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CUET Economics 2026 PYQs11 May Shift 1. Free, no login required.

Macro

past year questions, CUET Economics 2026 11 May Shift 1

Income & Employment

past year questions, Macro, CUET Economics 2026 11 May Shift 1

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:

Solution

✅ Correct Option: 4

A firm's investment decision depends on the cost of capital (the interest cost of funds), expected returns from the investment, availability of capital to finance it, and the stock of inventories it plans to hold, since inventory accumulation is itself a part of investment. Hence A, B, C and D.

Note: Standard texts stress cost of capital and expected returns; the other two are broader determinants, so we selected all four and flagged this for review.

Related questions:

2026: 11 May Shift 2

Match the LIST-I with LIST-II

LIST-ILIST-II
A. Excess DemandI. Factors of production; willing to work but not able to get the work.
B. Voluntary unemploymentII. It leads to a decline in prices in the long run.
C. Deficient DemandIII. It leads to a rise in prices in the long run.
D. Under employmentIV. Factors of production are able but not willing to work.

Choose the correct answer from the options given below:

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2023: 28 May Shift 2

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2026: 21 May Shift 1

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