Q1:

Income & Employment

Easy

When the consumption is changed as per the change in income level such consumption is known as:

Answer options
Option 1
Correct Answer
Explanation for 2026: 6 June Shift 1 ECO question 1

Q2:

Consumer Behaviour

Easy

Match List-I with List-II

List-IList-II
(A) Demand function(I) Change in total utility due to consumption of one additional unit of a commodity.
(B) Indifference curves(II) The relation between the consumer's optimal choice of the quantity of a good and its price.
(C) Marginal utility(III) The level of utility that can be expressed in numbers.
(D) Cardinal utility(IV) Never intersect each other.

Choose the correct answer from the options given below:

Answer options
Option 3
Correct Answer
Explanation for 2026: 6 June Shift 1 ECO question 2

Q3:

National Income

Easy

Which of the following are economic activities?

(A) Mining and Quarrying

(B) Construction

(C) Sun Rays

(D) Transport and Storage

Choose the correct answer from the options given below:

Answer options
Option 1
Correct Answer
Explanation for 2026: 6 June Shift 1 ECO question 3

Q5:

Sustainable Economic Development

Medium

Arrange the following events in chronological order (oldest to latest)

(A) Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA)

(B) Saansad Adarsh Gram Yojana (SAGY)

(C) Central Pollution Control Board (CPCB)

(D) Sustainable Development Goals (SDGs)

Choose the correct answer from the options given below:

Answer options
Option 4
Correct Answer
Explanation for 2026: 6 June Shift 1 ECO question 5

Q6:

National Income

Easy

Payments which are made without any counterpart of services received by the payer are known as.

Answer options
Option 1
Correct Answer
Explanation for 2026: 6 June Shift 1 ECO question 6

Q7:

Forms of Market

Easy

Suppose the unit tax imposed by the government is Rs 2. If the firm produces and sells 10 units of goods, the total tax that the firm must pay to the government is Rs..............

Answer options
Option 3
Correct Answer
Explanation for 2026: 6 June Shift 1 ECO question 7

Q8:

Development Experience of India

Easy

Which of the following are parts of regional and global economic groupings?

(A) SAARC

(B) IMF

(C) European Union

(D) ASEAN

Choose the correct answer from the options given below:

Answer options
Option 2
Correct Answer
Explanation for 2026: 6 June Shift 1 ECO question 8

Q9:

Market Equilibrium

Easy

Equilibrium in a perfectly competitive market can be defined alternatively as:

Answer options
Option 2
Correct Answer
Explanation for 2026: 6 June Shift 1 ECO question 9

Q10:

Income & Employment

Easy

Which of the following depicts the actual meaning of marginal propensity to save (MPS)?

Answer options

Q11:

National Income

Easy

When there is unexpected fall in sales firms will have certain amount of unsold stock that they didn't anticipated. Such stock is known by:

Answer options

Q12:

Balance of Payments

Medium

Match List-I with List-II

List-IList-II
(A) Devaluation(I) When the government decreases the exchange rate of foreign currency.
(B) Foreign Exchange Market(II) Exchange rate is determined by the market forces.
(C) Revaluation(III) The market in which national currencies are traded for one another.
(D) Floating Exchange Rate(IV) Government action increases the exchange rate of foreign currency.

Choose the correct answer from the options given below:

Answer options

Q14:

Balance of Payments

Easy

The reserve bank sells foreign exchanges when there is a deficit in the balance of payment. This sale is called?

Answer options

Q15:

Introduction

Medium

Arrange the following in chronological order (oldest to latest).

(A) General Theory of Employment, Interest and Money

(B) Great Depression

(C) The Economic Consequences of the Peace

(D) An Enquiry into the Nature and Cause of the Wealth of Nations

Choose the correct answer from the options given below:

Answer options

Q16:

Government Budget

Easy

If the quantity of any good remains available the same after consuming by people such goods are called?

Answer options

Q17:

Government Budget

Easy

The change in equilibrium output that results from a unit increase or decrease in both taxes and government spending is called.

Answer options

Q18:

Forms of Market

Medium

The minimum point of the AVC in the short run and the minimum point of the LRAC curve is known as:

Answer options
Option 1,2
Correct Answer
Explanation for 2026: 6 June Shift 1 ECO question 18

Q19:

Government Budget

Easy

Expenditures incurred for purposes other than the creation of physical or financial assets of the central government are classified as which of the following?

Answer options

Q20:

Income & Employment

Medium

If the supply of final goods is assumed to be infinitely elastic at a constant price over a short period of time, aggregate output is determined solely by the value of aggregate demand. This is called.

Answer options

Q21:

Human Capital Formation

Easy

Which of the following are educational organizations?

(A) UGC

(B) NHAI

(C) AICTE

(D) NCERT

Choose the correct answer from the options given below:

Answer options

Q22:

Development Experience of India

Easy

Match List-I with List-II

List-IList-II
(A) Great Leap Forward(I) Students and professionals were sent to work and learn from the countryside.
(B) Great Proletarian Cultural Revolution(II) People collectively cultivated lands.
(C) Special Economic Zones(III) Industrializing the country on a massive scale.
(D) Commune system(IV) Attract foreign investors.

Choose the correct answer from the options given below:

Answer options

Q24:

Balance of Payments

Easy

In a fixed exchange rate system, the government's action that increases the exchange rate of foreign currency is called?

Answer options

Q25:

Production & Costs

Medium

Which one of the following conditions is incorrect?

(Where, SMC - Short term Marginal Cost, AVC - Average Variable cost, SAC - Short run average cost, LRMC - Long run marginal cost, LRAC - Long run average cost.)

Answer options

Q26:

National Income

Medium

Match List-I with List-II

List-IList-II
(A) GNPmp(I) GNPmp - Depreciation
(B) NNPmp(II) Net National Product at market prices + Other current transfers from the rest of the world
(C) National Disposable Income(III) GDPmp + Net factor income from abroad
(D) GDP deflator(IV) Nominal GDP / Real GDP

Choose the correct answer from the options given below:

Answer options

Q27:

Government Budget

Easy

____________ is the difference between the government's total expenditure and its total receipts excluding borrowing.

Answer options

Q28:

National Income

Easy

The benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised). What it is called?

Answer options

Q29:

Production & Costs

Easy

Match List-I with List-II

List-IList-II
(A) Constant returns to scale(I) When a proportional increase in all inputs results in an increase in output by a larger proportion.
(B) Decreasing Returns to Scale(II) The relationship between inputs used and output produced by the firm.
(C) Increasing Returns to Scale(III) When a proportional increase in all inputs results in an increase in output by a smaller proportion.
(D) Production function(IV) When a proportional increase in all inputs results in an increase in output by the same proportion.

Choose the correct answer from the options given below:

Answer options

Q30:

Market Equilibrium

Easy

The government imposed lower limit on the price that may be charged for a particular good or service is called?

Answer options

Q31:

Production & Costs

Easy

The marginal product of an input factor initially rises with its employment level and then, after a certain level of employment, it starts falling. this is known as:

Answer options

Q32:

Consumer Behaviour

Easy

Which line consists of all bundles that cost exactly equal to consumer income?

Answer options

Q33:

Income & Employment

Easy

The change in savings as per unit change in income is defined as.

Answer options

Q34:

Income & Employment

Easy

If all the people of the economy increase the proportion of income they save, the total value of savings in the economy will not increase - it will either decline or remain unchanged. This result is known as the___.

Answer options

Q35:

Development Experience of India

Medium

Arrange the following events in chronological order (oldest to latest).

(A) The Great Leap Forward

(B) First Five-Year Plan of India

(C) Economic Reforms of India

(D) Great Proletarian Cultural Revolution

Choose the correct answer from the options given below:

Answer options

Q36:

Economic Reforms (1991)

Easy

GATT stands for_

Answer options

Q37:

Development Experience (1947-90)

Medium

Arrange the following in chronological order (oldest to latest)

(A) The Tata Iron and Steel Company (TISCO).

(B) Introduction of railways in India.

(C) Removal of License Raj in India.

(D) Planning Commission in India

Choose the correct answer from the options given below:

Answer options

Q38:

National Income

Easy

Which of the following are the methods of calculating national income?

(A) Value added method

(B) Expenditure method

(C) Saving method

(D) Income method

Choose the correct answer from the options given below:

Answer options

Q39:

Development Experience (1947-90)

Medium

Which of the following are parts of the Green Revolution?

(A) High Yield Variety (HYV) seeds

(B) Self-sufficiency in food grains

(C) Land reforms

(D) Fertilizers and pesticides

Choose the correct answer from the options given below:

Answer options

Q40:

Economic Reforms (1991)

Medium

Arrange the following in chronological order (oldest to latest)

(A) WTO

(B) GATT

(C) LPG Policy in India

(D) GST in India

Choose the correct answer from the options given below:

Answer options

Q41:

Sustainable Economic Development

Easy

Environment and Global Warming

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 since the Industrial Revolution. Much of the recent observed and projected global warming is human-induced. It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation. Adding carbon dioxide, methane and such other gases (that have the potential to absorb heat) to the atmosphere with no other changes will make our planet's surface warmer. 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) and sea level has risen several inches. Some of the longer-term results of global warming are melting of polar ice with a resulting rise in sea level and coastal flooding; disruption of drinking water supplies dependent on snow melts; extinction of species as ecological niches disappear; more frequent tropical storms; and an increased incidence of tropical diseases. A UN Conference on Climate Change, held in Kyoto, Japan, in 1997, resulted in an international agreement to fight global warming which called for reductions in emissions of greenhouse gases by industrialised nations.

Which of the following agreement took place to deal with the global warming issues?

Answer options

Q42:

Sustainable Economic Development

Easy

Environment and Global Warming

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 since the Industrial Revolution. Much of the recent observed and projected global warming is human-induced. It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation. Adding carbon dioxide, methane and such other gases (that have the potential to absorb heat) to the atmosphere with no other changes will make our planet's surface warmer. 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) and sea level has risen several inches. Some of the longer-term results of global warming are melting of polar ice with a resulting rise in sea level and coastal flooding; disruption of drinking water supplies dependent on snow melts; extinction of species as ecological niches disappear; more frequent tropical storms; and an increased incidence of tropical diseases. A UN Conference on Climate Change, held in Kyoto, Japan, in 1997, resulted in an international agreement to fight global warming which called for reductions in emissions of greenhouse gases by industrialised nations.

As a result of global warming, by what rate atmospheric temperature rises?

Answer options

Q43:

Sustainable Economic Development

Easy

Environment and Global Warming

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 since the Industrial Revolution. Much of the recent observed and projected global warming is human-induced. It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation. Adding carbon dioxide, methane and such other gases (that have the potential to absorb heat) to the atmosphere with no other changes will make our planet's surface warmer. 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) and sea level has risen several inches. Some of the longer-term results of global warming are melting of polar ice with a resulting rise in sea level and coastal flooding; disruption of drinking water supplies dependent on snow melts; extinction of species as ecological niches disappear; more frequent tropical storms; and an increased incidence of tropical diseases. A UN Conference on Climate Change, held in Kyoto, Japan, in 1997, resulted in an international agreement to fight global warming which called for reductions in emissions of greenhouse gases by industrialised nations.

The lower atmospheric temperature of the earth is rising because of greenhouse gas emissions .Which of the following problem is associated with the given statement?

Answer options

Q44:

Sustainable Economic Development

Easy

Environment and Global Warming

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 since the Industrial Revolution. Much of the recent observed and projected global warming is human-induced. It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation. Adding carbon dioxide, methane and such other gases (that have the potential to absorb heat) to the atmosphere with no other changes will make our planet's surface warmer. 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) and sea level has risen several inches. Some of the longer-term results of global warming are melting of polar ice with a resulting rise in sea level and coastal flooding; disruption of drinking water supplies dependent on snow melts; extinction of species as ecological niches disappear; more frequent tropical storms; and an increased incidence of tropical diseases. A UN Conference on Climate Change, held in Kyoto, Japan, in 1997, resulted in an international agreement to fight global warming which called for reductions in emissions of greenhouse gases by industrialised nations.

Which of the following is the result of deforestation?

Answer options

Q45:

Sustainable Economic Development

Easy

Environment and Global Warming

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 since the Industrial Revolution. Much of the recent observed and projected global warming is human-induced. It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation. Adding carbon dioxide, methane and such other gases (that have the potential to absorb heat) to the atmosphere with no other changes will make our planet's surface warmer. 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) and sea level has risen several inches. Some of the longer-term results of global warming are melting of polar ice with a resulting rise in sea level and coastal flooding; disruption of drinking water supplies dependent on snow melts; extinction of species as ecological niches disappear; more frequent tropical storms; and an increased incidence of tropical diseases. A UN Conference on Climate Change, held in Kyoto, Japan, in 1997, resulted in an international agreement to fight global warming which called for reductions in emissions of greenhouse gases by industrialised nations.

CPCB stands for.

Answer options

Q46:

Money & Banking

Easy

Money

Reserve Bank is the only institution which can issue currency. When commercial banks need more funds in order to be able to create more credit, they may go to market for such funds or go to the Central Bank. Central bank provides them funds through various instruments. This role of RBI, that of being ready to lend to banks at all times is another important function of the central bank, and due to this central bank is said to be the lender of last resort. The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate or open market operations. Qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending which is done through moral suasion, margin requirement, etc.

Open Market Operations refers to buying and selling of bonds issued by the government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the government. there is another type of operation in which when the central bank buys the security, this agreement of purchase also has specification about date and price of resale of this security. This type of agreement is called a repurchase agreement. The interest rate at which the money is lent in this way is called the repo rate. Similarly, instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called a reverse repurchase agreement.

Which of the following is the quantitative tool of money supply used by Central Bank?

Answer options

Q47:

Money & Banking

Easy

Money

Reserve Bank is the only institution which can issue currency. When commercial banks need more funds in order to be able to create more credit, they may go to market for such funds or go to the Central Bank. Central bank provides them funds through various instruments. This role of RBI, that of being ready to lend to banks at all times is another important function of the central bank, and due to this central bank is said to be the lender of last resort. The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate or open market operations. Qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending which is done through moral suasion, margin requirement, etc.

Open Market Operations refers to buying and selling of bonds issued by the government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the government. there is another type of operation in which when the central bank buys the security, this agreement of purchase also has specification about date and price of resale of this security. This type of agreement is called a repurchase agreement. The interest rate at which the money is lent in this way is called the repo rate. Similarly, instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called a reverse repurchase agreement.

In open market operation if Central Bank is buying government securities, how this will impact the money supply in the market?

Answer options

Q48:

Money & Banking

Easy

Money

Reserve Bank is the only institution which can issue currency. When commercial banks need more funds in order to be able to create more credit, they may go to market for such funds or go to the Central Bank. Central bank provides them funds through various instruments. This role of RBI, that of being ready to lend to banks at all times is another important function of the central bank, and due to this central bank is said to be the lender of last resort. The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate or open market operations. Qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending which is done through moral suasion, margin requirement, etc.

Open Market Operations refers to buying and selling of bonds issued by the government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the government. there is another type of operation in which when the central bank buys the security, this agreement of purchase also has specification about date and price of resale of this security. This type of agreement is called a repurchase agreement. The interest rate at which the money is lent in this way is called the repo rate. Similarly, instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called a reverse repurchase agreement.

To discourage the lending by commercial bank which of the following tool can be used by Central Bank?

Answer options

Q49:

Money & Banking

Easy

Money

Reserve Bank is the only institution which can issue currency. When commercial banks need more funds in order to be able to create more credit, they may go to market for such funds or go to the Central Bank. Central bank provides them funds through various instruments. This role of RBI, that of being ready to lend to banks at all times is another important function of the central bank, and due to this central bank is said to be the lender of last resort. The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate or open market operations. Qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending which is done through moral suasion, margin requirement, etc.

Open Market Operations refers to buying and selling of bonds issued by the government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the government. there is another type of operation in which when the central bank buys the security, this agreement of purchase also has specification about date and price of resale of this security. This type of agreement is called a repurchase agreement. The interest rate at which the money is lent in this way is called the repo rate. Similarly, instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called a reverse repurchase agreement.

Who is the lender of last resort?

Answer options

Q50:

Money & Banking

Easy

Money

Reserve Bank is the only institution which can issue currency. When commercial banks need more funds in order to be able to create more credit, they may go to market for such funds or go to the Central Bank. Central bank provides them funds through various instruments. This role of RBI, that of being ready to lend to banks at all times is another important function of the central bank, and due to this central bank is said to be the lender of last resort. The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate or open market operations. Qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending which is done through moral suasion, margin requirement, etc.

Open Market Operations refers to buying and selling of bonds issued by the government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the government. there is another type of operation in which when the central bank buys the security, this agreement of purchase also has specification about date and price of resale of this security. This type of agreement is called a repurchase agreement. The interest rate at which the money is lent in this way is called the repo rate. Similarly, instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called a reverse repurchase agreement.

The interest rate at which the money is lent by the central bank with agreement of purchase that has specifications about date and price of resale of this security. This rate is called___

Answer options

CUET Economics 2026 6 June Shift 1 Past Year Question Paper

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