Q1:
26 May Shift 2
Macro > Money & Banking
Medium
M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources. Which of the following is not a component of M3?
Correct Answer
Option 3
Correct Answer
CUET Economics 2025 26 May Shift 2 PYQs
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Q2:
26 May Shift 2
Micro > Production & Costs
Easy
Which of the following central problems deals with the choice of technique of production?
Correct Answer
Option 2
Correct Answer
Q3:
26 May Shift 2
Macro > Money & Banking
Medium
Which of the following is/are a qualitative tool of credit control adopted by the central bank of a country? (A) Repurchase agreement. (B) Moral suasion. (C) Open market operations. (D) Margin requirements. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q4:
26 May Shift 2
Micro > Production & Costs
Medium
Which of the following are correct about the short run cost concepts? (A) Both the average cost and average variable cost curves are U-shaped. (B) Average cost and average variable cost curves are parallel to each other. (C) Marginal cost is equal to both average cost and average variable costs at their respective minimum levels. (D) Average cost and average variable cost can never be equal to each other. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q5:
26 May Shift 2
Macro > Income & Employment
Medium
Full employment, in context of determination of income, implies?
Correct Answer
Option 2
Correct Answer
Q6:
26 May Shift 2
Macro > Government Budget
Medium
Which of the following represents the borrowing requirements of the government for the purposes other than interest payments?
Correct Answer
Option 3
Correct Answer
Q7:
26 May Shift 2
Micro > Consumer Behaviour
Hard
Anand consumes lesser units of good X when its price falls but more units of X when his income rises. Which of the following statements is true about good X.
Correct Answer
Option 4
Correct Answer
Q8:
26 May Shift 2
Micro > Production & Costs
Easy
If the average fixed cost of production is the fixed cost per unit of output produced. Then it will _______.
Correct Answer
Option 3
Correct Answer
Q9:
26 May Shift 2
Macro > National Income
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Non-monetary exchanges | (I) Can be positive or negative | | (B) Externalities | (II) Price Index | | (C) Per capita income | (III) Domestic services by housewives | | (D) GDP deflator | (IV) Total income/Population | Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q10:
26 May Shift 2
Macro > Government Budget
Medium
Match list I with List II in the context of the Government Budget: | List-I | List-II | |---|---| | (A) Purchase of stocks of a private company by the general government | (I) Capital receipts | | (B) Sale of equity of a public sector enterprise to private sector | (II) Revenue receipts | | (C) Payment of interest by the government on loans from financial institutions | (III) Capital expenditure | | (D) Stamp duty received by the government on property transactions in the country | (IV) Revenue expenditure | Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q11:
26 May Shift 2
Micro > Production & Costs
Easy
A profit-maximizing firm will attain its equilibrium at that level of output where?
Correct Answer
Option 1
Correct Answer
Q12:
26 May Shift 2
Micro > Consumer Behaviour
Medium
Lata likes to eat burgers and has already eaten two. Her marginal utility from the last burger she consumes is 90 utils. If the price of burger is Rs. 25 per unit and marginal utility of a rupee is 3 utils, then?
Correct Answer
Option 1
Correct Answer
Q13:
26 May Shift 2
Micro > Introduction
Medium
Delhi has become the most polluted city in India. Due to this, how will the production possibility curve of Delhi be affected?
Correct Answer
Option 1
Correct Answer
Q14:
26 May Shift 2
Macro > National Income
Medium
Which of the following are included while calculating national income by expenditure method? (A) Expenditure on single-use producer goods purchased by firms. (B) Expenditure incurred by a private trust running an orphanage on the education of the children. (C) Expenditure incurred by the government on building dams and bridges across the nation. (D) Expenditure by foreigners on the final goods produced in the country. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q15:
26 May Shift 2
Macro > Income & Employment
Medium
Deficient demand is said to exist in the economy when-
Correct Answer
Option 4
Correct Answer
Q16:
26 May Shift 2
Macro > Income & Employment
Medium
In an imaginary economy, the planned spending falls short of planned output at a certain level of employment. Arrange the following consequences of the same in sequential order. (A) Unintended accumulation of inventories. (B) The employment level falls. (C) The output and income fall and the equilibrium is restored. (D) Producers plan to produce less in the next period. Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q17:
26 May Shift 2
Macro > Government Budget
Medium
Which of the following statements is true about public goods? (A) Public goods are non rival in nature. (B) Public goods are non-excludable in nature. (C) Public goods may be produced by the government or the private sector. (D) Public goods and public production can be used interchangeably. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q18:
26 May Shift 2
Macro > Income & Employment
Medium
The saving function of a two sector economy is given as S=(-)100+0.2Y. The equilibrium level of income of this economy is 1000, then calculate the value of consumption at equilibrium?
Correct Answer
Option 3
Correct Answer
Q19:
26 May Shift 2
Macro > National Income
Medium
What is required to be subtracted from personal income in order to obtain personal disposable income?
Correct Answer
Option 3
Correct Answer
Q20:
26 May Shift 2
Macro > Income & Employment
Medium
The ratio of increase in income to increase in investment is termed as
Correct Answer
Option 4
Correct Answer
Q21:
26 May Shift 2
Micro > Forms of Market
Medium
In a particular country, there was a severe heatwave. Arrange the following in the sequence of order in context of the market of ice-creams. (A) Rise in the price of ice cream. (B) Supply will remain the same. (C) Competition among the buyers of ice cream inceaseees. (D) The demand for ice cream increases. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q22:
26 May Shift 2
Micro > Consumer Behaviour
Medium
A consumer spends all his income of Rs 6000 on two goods - Food and clothing and is buying 12 units each of both the goods. At the present level of consumption, the marginal rate of substitution of clothing for food is 3. The price of food per unit is Rs. 400 whereas that of clothing is Rs. 100. What should a consumer do to attain the equilibrium?
Correct Answer
Option 1
Correct Answer
Q23:
26 May Shift 2
Micro > Production & Costs
Medium
A firm is operating in a market where it can sell more only by lowering the price of the good. Arrange the changes in total revenue of this firm in a sequential order. (A) Total revenue falls. (B) Total revenue starts from origin. (C) Total revenue increases at a diminishing rate. (D) Total revenue reaches its maximum. Choose the correct answer from the options given below:
Correct Answer
Option 1
Correct Answer
Q24:
26 May Shift 2
Macro > Income & Employment
Medium
The increase in income in an economy is four times more than the increase in investment. What is the value of marginal propensity to consume in this economy?
Correct Answer
Option 3
Correct Answer
Q25:
26 May Shift 2
Macro > Income & Employment
Medium
If the entire additional income is saved in an economy, the value of investment multiplier will be
Correct Answer
Option 2
Correct Answer
Q26:
26 May Shift 2
Micro > Market Equilibrium
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Increase in demand > Increase in Supply | (I) Increase in both equilibrium price and quantity. | | (B) Increase in demand < Increase in Supply | (II) Decrease in both equilibrium price and quantity. | | (C) Increase in demand = Increase in Supply | (III) Decrease in equilibrium price but increase in equilibrium quantity. | | (D) Decrease in demand < Decrease in supply | (IV) Increase in equilibrium quantity but no change in equilibrium price. | Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q27:
26 May Shift 2
Macro > Government Budget
Easy
The progressive taxation system seeks to achieve which of the following objectives of the government budget?
Correct Answer
Option 4
Correct Answer
Q28:
26 May Shift 2
Micro > Consumer Behaviour
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Marginal rate of substitution | (I) Slope of Budget line | | (B) MUₓ/MUᵧ=Pₓ/Pᵧ | (II) more of at least one good and no less of the other good | | (C) -(Pₓ/Pᵧ) | (III) Law of equi marginal utility | | (D)Monotonic Preferences. | (IV) Slope of Indifference curve | Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q29:
26 May Shift 2
Macro > Government Budget
Medium
There may be times when demand exceeds available output under conditions of high employment and thus may give rise to inflation. In such situations, restrictive conditions may be needed to reduce demand. This intervention by the government is considered as
Correct Answer
Option 3
Correct Answer
Q30:
26 May Shift 2
Macro > Money & Banking
Medium
During the period of COVID, there was an apprehension that the Indian economy might slip into recession. Therefore, to combat the situation, the Reserve bank of India reduced the Repo rate by 110 basis points. Arrange the consequences of the same in sequential order. (A) Increase in aggregate demand. (B) Reduction in the market lending rate by commercial banks. (C) Increase in money supply. (D) Increase in borrowings by the public. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q31:
26 May Shift 2
Macro > Money & Banking
Easy
The RBI can influence money supply by changing the rate at which it gives long term loans to the commercial banks. This rate is called?
Correct Answer
Option 1
Correct Answer
Q32:
26 May Shift 2
Macro > Money & Banking
Medium
Suppose an initial cash deposit of INR 100 crores has been made in a commercial bank where a total credit of INR 500 crores has been created in the economy. The required reserve ratio in this country is.............
Correct Answer
Option 3
Correct Answer
Q33:
26 May Shift 2
Macro > National Income
Medium
The value of the nominal GNP of an economy was Rs 5000 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs 6000 crores. What is the value of the GNP deflator of the year.
Correct Answer
Option 2
Correct Answer
Q34:
26 May Shift 2
Macro > Income & Employment
Medium
Arrange the following in chronological order, starting from the earliest. (A) Publishing of 'An inquiry into the Nature and Cause of the Wealth of Nations'. (B) The Great Depression. (C) Publishing of 'The Economic consequences of the Peace'. (D) Publishing of 'General Theory of Employment, Interest and Money'. Choose the correct answer from the options given below:
Correct Answer
Option 2
Correct Answer
Q35:
26 May Shift 2
Macro > National Income
Medium
There are 2496 students in a school as on 1st April 2023. During the session, there were 186 new admissions whereas 43 students withdrew from the school. At the end of the session, there were 2539 students in the school, out of whom 1800 were boys and the rest were girls. In this case, which of the following figures represent a flow variable?
Correct Answer
Option 1
Correct Answer
Q36:
26 May Shift 2
Micro > Production & Costs
Easy
According to the law of variable proportions. Which among the the following option is correct?
Correct Answer
Option 1
Correct Answer
Q37:
26 May Shift 2
Micro > Forms of Market
Medium
The total revenue of a firm is increasing at a constant rate. Which of the following is true about this firm?
Correct Answer
Option 2
Correct Answer
Q38:
26 May Shift 2
Macro > Money & Banking
Medium
Which of the following is a quantitative tool of credit control by the reserve bank of India?
Correct Answer
Option 1
Correct Answer
Q39:
26 May Shift 2
Macro > National Income
Hard
Which of the following statements is true? (A) Gross domestic income is a subset of national income. (B) Corporate profit tax is a factor in income earned by the government. (C) The production of wheat by a farmer retained by himself for his self-consumption will be included in the national income of the country. (D) All capital goods are producer goods, but all producer goods are not necessarily capital goods. Choose the correct answer from the options given below:
Correct Answer
Option 4
Correct Answer
Q40:
26 May Shift 2
Micro > Consumer Behaviour
Medium
Match List-I with List-II | List-I | List-II | |---|---| | (A) Decrease in consumer's income | (I) Budget line becomes steeper | | (B) Increase in price of Good X | (II) Parallel and leftward shift in the budget line | | (C) Equal reduction in price of both goods X and Y | (III) Budget line becomes flatter | | (D) Increase in price of Good Y | (IV) No change in the slope of the budget line | Choose the correct answer from the options given below:
Correct Answer
Option 3
Correct Answer
Q41:
26 May Shift 2
Macro > Balance of Payments
Medium
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Income and the Exchange Rate
When income of a country increases, consumer spending increases. Spending on imported goods is also likely to increase. When imports increase, the demand curve for foreign exchange shifts to the right. There is a depreciation of the domestic currency. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outward. On balance, the domestic currency may or may not depreciate. What happens will depend on whether exports are growing faster than imports. In general, other things remaining equal, a country whose aggregate demand grows faster than the rest of the world’s normally finds its currency depreciating because its imports grow faster than its exports. Its demand curve for foreign currency shifts faster than its supply curve.
If the volume of imports of a country are growing faster than its volume of exports, its gross domestic product _______.
Correct Answer
Option 1
Correct Answer
Q42:
26 May Shift 2
Macro > Balance of Payments
Medium
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Income and the Exchange Rate
When income of a country increases, consumer spending increases. Spending on imported goods is also likely to increase. When imports increase, the demand curve for foreign exchange shifts to the right. There is a depreciation of the domestic currency. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outward. On balance, the domestic currency may or may not depreciate. What happens will depend on whether exports are growing faster than imports. In general, other things remaining equal, a country whose aggregate demand grows faster than the rest of the world’s normally finds its currency depreciating because its imports grow faster than its exports. Its demand curve for foreign currency shifts faster than its supply curve.
Other things remaining same, if the income abroad increases, what is the likely effect of the same on national income of the domestic economy?
Correct Answer
Option 2
Correct Answer
Q43:
26 May Shift 2
Macro > Balance of Payments
Medium
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Income and the Exchange Rate
When income of a country increases, consumer spending increases. Spending on imported goods is also likely to increase. When imports increase, the demand curve for foreign exchange shifts to the right. There is a depreciation of the domestic currency. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outward. On balance, the domestic currency may or may not depreciate. What happens will depend on whether exports are growing faster than imports. In general, other things remaining equal, a country whose aggregate demand grows faster than the rest of the world’s normally finds its currency depreciating because its imports grow faster than its exports. Its demand curve for foreign currency shifts faster than its supply curve.
A decrease in income of a country leads to?
Correct Answer
Option 1
Correct Answer
Q44:
26 May Shift 2
Macro > Balance of Payments
Medium
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Income and the Exchange Rate
When income of a country increases, consumer spending increases. Spending on imported goods is also likely to increase. When imports increase, the demand curve for foreign exchange shifts to the right. There is a depreciation of the domestic currency. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outward. On balance, the domestic currency may or may not depreciate. What happens will depend on whether exports are growing faster than imports. In general, other things remaining equal, a country whose aggregate demand grows faster than the rest of the world’s normally finds its currency depreciating because its imports grow faster than its exports. Its demand curve for foreign currency shifts faster than its supply curve.
A country whose aggregate demand grows faster than the rest of the world's normally finds its currency______.
Correct Answer
Option 2
Correct Answer
Q45:
26 May Shift 2
Macro > Balance of Payments
Medium
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Income and the Exchange Rate
When income of a country increases, consumer spending increases. Spending on imported goods is also likely to increase. When imports increase, the demand curve for foreign exchange shifts to the right. There is a depreciation of the domestic currency. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outward. On balance, the domestic currency may or may not depreciate. What happens will depend on whether exports are growing faster than imports. In general, other things remaining equal, a country whose aggregate demand grows faster than the rest of the world’s normally finds its currency depreciating because its imports grow faster than its exports. Its demand curve for foreign currency shifts faster than its supply curve.
If the income of the country and income abroad increase simultaneously, then the domestic currency will.............
Correct Answer
Option 3
Correct Answer
Q46:
26 May Shift 2
Micro > Market Equilibrium
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Concept of Price Ceiling
It is not very uncommon to come across instances where the government fixes a maximum allowable price for certain goods. The government-imposed upper limit on the price of a good or service is called a price ceiling. A price ceiling is generally imposed on necessary items like wheat, rice, kerosene, sugar etc. The objective of the price ceiling is to restrict the price of a good so that it becomes affordable for consumers to buy. However, it does not always generate the desired results. Most of the time, intervention by the government in the form of a price ceiling leads to various socio-problems.
Imposition of price ceilings usually results into?
Correct Answer
Option 1
Correct Answer
Q47:
26 May Shift 2
Micro > Market Equilibrium
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Concept of Price Ceiling
It is not very uncommon to come across instances where the government fixes a maximum allowable price for certain goods. The government-imposed upper limit on the price of a good or service is called a price ceiling. A price ceiling is generally imposed on necessary items like wheat, rice, kerosene, sugar etc. The objective of the price ceiling is to restrict the price of a good so that it becomes affordable for consumers to buy. However, it does not always generate the desired results. Most of the time, intervention by the government in the form of a price ceiling leads to various socio-problems.
Suppose the market determined rent for apartments is \$200 per month. The government intervenes and sets the rent control at $250 per month. What is the likely impact of this intervention on market of apartments?
Correct Answer
Option 4
Correct Answer
Q48:
26 May Shift 2
Micro > Market Equilibrium
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Concept of Price Ceiling
It is not very uncommon to come across instances where the government fixes a maximum allowable price for certain goods. The government-imposed upper limit on the price of a good or service is called a price ceiling. A price ceiling is generally imposed on necessary items like wheat, rice, kerosene, sugar etc. The objective of the price ceiling is to restrict the price of a good so that it becomes affordable for consumers to buy. However, it does not always generate the desired results. Most of the time, intervention by the government in the form of a price ceiling leads to various socio-problems.
Price ceilings are also known as............
Correct Answer
Option 3
Correct Answer
Q49:
26 May Shift 2
Micro > Market Equilibrium
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Concept of Price Ceiling
It is not very uncommon to come across instances where the government fixes a maximum allowable price for certain goods. The government-imposed upper limit on the price of a good or service is called a price ceiling. A price ceiling is generally imposed on necessary items like wheat, rice, kerosene, sugar etc. The objective of the price ceiling is to restrict the price of a good so that it becomes affordable for consumers to buy. However, it does not always generate the desired results. Most of the time, intervention by the government in the form of a price ceiling leads to various socio-problems.
The market determined price of a good is Rs. 40.The government determines the price ceiling on the good as Rs. 25. 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 3
Correct Answer
Q50:
26 May Shift 2
Micro > Market Equilibrium
Easy
Comprehension:
Read the passage carefully and answer the questions based on the passage:
Concept of Price Ceiling
It is not very uncommon to come across instances where the government fixes a maximum allowable price for certain goods. The government-imposed upper limit on the price of a good or service is called a price ceiling. A price ceiling is generally imposed on necessary items like wheat, rice, kerosene, sugar etc. The objective of the price ceiling is to restrict the price of a good so that it becomes affordable for consumers to buy. However, it does not always generate the desired results. Most of the time, intervention by the government in the form of a price ceiling leads to various socio-problems.
In order to be effective, the price ceiling should be determined _______.
Correct Answer
Option 1
Correct Answer
CUET Economics 2025 26 May Shift 2 - Past Year Questions
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