Macro

National Income

Medium

Which one of the following statements is NOT correct regarding investment?

Rise in the value of inventories of a firm over a year is treated as investment expenditure undertaken by the firm.

Residential investment refers to the addition of housing facilities.

Investment is the variable business investment, which is defined as the addition to the money holding in cash.

Change in inventories of a firm is treated as investment which may be planned or unplanned.

✅ Correct Option: 3

In economics, investment means addition to the stock of physical capital (machines, buildings) and change in inventories, not accumulation of cash holdings; so option 3 is incorrect. A rise in inventory value over the year is investment expenditure, residential investment is addition to housing, and inventory changes may be planned or unplanned, making the other statements correct.

2026: 19 May Shift 2

Choose the correct statement from the following.

2026: 21 May Shift 2

Determine the GDP in the phase of distribution when firm X gives Rs.120 to the workers as wages, and keeps the 50 as its profits. Similarly, firm Y gives 250 as wages and keeps 70 as profits.

2026: 31 May Shift 1

Match the LIST-I with LIST-II

GDP= Gross Domestic Product, GNP= Gross National Product, NNP= Net National Product

LIST-I		LIST-II
A. NNP at factor cost	I.	NNP
B. GNP - Depreciation	II.	National Income
C. GDP at market price	III.	Net investment
D. Gross investment - depreciation	IV.	$GNP_{MP}$ - Net factor income from abroad

Choose the correct answer from the options given below:

2025: 13 May Shift 2

What government planned for different economic activities is an application of which of the following?

2022: 15 July Shift 2

Coal used by a steel factory during the accounting year is a:

2023: 1 June Shift 1

Match List - I with List - II.

	List - I		List - II
(A)	Value of output	(I)	Sales + Change in stock
(B)	Operating surplus	(II)	Sales + Change in stock - Intermediate consumption
(C)	Profit	(III)	Rent + Interest + Royalty + Profit
(D)	Value added	(IV)	Corporation tax + Undistributed profit + Dividend

Choose the correct answer from the options given below :

Which one of the following statements is NOT correct regarding investment?

Solution

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CUET Economics Past Year Questions (Topic-Wise)