CUET Economics 2026 Slot 12 Past Year Paper with Solutions

Q1:

Macro

>

Government Budget

Easy

Calculate the gross fiscal deficit from the following given values (in Rs. crore).

Total expenditure= 10,00,000

Revenue receipts= 8,00,000

Non-debt creating capital receipts= 3,50,000

1,50,000

5,50,000

2,50,000

1,75,000

Correct Answer

Option 1

Correct Answer

Explanation

Q2:

Macro

>

National Income

Easy

Match List-I with List-II

List-I	List-II
(A) Final durable goods which are used in the production process for creation of goods	(I) Depreciation
(B) Wear and tear of capital	(II) Product method
(C) Measuring aggregate value of final goods and services produced by all the firms is part of	(III) Net value added
(D) Deduction of the value of depreciation from gross value added	(IV) Capital goods

Choose the correct answer from the options given below:

(A) - (II), (B) - (III), (C) - (I), (D) - (IV)

(A) - (IV), (B) - (II), (C) - (I), (D) - (III)

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (IV), (B) - (I), (C) - (II), (D) - (III)

Correct Answer

Option 4

Correct Answer

Explanation

Q3:

Indian Economic Development

>

Employment

Easy

What do you mean by disguised unemployment in a sector?

When less labourers are employed in one sector

When labourers employed in one sector are fully absorbed.

When demand for labourers suddenly increase in one sector.

When more than required number of labourers are employed in one sector.

Correct Answer

Option 4

Correct Answer

Explanation

Q4:

Indian Economic Development

>

Economic Reforms (1991)

Easy

Privatisation of the public sector enterprises (PSEs) by selling off part of the equity of PSE's to the public is known as ..................

Net investment

Gross investment

Reinvestment

Disinvestment

Correct Answer

Option 4

Correct Answer

Explanation

Q5:

Micro

>

Introduction

Easy

Which one of the following is not a central problem of an economy?

What to produce?

How to produce?

For whom to produce?

Why to produce?

Correct Answer

Option 4

Correct Answer

Explanation

Q6:

Macro

>

Balance of Payments

Easy

When transactions are made due to some reason other than to bridge the gap in the balance of payments, that is, when they are independent of the state of BoP then such international economic transactions are called as..........................

Autonomous

Endogenous

Accommodating

Fictitious

Correct Answer

Option 1

Correct Answer

Explanation

Q7:

Macro

>

Government Budget

Easy

Identify the goods that are excludable and rival in nature from the following:

Common Resource.

Club goods.

Private goods.

Public goods.

Correct Answer

Option 3

Correct Answer

Explanation

Q8:

Micro

>

Forms of Market

Medium

Which one of the following fulfills for supply curve of a firm under perfectly competitive market in the long run?

Rising part of the LRMC curve from and above the minimum point of LRAC

Falling part of the LRAC curve from and above the minimum point of LRMC

Rising part of the LRMC curve from and below the minimum point of LRAC

Rising part of the LRMC curve from and above the maximum point of LRAC

Correct Answer

Option 1

Correct Answer

Explanation

Q9:

Macro

>

Money & Banking

Easy

Which of the following options correctly explains the functions of money?

(A) Medium of exchange

(B) Measure of account

(C) Store of value

(D) Quality measuring standard

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation

Q10:

Micro

>

Forms of Market

Easy

Which of the following condtion does not exist in a perfectly competitive market?

The market consists of a large number of buyers and sellers.

Entry into the market as well as exit from the market are free for firms.

Each firm produces and sells a hetrogenous product.

Information is perfect.

Correct Answer

Option 3

Correct Answer

Explanation

Q11:

Macro

>

Income & Employment

Easy

What is the value of autonomous consumption from the given consumption function?

$C=150+0.8Y$

850

150

750

1050

Correct Answer

Option 2

Correct Answer

Explanation

Q12:

Macro

>

Money & Banking

Easy

Match List-I with List-II

List-I	List-II
(A) Lender of last resort	(I) 1/Cash reserve ratio
(B) Money multiplier	(II) Buying and selling government securities
(C) Open market operations	(III) RBI
(D) $M^d_t$ = kPY	(IV) Transaction demand for money is positively related to the real income of an economy.

Choose the correct answer from the options given below:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (I), (B) - (III), (C) - (IV), (D) - (II)

(A) - (III), (B) - (II), (C) - (I), (D) - (IV)

Correct Answer

Option 2

Correct Answer

Explanation

Q13:

Micro

>

Production & Costs

Easy

When a proportional increase in all inputs results in an increase in output by the half proportion, then the production function is said to display which returns to scale?

Increasing returns to scale

Constant returns to scale

Law of variable proportion

Decreasing returns to scale

Correct Answer

Option 4

Correct Answer

Explanation

Q14:

Micro

>

Market Equilibrium

Easy

Which one of the following formula is correct for the Marginal Revenue Product of the labor (MRP $_L$ )?

MRP $_L$ = AR × MP $_L$

MRP $_L$ = MR × MP $_L$

MRP $_L$ = MR × MR $_L$

MRP $_L$ = MP × MR $_L$

Correct Answer

Option 2

Correct Answer

Explanation

Q15:

Macro

>

Balance of Payments

Easy

Under which of the following exchange rate systems appreciation and depreciation take place in the exchange rate?

Under fixed exchange rate

Under floating exchange rate

Under controlled and regulated exchange rate

Under equal exchange rate

Correct Answer

Option 2

Correct Answer

Explanation

Q16:

Macro

>

Balance of Payments

Medium

Arrange the following statements about the effect of change in demand for foreign goods on foreign exchange rate in open economy in correct sequence.

(A) It leads to a shift in the demand curve towards right.

(B) More Rupee needed against a dollar.

(C) Demand for foreign goods and services increases in the economy.

(D) It leads to depreciation of the domestic currency in terms of dollars.

Choose the correct answer from the options given below:

(A), (B), (C), (D)

(A), (C), (B), (D)

(C), (A), (B), (D)

(C), (B), (D), (A)

Correct Answer

Option 3

Correct Answer

Explanation

Q17:

Indian Economic Development

>

Development Experience of India

Easy

Match List-I with List-II

List-I	List-II
(A) Special Economic Zones (SEZ )	(I) Quality of Life
(B) Human Development Index (HDI)	(II) 1991
(C) Economic reforms in India	(III) Exports and attracting foreign investors
(D) Great Leap Forward campaign	(IV) China

Choose the correct answer from the options given below:

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 1

Correct Answer

Explanation

Q18:

Macro

>

Income & Employment

Easy

If all the people of the economy increase the proportion of income they save (i.e. if the mps of the economy increases) the total value of savings in the economy will not increase – it will either decline or remain unchanged. What does it refer to in economics?

Paradox of swift

Paradox of crypto

Paradox of thrift

Paradox of gift

Correct Answer

Option 3

Correct Answer

Explanation

Q19:

Micro

>

Consumer Behaviour

Medium

Which of the following conditions of the indifference curve is violated when two indifference curves are intersecting each other?

The indifference curve slopes downward from left to right.

Higher indifference curve gives a higher level of satisfaction.

Marginal rate of substitution can not be calculated.

Slope of the indifference curve is positive.

Correct Answer

Option 2

Correct Answer

Explanation

Q20:

Macro

>

Income & Employment

Medium

Which is the correct sequence of determination of income in an economy as a result of change in autonomous expenditure?

(A) The output and aggregate demand increase.

(B) The increment in the autonomous investment in the economy is Rs. 10 Cr.

(C) The aggregate demand curve shifts in parallel upwards.

(D) The investment multiplier works in forward direction.

Choose the correct answer from the options given below:

(A), (B), (C), (D)

(D), (B), (C), (A)

(B), (D), (C), (A)

(C), (B), (D), (A)

Correct Answer

Option 3

Correct Answer

Explanation

Q21:

Macro

>

Money & Banking

Medium

Which of the following are correct about money measures?

(A) M1 = CU + DD

(B) M2 = M1 + Savings deposits with commercial banks

(C) M3 = M1 + Net time deposits of commercial banks

(D) M4 = M3 + Total deposits with Post Office savings organisations (excluding National Savings Certificates)

Choose the correct answer from the options given below:

(A), (C) and (D) only

(A), (B) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation

Q22:

Macro

>

Government Budget

Easy

Which one of the following item is not a part of non-plan expenditure?

Expenditure on interest payments

Expenditure on defence services

Expenditure on subsidies

Central assistance for State and Union Territory

Correct Answer

Option 4

Correct Answer

Explanation

Q23:

Indian Economic Development

>

Sustainable Economic Development

Easy

Which of the following options correctly explains the functions of the environment?

(A) It supplies resources including both renewable and non-renewable.

(B) It doesn't assimilate waste.

(C) It sustains life by providing genetic and bio diversity.

(D) It also provides aesthetic services like scenery.

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (C) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation

Q24:

Indian Economic Development

>

Rural Development

Easy

In which of the following year NABARD was set up in India?

1986

1984

1982

1985

Correct Answer

Option 3

Correct Answer

Explanation

Q25:

Micro

>

Production & Costs

Easy

Which of the following cost curve takes the shape of rectangular hyperbola?

Average variable cost curve

Average fixed cost curve

Average total cost curve

Marginal cost curve

Correct Answer

Option 2

Correct Answer

Explanation

Q26:

Macro

>

Income & Employment

Easy

The level of income where all the factors of production are fully employed in the production process is called..................

Employment capacity level of income

Full unemployment level of income

Full utilization level of income

Full employment level of income

Correct Answer

Option 4

Correct Answer

Explanation

Q27:

Macro

>

Balance of Payments

Easy

"When it is difficult to record all international transactions accurately, then a third element of BOP (apart from the current and capital accounts) is used." Identify the third reflector of Balance of Payments (BOP).

Errors and omissions

Foreign capital account

Private capital account

Government revenue account

Correct Answer

Option 1

Correct Answer

Explanation

Q28:

Micro

>

Production & Costs

Easy

Find the returns to scale for the following Cobb--Douglas production function.

$Q=L^{1/3}K^{3/4}$

Increasing returns to scale

Decreasing returns to scale

Constant returns to scale

No returns to scale

Correct Answer

Option 1

Correct Answer

Explanation

Q29:

Macro

>

Income & Employment

Easy

The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called .......................

Autonomous Investment.

Investment multiplier

Marginal propensity to consume

Marginal propensity to save

Correct Answer

Option 2

Correct Answer

Explanation

Q30:

Micro

>

Introduction

Easy

An economy in which both the private and the public sector coexist is known as a ....................

Dualistic economy

Mixed economy.

Futuristic economy

Strategic economy

Correct Answer

Option 2

Correct Answer

Explanation

Q31:

Indian Economic Development

>

Development Experience (1947-90)

Easy

Industries which can produce machine tools which are, in turn, used for producing articles for current consumption is known as..................

Consumption goods industry

Foreign trade industry

Capital goods industry

Banking industries

Correct Answer

Option 3

Correct Answer

Explanation

Q32:

Macro

>

National Income

Medium

Match List-I with List-II

List-I	List-II
(A) GDP	(I) NDP $_{MP}$ + NFIA
(B) GDP $_{FC}$	(II) C+I+G+X-M
(C) NDP $_{MP}$	(III) GDP $_{MP}$ - Depreciation
(D) NNP $_{MP}$	(IV) GDP $_{MP}$ - NIT

Choose the correct answer from the options given below:

(A) - (II), (B) - (III), (C) - (I), (D) - (IV)

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (II), (B) - (IV), (C) - (III), (D) - (I)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

Correct Answer

Option 3

Correct Answer

Explanation

Q33:

Micro

>

Consumer Behaviour

Medium

Arrange the following values of elasticity of demand of a downward sloping linear demand line in correct order starting from left to the right along with the demand curve.

(A) E $_d$ =0

(B) E $_d$ = ∞

(C) E $_d$ =1

(D) E $_d$ <1

Choose the correct answer from the options given below:

(B), (A), (C), (D)

(A), (B), (C), (D)

(B), (C), (D), (A)

(B), (A), (D), (C)

Correct Answer

Option 3

Correct Answer

Explanation

Q34:

Macro

>

Income & Employment

Medium

Which one of the following combinations are correct?

(A) ΔC/ΔY=Marginal Propensity to Consume (MPC).

(B) ΔS/ΔY=Marginal Propensity to Save (MPS).

(C) 1/1-APS=Investment Multiplier.

(D) 1/1- C=Investment Multiplier.

Choose the correct answer from the options given below:

(A), (C) and (D) only

(B), (C) and (D) only

(A), (B), (C) and (D)

(A), (B) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q35:

Indian Economic Development

>

Development Experience of India

Easy

The demographic indicator is related with which of the following?

Saving and Investment

Foreign trade

Population and its different aspects.

Sectoral development

Correct Answer

Option 3

Correct Answer

Explanation

Q36:

Indian Economic Development

>

Economic Reforms (1991)

Easy

From which of the following two inernational organisations India had to borrow for its balance of payment crisis?

ADB and World Bank

World Bank and IMF

IMF and UNO

UNESCO and World Bank

Correct Answer

Option 2

Correct Answer

Explanation

Q37:

Indian Economic Development

>

Development Experience (1947-90)

Easy

Arrange the following major events in the Indian economy in chronological order, starting from oldest to the latest.

(A) Set up of Planning Commission

(B) India's independence

(C) First phase of green revolution

(D) First five-year plan

Choose the correct answer from the options given below:

(A), (B), (C), (D)

(B), (A), (D), (C)

(B), (C), (D), (A)

(B), (C), (A), (D)

Correct Answer

Option 2

Correct Answer

Explanation

Q38:

Micro

>

Market Equilibrium

Easy

Match List-I with List-II

List-I	List-II
(A) Zero excess demand and zero excess supply situation occurs in	(I) Wage rate
(B) Imposition of price ceiling below the equilibrium price leads to an	(II) Perfectly competitive market
(C) Where the labour demand and labour supply curves intersect,it determines	(III) Excess supply.
(D) Imposition of price floor above the equilibrium price leads to an	(IV) Excess demand.

Choose the correct answer from the options given below:

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

(A) - (I), (B) - (IV), (C) - (II), (D) - (III)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

Correct Answer

Option 1

Correct Answer

Explanation

Q39:

Indian Economic Development

>

Economic Reforms (1991)

Easy

Arrange the following sequence of events related to liberalization, privatisation and globalisation in chronological order.

(A) General Agreement on Trade and Tariff (GATT)

(B) World Trade Organization (WTO)

(C) New Economic Policy (NEP) implementation in India

(D) Introduction of Goods and Service Tax (GST)

Choose the correct answer from the options given below:

(A), (C), (B), (D)

(B), (A), (C), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer

Option 1

Correct Answer

Explanation

Q40:

Macro

>

Money & Banking

Easy

Which of the following are the correct combinations of monetary instruments of RBI to regulate money supply in the economy?

(A) Bank rate

(B) Cash reserve ratio

(C) Savings bank interest rate for public

(D) Repo rate

Choose the correct answer from the options given below:

(A), (C) and (D) only

(C), (B) and (D) only

(A), (B), (C) and (D)

(A), (B) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q41:

Macro

>

National Income

Easy

Can the GDP of a country be taken as an index of the welfare of the people of that country? If a person has more income he or she can buy more goods and services and his or her material well-being improves. So it may seem reasonable to treat his or her income level as his or her level of well-being. GDP is the sum total of market value of final goods and services created within the geographical boundary of a country in a particular year. If the GDP of the country is rising, the welfare may not rise as a consequence. This is because the rise in GDP may be concentrated in the hands of very few individuals or firms. For the rest, the income may in fact have fallen. In such a case the welfare of the entire country cannot be said to have increased. Many activities in an economy are not evaluated in monetary terms. For example, the domestic services women perform at home are not paid for. The exchanges which take place in the informal sector without the help of money are called barter exchanges. In barter exchanges, goods (or services) are directly exchanged against each other.

Externalities refer to the benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised). Externalities do not have any market in which they can be bought and sold.Therefore, if we take GDP as a measure of welfare of the economy we shall be overestimating the actual welfare. This was an example of negative externality. There can be cases of positive externalities as well. In such cases, GDP will underestimate the actual welfare of the economy.

In occurrence of which type of externalities, GDP will underestimate the actual welfare of the economy?

Negative externalities

Positive externalities

Neutral externalities

No externalities

Correct Answer

Option 2

Correct Answer

Explanation

Q42:

Macro

>

National Income

Easy

Can the GDP of a country be taken as an index of the welfare of the people of that country? If a person has more income he or she can buy more goods and services and his or her material well-being improves. So it may seem reasonable to treat his or her income level as his or her level of well-being. GDP is the sum total of market value of final goods and services created within the geographical boundary of a country in a particular year. If the GDP of the country is rising, the welfare may not rise as a consequence. This is because the rise in GDP may be concentrated in the hands of very few individuals or firms. For the rest, the income may in fact have fallen. In such a case the welfare of the entire country cannot be said to have increased. Many activities in an economy are not evaluated in monetary terms. For example, the domestic services women perform at home are not paid for. The exchanges which take place in the informal sector without the help of money are called barter exchanges. In barter exchanges, goods (or services) are directly exchanged against each other.

Externalities refer to the benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised). Externalities do not have any market in which they can be bought and sold.Therefore, if we take GDP as a measure of welfare of the economy we shall be overestimating the actual welfare. This was an example of negative externality. There can be cases of positive externalities as well. In such cases, GDP will underestimate the actual welfare of the economy.

Why the services performed by women at home are not included in GDP?

Because they get payment for the work done by them.

Because they don't have other opportunities to work.

Because they are not paid money for the work done by them.

Because they are well paid from the outside job where they are employed.

Correct Answer

Option 3

Correct Answer

Explanation

Q43:

Macro

>

National Income

Easy

Can the GDP of a country be taken as an index of the welfare of the people of that country? If a person has more income he or she can buy more goods and services and his or her material well-being improves. So it may seem reasonable to treat his or her income level as his or her level of well-being. GDP is the sum total of market value of final goods and services created within the geographical boundary of a country in a particular year. If the GDP of the country is rising, the welfare may not rise as a consequence. This is because the rise in GDP may be concentrated in the hands of very few individuals or firms. For the rest, the income may in fact have fallen. In such a case the welfare of the entire country cannot be said to have increased. Many activities in an economy are not evaluated in monetary terms. For example, the domestic services women perform at home are not paid for. The exchanges which take place in the informal sector without the help of money are called barter exchanges. In barter exchanges, goods (or services) are directly exchanged against each other.

Externalities refer to the benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised). Externalities do not have any market in which they can be bought and sold.Therefore, if we take GDP as a measure of welfare of the economy we shall be overestimating the actual welfare. This was an example of negative externality. There can be cases of positive externalities as well. In such cases, GDP will underestimate the actual welfare of the economy.

The exchanges which take place in the informal sector without the help of money are called as ................

Private goods

Better exchanges

Barter payment

Barter exchanges

Correct Answer

Option 4

Correct Answer

Explanation

Q44:

Macro

>

National Income

Easy

Can the GDP of a country be taken as an index of the welfare of the people of that country? If a person has more income he or she can buy more goods and services and his or her material well-being improves. So it may seem reasonable to treat his or her income level as his or her level of well-being. GDP is the sum total of market value of final goods and services created within the geographical boundary of a country in a particular year. If the GDP of the country is rising, the welfare may not rise as a consequence. This is because the rise in GDP may be concentrated in the hands of very few individuals or firms. For the rest, the income may in fact have fallen. In such a case the welfare of the entire country cannot be said to have increased. Many activities in an economy are not evaluated in monetary terms. For example, the domestic services women perform at home are not paid for. The exchanges which take place in the informal sector without the help of money are called barter exchanges. In barter exchanges, goods (or services) are directly exchanged against each other.

Externalities refer to the benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised). Externalities do not have any market in which they can be bought and sold.Therefore, if we take GDP as a measure of welfare of the economy we shall be overestimating the actual welfare. This was an example of negative externality. There can be cases of positive externalities as well. In such cases, GDP will underestimate the actual welfare of the economy.

What do we refer to the benefits (or harms) a firm or an individual cause to another for which they are not paid (or penalised)?

Externality

Exempbility

Extractability

Exterbility

Correct Answer

Option 1

Correct Answer

Explanation

Q45:

Macro

>

National Income

Easy

Can the GDP of a country be taken as an index of the welfare of the people of that country? If a person has more income he or she can buy more goods and services and his or her material well-being improves. So it may seem reasonable to treat his or her income level as his or her level of well-being. GDP is the sum total of market value of final goods and services created within the geographical boundary of a country in a particular year. If the GDP of the country is rising, the welfare may not rise as a consequence. This is because the rise in GDP may be concentrated in the hands of very few individuals or firms. For the rest, the income may in fact have fallen. In such a case the welfare of the entire country cannot be said to have increased. Many activities in an economy are not evaluated in monetary terms. For example, the domestic services women perform at home are not paid for. The exchanges which take place in the informal sector without the help of money are called barter exchanges. In barter exchanges, goods (or services) are directly exchanged against each other.

Externalities refer to the benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised). Externalities do not have any market in which they can be bought and sold.Therefore, if we take GDP as a measure of welfare of the economy we shall be overestimating the actual welfare. This was an example of negative externality. There can be cases of positive externalities as well. In such cases, GDP will underestimate the actual welfare of the economy.

What is the sum total of market value of final goods and services created within the geographical boundary of a country in a particular year?

Gross National Product (GNP)

Gross Domestic Product (GDP)

Net National Product (NNP)

Liberalisation, Privatisation, Globalisation (LPG)

Correct Answer

Option 2

Correct Answer

Explanation

Q46:

Indian Economic Development

>

Human Capital Formation

Easy

Human capital considers education and health as a means to increase labour productivity. Human development is based on the idea that education and health are integral to human well-being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices which they value. Human capital treats human beings as a means to an end; the end being the increase in productivity.

Do you know how much the government spends on education? This expenditure by the government is expressed in two ways (i) as a percentage of 'total government expenditure' (ii) as a percentage of Gross Domestic Product (GDP). The percentage of 'education expenditure of total government expenditure' indicates the importance of education in the scheme of things before the government. The percentage of 'education expenditure of GDP' expresses how much of people's income is being committed to the development of education in the country.

Government of India has also started levying a 2 per cent 'education cess' on all Union taxes. The revenues from education cess has been earmarked for spending on elementary education. The spread of education and health services across different sectors of society should be ensured so as to simultaneously attain economic growth and equity. India has a rich stock of scientific and technical manpower in the world. The need of the hour is to better it qualitatively and provide such conditions so that they are utilised in India.

The percentage of ...........................expresses how much of people's income is being committed to the development of education in the country.

Developmental expenditure of GDP

Expenditure as a proportion of revenue

Expenditure made productivity

Education expenditure of GDP

Correct Answer

Option 4

Correct Answer

Explanation

Q47:

Indian Economic Development

>

Human Capital Formation

Easy

Human capital considers education and health as a means to increase labour productivity. Human development is based on the idea that education and health are integral to human well-being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices which they value. Human capital treats human beings as a means to an end; the end being the increase in productivity.

Do you know how much the government spends on education? This expenditure by the government is expressed in two ways (i) as a percentage of 'total government expenditure' (ii) as a percentage of Gross Domestic Product (GDP). The percentage of 'education expenditure of total government expenditure' indicates the importance of education in the scheme of things before the government. The percentage of 'education expenditure of GDP' expresses how much of people's income is being committed to the development of education in the country.

Government of India has also started levying a 2 per cent 'education cess' on all Union taxes. The revenues from education cess has been earmarked for spending on elementary education. The spread of education and health services across different sectors of society should be ensured so as to simultaneously attain economic growth and equity. India has a rich stock of scientific and technical manpower in the world. The need of the hour is to better it qualitatively and provide such conditions so that they are utilised in India.

On which level of education government spends revenue generated through education cess on all union taxes?

Higher secondary level education

University level education

Elementary level education

Research level education

Correct Answer

Option 3

Correct Answer

Explanation

Q48:

Indian Economic Development

>

Human Capital Formation

Easy

Human capital considers education and health as a means to increase labour productivity. Human development is based on the idea that education and health are integral to human well-being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices which they value. Human capital treats human beings as a means to an end; the end being the increase in productivity.

Do you know how much the government spends on education? This expenditure by the government is expressed in two ways (i) as a percentage of 'total government expenditure' (ii) as a percentage of Gross Domestic Product (GDP). The percentage of 'education expenditure of total government expenditure' indicates the importance of education in the scheme of things before the government. The percentage of 'education expenditure of GDP' expresses how much of people's income is being committed to the development of education in the country.

Government of India has also started levying a 2 per cent 'education cess' on all Union taxes. The revenues from education cess has been earmarked for spending on elementary education. The spread of education and health services across different sectors of society should be ensured so as to simultaneously attain economic growth and equity. India has a rich stock of scientific and technical manpower in the world. The need of the hour is to better it qualitatively and provide such conditions so that they are utilised in India.

Identify the source of human capital formation which is used as a means to increase labour productivity?

Industrial infrastructure

Physical infrastructure

Education and health

Agriculture and industry

Correct Answer

Option 3

Correct Answer

Explanation

Q49:

Indian Economic Development

>

Human Capital Formation

Easy

Human capital considers education and health as a means to increase labour productivity. Human development is based on the idea that education and health are integral to human well-being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices which they value. Human capital treats human beings as a means to an end; the end being the increase in productivity.

Do you know how much the government spends on education? This expenditure by the government is expressed in two ways (i) as a percentage of 'total government expenditure' (ii) as a percentage of Gross Domestic Product (GDP). The percentage of 'education expenditure of total government expenditure' indicates the importance of education in the scheme of things before the government. The percentage of 'education expenditure of GDP' expresses how much of people's income is being committed to the development of education in the country.

Government of India has also started levying a 2 per cent 'education cess' on all Union taxes. The revenues from education cess has been earmarked for spending on elementary education. The spread of education and health services across different sectors of society should be ensured so as to simultaneously attain economic growth and equity. India has a rich stock of scientific and technical manpower in the world. The need of the hour is to better it qualitatively and provide such conditions so that they are utilised in India.

If the human capital treats human beings as a means to an end then what does that end refers to in the above sentence?

Decrease in productivity.

Increase in productivity.

Fluctuation in productivity.

Neutrality in productivity.

Correct Answer

Option 2

Correct Answer

Explanation

Q50:

Indian Economic Development

>

Human Capital Formation

Easy

Human capital considers education and health as a means to increase labour productivity. Human development is based on the idea that education and health are integral to human well-being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices which they value. Human capital treats human beings as a means to an end; the end being the increase in productivity.

Do you know how much the government spends on education? This expenditure by the government is expressed in two ways (i) as a percentage of 'total government expenditure' (ii) as a percentage of Gross Domestic Product (GDP). The percentage of 'education expenditure of total government expenditure' indicates the importance of education in the scheme of things before the government. The percentage of 'education expenditure of GDP' expresses how much of people's income is being committed to the development of education in the country.

Government of India has also started levying a 2 per cent 'education cess' on all Union taxes. The revenues from education cess has been earmarked for spending on elementary education. The spread of education and health services across different sectors of society should be ensured so as to simultaneously attain economic growth and equity. India has a rich stock of scientific and technical manpower in the world. The need of the hour is to better it qualitatively and provide such conditions so that they are utilised in India.

What are the two ways through which expenditure by the government on education is expressed in percentage?

As % of total government expenditure and as % of Gross Domestic Product (GDP).

As % of total government revenue and as % of Gross National Product (GNP).

As % of total fiscal deficit and as % of Net Domestic Product (NDP).

As % of total government subsidies and as % of Net National Product (NNP).

Correct Answer

Option 1

Correct Answer

Explanation

CUET Economics 2026 PYQs21 May Shift 1. Free, no login required.

Q1:

Q2:

Q3:

Q4:

Q5:

Q6:

Q7:

Q8:

Q9:

Q10:

Q11:

Q12:

Q13:

Q14:

Q15:

Q16:

Q17:

Q18:

Q19:

Q20:

Q21:

Q22:

Q23:

Q24:

Q25:

Q26:

Q27:

Q28:

Q29:

Q30:

Q31:

Q32:

Q33:

Q34:

Q35:

Q36:

Q37:

Q38:

Q39:

Q40:

Q41:

Q42:

Q43:

Q44:

Q45:

Q46:

Q47:

Q48:

Q49:

Q50:

CUET Economics 2026 21 May Shift 1 Past Year Question Paper

CUET Economics Past Year Questions (Topic-Wise)