slope of Budget Line?
Correct Answer
Option 1
Correct Answer
Q44:
22 May Shift 2
Micro > Consumer Behaviour
Medium
Equality of the Marginal Rate of Substitution and the Ratio of the Prices
The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve (MRS) and that of the budget line (price ratio) are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the MRS at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.
Which goods are represented by a straight line Indifference Curve?
Correct Answer
Option 2
Correct Answer
Q45:
22 May Shift 2
Micro > Consumer Behaviour
Medium
Equality of the Marginal Rate of Substitution and the Ratio of the Prices
The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve (MRS) and that of the budget line (price ratio) are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the MRS at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.
The rate at which the consumer is willing to substitute one good for the other is indicated by:
Correct Answer
Option 2
Correct Answer
Q46:
22 May Shift 2
Macro > National Income
Easy
Comprehension:
Macroeconomics: Economy as a whole
The founding father of modern economics, had suggested that if the buyers and sellers in each market take their decisions following only their own self-interest, economists will not need to think of the wealth and welfare of the country as a whole separately. For various purposes macroeconomists had to study the effects in the markets of taxation and other budgetary policies, and policies for bringing about changes in money supply, the rate of interest, wages, employment, and output. Macroeconomics has, therefore, deep roots in microeconomics because it has to study the aggregate effects of the forces of demand and supply in the markets.
In a simplified economy, the households may dispose off their earnings by spending their entire income on the goods and services produced by the domestic firms as other channels if disposing their income are closed. The factors of production use their remunerations to buy the goods and services which they assisted in producing. The aggregate consumption by the households of the economy is equal to the aggregate expenditure on goods and services produced by the firms in the economy.
There is no leakage from the system then, in which form the entire income of the economy comes back to the producers?
Correct Answer
Option 1
Correct Answer
Q47:
22 May Shift 2
Macro > National Income
Easy
Comprehension:
Macroeconomics: Economy as a whole
The founding father of modern economics, had suggested that if the buyers and sellers in each market take their decisions following only their own self-interest, economists will not need to think of the wealth and welfare of the country as a whole separately. For various purposes macroeconomists had to study the effects in the markets of taxation and other budgetary policies, and policies for bringing about changes in money supply, the rate of interest, wages, employment, and output. Macroeconomics has, therefore, deep roots in microeconomics because it has to study the aggregate effects of the forces of demand and supply in the markets.
In a simplified economy, the households may dispose off their earnings by spending their entire income on the goods and services produced by the domestic firms as other channels if disposing their income are closed. The factors of production use their remunerations to buy the goods and services which they assisted in producing. The aggregate consumption by the households of the economy is equal to the aggregate expenditure on goods and services produced by the firms in the economy.
In which of the following method the flow is measured as the sum total of all factor payments?
Correct Answer
Option 3
Correct Answer
Q48:
22 May Shift 2
Macro > National Income
Easy
Comprehension:
Macroeconomics: Economy as a whole
The founding father of modern economics, had suggested that if the buyers and sellers in each market take their decisions following only their own self-interest, economists will not need to think of the wealth and welfare of the country as a whole separately. For various purposes macroeconomists had to study the effects in the markets of taxation and other budgetary policies, and policies for bringing about changes in money supply, the rate of interest, wages, employment, and output. Macroeconomics has, therefore, deep roots in microeconomics because it has to study the aggregate effects of the forces of demand and supply in the markets.
In a simplified economy, the households may dispose off their earnings by spending their entire income on the goods and services produced by the domestic firms as other channels if disposing their income are closed. The factors of production use their remunerations to buy the goods and services which they assisted in producing. The aggregate consumption by the households of the economy is equal to the aggregate expenditure on goods and services produced by the firms in the economy.
Which of the following study the aggregate effects of the forces of demand and supply in the markets?
Correct Answer
Option 4
Correct Answer
Q49:
22 May Shift 2
Macro > National Income
Easy
Comprehension:
Macroeconomics: Economy as a whole
The founding father of modern economics, had suggested that if the buyers and sellers in each market take their decisions following only their own self-interest, economists will not need to think of the wealth and welfare of the country as a whole separately. For various purposes macroeconomists had to study the effects in the markets of taxation and other budgetary policies, and policies for bringing about changes in money supply, the rate of interest, wages, employment, and output. Macroeconomics has, therefore, deep roots in microeconomics because it has to study the aggregate effects of the forces of demand and supply in the markets.
In a simplified economy, the households may dispose off their earnings by spending their entire income on the goods and services produced by the domestic firms as other channels if disposing their income are closed. The factors of production use their remunerations to buy the goods and services which they assisted in producing. The aggregate consumption by the households of the economy is equal to the aggregate expenditure on goods and services produced by the firms in the economy.
Who among the following is called as the founding father of modern economics.
Correct Answer
Option 3
Correct Answer
Q50:
22 May Shift 2
Macro > National Income
Easy
Comprehension:
Macroeconomics: Economy as a whole
The founding father of modern economics, had suggested that if the buyers and sellers in each market take their decisions following only their own self-interest, economists will not need to think of the wealth and welfare of the country as a whole separately. For various purposes macroeconomists had to study the effects in the markets of taxation and other budgetary policies, and policies for bringing about changes in money supply, the rate of interest, wages, employment, and output. Macroeconomics has, therefore, deep roots in microeconomics because it has to study the aggregate effects of the forces of demand and supply in the markets.
In a simplified economy, the households may dispose off their earnings by spending their entire income on the goods and services produced by the domestic firms as other channels if disposing their income are closed. The factors of production use their remunerations to buy the goods and services which they assisted in producing. The aggregate consumption by the households of the economy is equal to the aggregate expenditure on goods and services produced by the firms in the economy.
The decision of an individual economic agent is the study of ...................... ?
Correct Answer
Option 3
Correct Answer
CUET Economics 2025 22 May Shift 2 - Past Year Questions
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