Q1:

Income & Employment

Easy

What is the value of the vertical intercept and slope of the given equation for the consumption function?

C=A+12YC = A + \frac{1}{2}Y

Answer options
Option 1
Correct Answer
Explanation for 2026: 11 May Shift 1 ECO question 1

Q2:

Forms of Market

Medium

Which of the following condition must be satisfied for profit maximization under perfect competition for the Short Run (SR) and for the Long Run (LR) respectively?

Where P = Price, AVC = Average variable cost, AFC = Average fixed cost, AC = Average cost.

Answer options
Option 4
Correct Answer
Explanation for 2026: 11 May Shift 1 ECO question 2

Q3:

Income & Employment

Easy

If all people in the economy increase the proportion of income they save, then total savings in the economy will not increase; it will either decline or remain unchanged. This phenomenon is known as_____.

Answer options
Option 2
Correct Answer
Explanation for 2026: 11 May Shift 1 ECO question 3

Q4:

Human Capital Formation

Easy

Match the LIST-I with LIST-II

LIST-ILIST-II
A.ICMRI. Agricultural research
B.AICTEII. Health Sector
C.NABARDIII. Technical education
D.ICARIV. Agricultural credit

Choose the correct answer from the options given below:

Answer options
Option 1
Correct Answer
Explanation for 2026: 11 May Shift 1 ECO question 4

Q5:

Consumer Behaviour

Medium

Suppose the consumer have 15 rupees to spend on purchasing two goods namely x1x_1 and x2x_2 where the price of x1x_1 is 2.50 and price of x2x_2 is 1.50 then what is the maximum quantity of x1x_1 and x2x_2 at which the consumer's budget line will intersect the axis of the graph if x1x_1 and x2x_2 are represented in the vertical axis and horizontal axis of the graph respectively.

Answer options
Option 3
Correct Answer
Explanation for 2026: 11 May Shift 1 ECO question 5

Q6:

National Income

Easy

Match the LIST-I with LIST-II

LIST-ILIST-II
A.GDP - DepreciationI. GDP in two-sector economy
B.Indirect Taxes - SubsidiesII. Disposable income
C.Y = C + IIII. NDP
D.Personal Income - TaxesIV. Net indirect Taxes

Choose the correct answer from the options given below:

Answer options
Option 4
Correct Answer
Explanation for 2026: 11 May Shift 1 ECO question 6

Q7:

Production & Costs

Easy

The given the Cobb-Douglas production function

Q=L2/3K1/3Q = L^{2/3}K^{1/3}, which of the following is correct about this production function?

A. The firm produces Q amount of output using L and K inputs only.

B. The given production function exhibits decreasing returns to scale.

C. The given production function exhibits constant returns to scale.

D. The given production function exhibits increasing returns to scale.

Choose the correct answer from the options given below:

Answer options
Option 3
Correct Answer
Explanation for 2026: 11 May Shift 1 ECO question 7

Q8:

Introduction

Easy

What causes the production possibility frontier concave downward shape towards the origin?

Answer options
Option 2
Correct Answer
Explanation for 2026: 11 May Shift 1 ECO question 8

Q9:

Balance of Payments

Easy

Which of the following is not a component of current account in balance of payment?

Answer options
Option 4
Correct Answer
Explanation for 2026: 11 May Shift 1 ECO question 9

Q10:

Development Experience of India

Easy

Match the LIST-I with LIST-II

LIST-ILIST-II
A.SEZI. Population
B.DemographyII. Exports and imports
C.Fertility RateIII. Average year of living
D.Life ExpectancyIV. Birth rate

Choose the correct answer from the options given below:

Answer options

Q11:

Money & Banking

Easy

Which is the apex regulatory body of the Indian banking system and in which year it came into existence?

Answer options

Q12:

Balance of Payments

Medium

Why official reserve transactions are not equal to zero under managed floating exchange rate system?

Answer options

Q13:

Production & Costs

Easy

Which of the following cost curve represents the rate of change in the total cost of production in the production function?

Answer options

Q15:

Forms of Market

Easy

Which of the following condition is satisfied for a firm to maximise it's profit in the short run under perfect competition?

Where, P = Price, AC = Average cost, MC = Marginal Cost.

Answer options

Q16:

Money & Banking

Easy

What are the short and long term tools of lending to commercial banks by the RBI?

Answer options

Q17:

Development Experience of India

Easy

Which one of the following is the correct composition of HDI?

Answer options

Q18:

Income & Employment

Easy

If the investment is increased by 2 lacs and the value of the investment multiplier is 3/2 then what will be the value of change in income?

Answer options

Q19:

National Income

Medium

Which of the following is correct option to calculate National Income:

Answer options

Q20:

Government Budget

Medium

Arrange the following statements in correct sequence with respect to government budget's objective.

A. When demand exceeds for available output under the condition of full employment.

B. May give rise to inflation in the economy.

C. The intervention of the government to stabilize the economy.

D. The overall level of employment and prices depend upon the level of aggregate demand.

Choose the correct answer from the options given below:

Answer options

Q21:

Income & Employment

Easy

Which one of the following is correct formula for deriving the investment multiplier?

A. 1/(1 - MPC)

B. 1/MPS

C. 1/(1 - MPS)

D. (1 - MPC)/MPS

Choose the correct answer from the options given below:

Answer options

Q22:

Market Equilibrium

Easy

Excess demand and excess supply can be adjusted by the invisible hand to reach the ________________ .

Answer options

Q23:

Income & Employment

Medium

Find the correct options from the following on which investment decisions of a firm depends.

A. Cost of capital

B. Availability of stocks of inventories

C. Expected returns from the investment

D. Availability of capital

Choose the correct answer from the options given below:

Answer options

Q24:

Consumer Behaviour

Easy

Suppose the price of the commodity is declined by 10%, as a result of which, the quantity demanded increased by 20%. Then, calculate the value of the elasticity of demand (eDe_D) and confirm its type.

Answer options

Q25:

Human Capital Formation

Easy

Match the LIST-I with LIST-II

LIST-ILIST-II
A.HDII. Malnutrition
B.BPLII. Poverty
C.Infant mortalityIII. Quality of life
D.UndernourishmentIV. Child death before reaching the age of one year

Choose the correct answer from the options given below:

Answer options

Q26:

Balance of Payments

Easy

Under which exchange rate appreciation and depreciation takes place and under which exchange rate devaluation and revaluation takes place respectively?

Answer options

Q27:

Income & Employment

Easy

Calculate the value of the multiplier and find the value of the consumption quantity that is independent of income from the following equation.

C=150+0.75Y

Answer options

Q28:

Development Experience (1947-90)

Medium

Arrange the following information on the basis of year of occurrence in India in respect of planning (oldest to latest):

A. Emphasized on mixed economy

B. Emphasized on expansion of Public Sector Undertakings (PSU's)

C. Implementation of the third five-year plan

D. Emphasized economic liberalization

Choose the correct answer from the options given below:

Answer options

Q29:

Money & Banking

Easy

If the total amount of deposits with a bank is 200 crores and the Reserve Ratio (RR) is 5% then what is the maximum loanable amount which the bank can lend out in the form of a loan?

Answer options

Q30:

Development Experience (1947-90)

Easy

Match the LIST-I with LIST-II

LIST-ILIST-II
A.Source of Human CapitalI. Abolition of the zamindari system
B.Minimum Support PriceII. Balancing resources use between present and future generation
C.Land ReformIII. Long term assurance to farmers
D.Sustainable DevelopmentIV. Investment in education

Choose the correct answer from the options given below:

Answer options

Q31:

Production & Costs

Easy

What happens to the total cost (TC) of production if the quantity of output in the production is reduced to 0 (zero)?

Where, TC=Total cost, FC=Fixed Cost, VC=Variable Cost.

Answer options

Q32:

Money & Banking

Medium

What are the broad components of money supply measure M3?

A. Currency in circulation

B. Net fixed deposits with the banking system

C. Post office savings deposit

D. Demand Deposits

Choose the correct answer from the options given below:

Answer options

Q33:

Economic Reforms (1991)

Medium

Which of the following combinations about liberalization are correct?

A. Deregulation of industrial Sector.

B. Rupee was revalued against foreign currencies.

C. Foreign Institutional investors are allowed to invest in Indian financial markets.

D. Removal of export duties.

Choose the correct answer from the options given below:

Answer options

Q34:

Government Budget

Medium

Which are the part of plan revenue expenditure ?

A. Expenditure on five-year plans

B. Central assistance for union territories

C. Expenditure on Defence services

D. Expenditure on subsidies and interest payment

Choose the correct answer from the options given below:

Answer options

Q35:

Market Equilibrium

Easy

When excess demand for a commodity is reduced to zero, what happens to the market price for that commodity?

Answer options

Q36:

Balance of Payments

Easy

Calculate the current account balance from the following values (given in dollars):

Exports of goods =188

Import of goods =248

Net invisibles;

A. Non-factor services=56

B. Transfers=36

C. Income receipts =10

Answer options

Q37:

Government Budget

Medium

Arrange the following steps in proper sequence with respect to the change in taxes:

A. Decrease in taxes.

B. Shift the aggregate expenditure curve upwards.

C. Increase in disposable income.

D. Negative tax multiplier effect.

Choose the correct answer from the options given below:

Answer options

Q38:

Development Experience (1947-90)

Medium

Arrange the following events in chronological order.

A. Setting up Planning Commission

B. Green Revolution

C. Karve Committee

D. Second Five Year Plan

Choose the correct answer from the options given below:

Answer options

Q39:

Sustainable Economic Development

Easy

What do you mean by sustainable development?

Answer options

Q40:

Economic Reforms (1991)

Easy

What does NEP stand for, with reference to the 1991 economic reforms in India?

Answer options

Q41:

Sustainable Economic Development

Easy

Sustainable Development

Global warming is a gradual increase in the average temperature of the earth's lower atmosphere as a result of the increase in greenhouse gases.It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation. The atmospheric concentrations of carbon dioxide and CH4 have increased by 31 per cent and 149 per cent respectively above pre-industrial levels since 1750. During the past century, the atmospheric temperature has risen by 1.1°F (0.6°C) . Among factors that may be contributing to global warming are the burning of coal and petroleum products (sources of carbon dioxide, methane, nitrous oxide, ozone); deforestation, which increases the amount of carbon dioxide in the atmosphere; methane gas released in animal waste; and increased cattle production, which contributes to deforestation, methane production, and use of fossil fuels. A UN Conference on Climate Change, held in Kyoto, Japan, in 1997 which emphasized that industrialized nations must reduce greenhouse gas emissions.

Ozone depletion refers to the phenomenon of reductions in the amount of ozone in the stratosphere. The problem of ozone depletion is caused by high levels of chlorine and bromine compounds in the stratosphere. The origins of these compounds are chlorofluorocarbons (CFC), used as cooling substances in airconditioners and refrigerators, or as aerosol propellants, and bromofluorocarbons (halons), used in fire extinguishers. This led to the adoption of the Montreal Protocol banning the use of chlorofluorocarbon (CFC) compounds, as well as other ozone depleting chemicals such as carbon tetrachloride, trichloroethane (also known as methyl chloroform), and bromine compounds known as halons.

Which of the following apex international body held a meeting in Kyoto, Japan in 1997 to fight against global warming?

Answer options

Q42:

Sustainable Economic Development

Easy

Sustainable Development

Global warming is a gradual increase in the average temperature of the earth's lower atmosphere as a result of the increase in greenhouse gases.It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation. The atmospheric concentrations of carbon dioxide and CH4 have increased by 31 per cent and 149 per cent respectively above pre-industrial levels since 1750. During the past century, the atmospheric temperature has risen by 1.1°F (0.6°C) . Among factors that may be contributing to global warming are the burning of coal and petroleum products (sources of carbon dioxide, methane, nitrous oxide, ozone); deforestation, which increases the amount of carbon dioxide in the atmosphere; methane gas released in animal waste; and increased cattle production, which contributes to deforestation, methane production, and use of fossil fuels. A UN Conference on Climate Change, held in Kyoto, Japan, in 1997 which emphasized that industrialized nations must reduce greenhouse gas emissions.

Ozone depletion refers to the phenomenon of reductions in the amount of ozone in the stratosphere. The problem of ozone depletion is caused by high levels of chlorine and bromine compounds in the stratosphere. The origins of these compounds are chlorofluorocarbons (CFC), used as cooling substances in airconditioners and refrigerators, or as aerosol propellants, and bromofluorocarbons (halons), used in fire extinguishers. This led to the adoption of the Montreal Protocol banning the use of chlorofluorocarbon (CFC) compounds, as well as other ozone depleting chemicals such as carbon tetrachloride, trichloroethane (also known as methyl chloroform), and bromine compounds known as halons.

As per UN conference on climate change held in Kyoto,Japan in 1997 which type of nations must abide by the agreement to reduce the green house gases emissions.

Answer options

Q43:

Sustainable Economic Development

Medium

Sustainable Development

Global warming is a gradual increase in the average temperature of the earth's lower atmosphere as a result of the increase in greenhouse gases.It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation. The atmospheric concentrations of carbon dioxide and CH4 have increased by 31 per cent and 149 per cent respectively above pre-industrial levels since 1750. During the past century, the atmospheric temperature has risen by 1.1°F (0.6°C) . Among factors that may be contributing to global warming are the burning of coal and petroleum products (sources of carbon dioxide, methane, nitrous oxide, ozone); deforestation, which increases the amount of carbon dioxide in the atmosphere; methane gas released in animal waste; and increased cattle production, which contributes to deforestation, methane production, and use of fossil fuels. A UN Conference on Climate Change, held in Kyoto, Japan, in 1997 which emphasized that industrialized nations must reduce greenhouse gas emissions.

Ozone depletion refers to the phenomenon of reductions in the amount of ozone in the stratosphere. The problem of ozone depletion is caused by high levels of chlorine and bromine compounds in the stratosphere. The origins of these compounds are chlorofluorocarbons (CFC), used as cooling substances in airconditioners and refrigerators, or as aerosol propellants, and bromofluorocarbons (halons), used in fire extinguishers. This led to the adoption of the Montreal Protocol banning the use of chlorofluorocarbon (CFC) compounds, as well as other ozone depleting chemicals such as carbon tetrachloride, trichloroethane (also known as methyl chloroform), and bromine compounds known as halons.

Which of the following compounds was not banned as per Montreal Protocol?

Answer options

Q44:

Sustainable Economic Development

Easy

Sustainable Development

Global warming is a gradual increase in the average temperature of the earth's lower atmosphere as a result of the increase in greenhouse gases.It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation. The atmospheric concentrations of carbon dioxide and CH4 have increased by 31 per cent and 149 per cent respectively above pre-industrial levels since 1750. During the past century, the atmospheric temperature has risen by 1.1°F (0.6°C) . Among factors that may be contributing to global warming are the burning of coal and petroleum products (sources of carbon dioxide, methane, nitrous oxide, ozone); deforestation, which increases the amount of carbon dioxide in the atmosphere; methane gas released in animal waste; and increased cattle production, which contributes to deforestation, methane production, and use of fossil fuels. A UN Conference on Climate Change, held in Kyoto, Japan, in 1997 which emphasized that industrialized nations must reduce greenhouse gas emissions.

Ozone depletion refers to the phenomenon of reductions in the amount of ozone in the stratosphere. The problem of ozone depletion is caused by high levels of chlorine and bromine compounds in the stratosphere. The origins of these compounds are chlorofluorocarbons (CFC), used as cooling substances in airconditioners and refrigerators, or as aerosol propellants, and bromofluorocarbons (halons), used in fire extinguishers. This led to the adoption of the Montreal Protocol banning the use of chlorofluorocarbon (CFC) compounds, as well as other ozone depleting chemicals such as carbon tetrachloride, trichloroethane (also known as methyl chloroform), and bromine compounds known as halons.

Which one of the following factor is not responsible for global warming?

Answer options

Q45:

Sustainable Economic Development

Easy

Sustainable Development

Global warming is a gradual increase in the average temperature of the earth's lower atmosphere as a result of the increase in greenhouse gases.It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation. The atmospheric concentrations of carbon dioxide and CH4 have increased by 31 per cent and 149 per cent respectively above pre-industrial levels since 1750. During the past century, the atmospheric temperature has risen by 1.1°F (0.6°C) . Among factors that may be contributing to global warming are the burning of coal and petroleum products (sources of carbon dioxide, methane, nitrous oxide, ozone); deforestation, which increases the amount of carbon dioxide in the atmosphere; methane gas released in animal waste; and increased cattle production, which contributes to deforestation, methane production, and use of fossil fuels. A UN Conference on Climate Change, held in Kyoto, Japan, in 1997 which emphasized that industrialized nations must reduce greenhouse gas emissions.

Ozone depletion refers to the phenomenon of reductions in the amount of ozone in the stratosphere. The problem of ozone depletion is caused by high levels of chlorine and bromine compounds in the stratosphere. The origins of these compounds are chlorofluorocarbons (CFC), used as cooling substances in airconditioners and refrigerators, or as aerosol propellants, and bromofluorocarbons (halons), used in fire extinguishers. This led to the adoption of the Montreal Protocol banning the use of chlorofluorocarbon (CFC) compounds, as well as other ozone depleting chemicals such as carbon tetrachloride, trichloroethane (also known as methyl chloroform), and bromine compounds known as halons.

Which compounds are mainly responsible for Ozone depletion in the stratosphere?

Answer options

Q46:

National Income

Easy

Sl NoItemsValues (In Lacs)
1Government Spending7.5
2Consumption spending2.85
3Investment spending5.75
4Value of Exports1.8
5Value of Imports2.12
6Personal income1.2
7Disposable income1.0
8Depreciation0.2

Calculate the value of GDPMPGDP_{MP} of a closed economy from the given table values.

Answer options

Q47:

National Income

Easy

Sl NoItemsValues (In Lacs)
1Government Spending7.5
2Consumption spending2.85
3Investment spending5.75
4Value of Exports1.8
5Value of Imports2.12
6Personal income1.2
7Disposable income1.0
8Depreciation0.2

Calculate the value of GDPMPGDP_{MP} of an open economy from the given table values

Answer options

Q48:

National Income

Easy

Sl NoItemsValues (In Lacs)
1Government Spending7.5
2Consumption spending2.85
3Investment spending5.75
4Value of Exports1.8
5Value of Imports2.12
6Personal income1.2
7Disposable income1.0
8Depreciation0.2

Calculate the value of net exports

Answer options

Q49:

National Income

Easy

Sl NoItemsValues (In Lacs)
1Government Spending7.5
2Consumption spending2.85
3Investment spending5.75
4Value of Exports1.8
5Value of Imports2.12
6Personal income1.2
7Disposable income1.0
8Depreciation0.2

Calculate the NDP at market price of the closed economy from the given table values.

Answer options

Q50:

National Income

Easy

Sl NoItemsValues (In Lacs)
1Government Spending7.5
2Consumption spending2.85
3Investment spending5.75
4Value of Exports1.8
5Value of Imports2.12
6Personal income1.2
7Disposable income1.0
8Depreciation0.2

Calculate the amount of personal tax.

Answer options

CUET Economics 2026 11 May Shift 1 Past Year Question Paper

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