When will CUET 2024 Exam takes place?

The CUET 2024 exam will be held in Computer Based Test between May 15 and 31, 2024.

CUET Economics Question Paper with Solutions

Table of Contents

The CUET 2024 exam for Economics was held in offline mode on May 16. The CUET UG 2024 Economics question paper was moderate. However, several students felt the paper was too long and challenging. Furthermore, some students stated that they were unable to complete all of the questions during the duration.

Candidates who appeared for the test may refer to this page to acquire the CUET Economics Question Paper with solutions that will help you comprehend the types of questions that are asked and calculate their scores.

CUET Economics Question Paper 2024

Memory-Based CUET Economics Question Paper 2024 is very important for candidates who are going to choose Economics as a domain subject in CUET. According to the CUET exam pattern, the total marks for the Economics subject are 200. The Economics portion will comprise 50 questions, with candidates obliged to attempt 40 of them. The CUET Economics Question Paper of Last year is given on this page with Solution. Download the CUET Economics Question Paper to familiarise yourself with the exam structure.

Download the CUET Economics Syllabus PDF

CUET 2024 Economics Question Paper with Solutions

As per the schedule, the cute economics paper took place for 60 minutes starting from 10 A.M. to 11 A.M. After the conclusion of the exam, our subject expert shared the CUET UG Economics question paper with answers below.

1._________________ depicts what has actually happened.
Answer: Ex-Post

2. If the value of Investment Multiplier is 5 and the increased income is 800 crore in an economy, then find the value of change in the investment in the economy.
Answer: Rs 4000 crore

3. Which of the following statements are true?
(A) Quantitative tools control the extent of money supply by changing the CRR.
(B) There are two types of open market operations – outright and upright.
(C) A fall in the bank rate can decrease the money supply.
(D) Selling of a bond by RBI leads to reduction in quantity of reserves.
Answer: (A), (D), and (E) only

4. Paradox of Thrift means:
Answer: If all the people of the economy increase the proportion of income they save, the total value of investment in the economy will not increase, it will either decline or remain unchanged.

5. Match List-I with List-II:

List-I	List-II
(A) Bank Rate (B) Marginal Standing Facility (C) Repo Rate (D) Reverse Repo Rate	(I) Securities are pledged in order to repurchase (II) Minimum rate at which funds are provided for long term (III) Also known as Penal Interest Rate (IV) Central Bank borrows funds from commerical banks

Answer: (A) – (II), (B) – (III), (C) – (I), (D) – (IV)

6. Which of the following is not a function of Central Bank ?
Answer: It accepts deposits and give loans to people.

7. Article 112 deals with:
Answer: Union Budget
8. All those elements which create liability and decrease the assets of the government are known as:
Answer: Capital Receipts
9.Arrange the following elements in correct chronological sequence (earliest to latest) :
(A) Smithsonian Agreement
(B) Bretton Woods Conference
(C) Establishment of WTO
(D) Gold Standard
Choose the correct answer from the options given below:
Answer: (D), (B), (A), (C)
10. Under flexible exchange rate, when the price of domestic currency in terms of foreign currency increases, it is called .
Answer: Appreciation of domestic currency

11. Match List-I with List-II:

List-I	List-II
(A) Pegged exchange rate system (B) Managed floating (C) Bretton Woods Conference (D) Third element in BOP	(I) Setting up of IMF and World Bank (II) Fixed exchange rate system (III) Dirty floating (IV) Error and Omission Account

Choose the correct answer from the options given below:
Answer: (A) – (II), (B) – (III), (C) – (I), (D) – (IV)

12. Casualization of workforce would result in :
Answer: Increase in the vulnerability of the workforce.

13. Choose the correct chronological sequence in ascending order (earliest to latest) :
(A) Establishment of NABARD
(B) FRBMA (Fiscal Responsibility and Budget Management Act)
(C) Third Five Year Plan
(D) Nationalization of RBI
Answer: (D), (C), (A), (B)

14. implies that resource extraction is not above the rate of regeneration of resources and the wastes generated are within the assimilating capacity of the environment.
Answer: Carrying capacity

15. Government of India enacted the Right to Education Act in 2009 to make free education a Fundamental Right of all children in the age group of __________ years.
Answer: 6-14

16. Following are the sources of electricity generation in India. Arrange them in correct sequence on the basis of total power generation capacity (higher to lower):
A) Nuclear
(B) Thermal
(C) New and renewable energy
(D) Hydro
Choose the correct answer from the options given below :
Answer: (B), (D), (C), (A)

17. Arrange the following items in correct sequence:
(A) Competition Act
(B) FEMA
(C) FERA
(D) MRTP
Choose the correct answer from the options given below :
Answer: (D), (C), (B), (A)
18. The Great Leap Forward (GLF) campaign was initiated in _____________
Answer: 1958

19. Match List-I with List-II:

List-I	List-II
(A) Great Leap Forward (B) Mao Zedong (C) Brundtland Commission (D) Our Common Future	(I) Protecting the future generation (II) Aimed at industrialising the country on a massive scale (III) Introduced the Great Proletarian Cultural Revolution (IV) Seminar Report that explained sustainable development as meeting the basic needs of all for a better life

Choose the correct answer from the options given below
Answer: (A) – (II), (B) – (III), (C) – (I), (D) – (IV)

20. The second phase of the Green Revolution is termed from :
Answer: mid 1970s to mid-1980s

21. During 1980s, the growth rate in Pakistan improved ontccount of which of the following reasons?
Answer: High amount of foreign direct investment inflow

22. When there is unexpected rise in the sales .
Answer: There will be unplanned decumulation of inventories.
23. During the festive season, the currency deposit ratio .
Answer: increases
24. The European Monetary Union was created in .
Answer: 1999
25. Identify the correct statement in the context of Circular Flow of Income in a two sector economy:
Answer: Firms produce goods and services.
26. Identify the correct set of statements.
(A) Ex Ante Saving represents what is actually planned to save.
(B) Ex Post Saving represents what is actually planned plan to save.
(C) Ex Post Saving depicts what has actually happened.
(D) Ex Ante Post Saving represents what is actually saved.
Choose the correct answer from the options given below :
Answer: (A) and (C) only
27. Match List-I with List-II :

List-I (Elements)	List-II (Features)
(A) Annual Financial Statement (B) Capital Receipts (C) Capital Payment (D) Export > Import	(I) Create liabilities or reduce financial assets (II) Trade surplus (III) Main budget document (IV) Create financial assets or reduce liabilities

Choose the correct answer from the options given below:
Answer: (A) – (III), (B) – (I), (C) – (IV), (D) – (III)

Read the following passage and answer the next five questions.
In our quest to increase agricultural production during the last five decades or so, we almost totally neglected…
28. How is civic authority getting benefitted due to biocomposting?
They have to dispose reduced quantity of waste

29. Choose the correct statement concerned with the passage:

Answer: Earthworm takes less time to convert organic matter into compost with respect to the normal composting process.

30. Water bodies including groundwater system have suffered due to :

Answer: Chemical contamination and increased demand for irrigation

31. In certain parts of the country, cattle are maintained only because they.

Answer: Produce dung which is an important fertilizer and soil conditioner

32. What should be the suitable title for the above passage?
Answer: Bio composting

Read the following passage and answer the next five questions.
India had an independent economy before the advent of the British rule. Though agriculture was the main source of livelihood for most people…

33. Before the British rule, India was well known for which manufacturing industries’ products?
Answer: Cotton and Silk textiles, metal and precious stones, etc

34. What kind of interests was the colonial government concerned within the economic policy for Indian industries?
Answer: Provide protection and promotion of the economy of their home country

35. Choose the economists who estimated India’s National Income and Per Capita Income.
Answer: Dadabhai Naoroji, William Digby, Findlay Shirra V.K.R.V. Rao and R.C. Desai

36. What was the country’s growth of aggregate real output during the first half of the 20th century?
Answer: The country’s growth of aggregate real output was less than two percent coupled with a meagre half percent growth in per capita output per year.

37. According to the passage, which of the following statement was true about Indian industries’ products?
Answer: Indian products enjoyed a worldwide market based on quality of material used and the high standard of craftsmanship.

38. is a market where economic agents can freely exchange their endowments with each other.
Answer: Market economy

39. Which of the following are correct statements?
(A) Marginal Utility is the change in Total Utility due to consumption of one additional unit of commodity.
(B) Two Indifference Curves intersect each other.
(C) Marginal Utility becomes Zero at a level when Total Utility remains constant.
(D) Diminishing Marginal Rate of Substitution does not affect Indifference Curve.
(E) Indifference Curve slopes downwards from left to right.
Choose the correct answer from the options given below :
Answer: (A), (C), and (E) only

40. Match List-I with List-II:

List-I (Characteristic)	List-II (Implication)
(A) Equilibrium (B) Excess supply (C) Inferior good (D) Price ceiling	(I) Plans of all the consumers and firms in the market match (II) Demand decreases with an increase in income (III) Supply is greater than market demand (IV) Imposition of upper limit by government

Choose the correct answer from the options given below:
Answer: (A) – (I), (B) – (III), (C) – (II), (D) – (IV)

41. When Elasticity of Demand Curve is I at every point on the Demand Curve, this curve is known as:
Answer: Rectangular Hyperbola

42. According to the Theory of Consumer Behaviour, Inequality p1x1 + p2x2 ≤ M is called the Consumer’s___________ .
Answer: Budget Behaviour

43. Choose the correct statements from the following:
(A) Adam Smith is termed as Father of Modern Economics.
(B) J.M. Keynes gave the Theory of Income, Output and Employment.
(C) Four Sector Model = C + I + G + (X – M)
(D) Store of value is primary function of money. money.
Choose the correct answer from the options given below :
Answer: (A), (B), and (C) only

44. Rearrange the given statements in proper chronological sequence in an ascending order (earliest to latest) :
(A) General theory of Employment, Interest and Money by Keynes.
(B) Mahalanobis was made a fellow of Britain’s Royal Society.
(C) An Inquiry into the Nature and Cause of the Wealth of Nations by Adam Smith.
(D) The Economic Consequences of the Peang by Keynes.
Choose the correct answer from the options gigen Men below:
Answer: (C), (D), (A), (B)

45. If there is no government and no foreign trade then :
Answer: G = T = M = X = 0

46. The value of Nominal GDP is $1100 and the value of Real GDP is $ 1000. Find the value of GDP deflator.
Answer: 1.1

47. Identify the correct statements:
(A) Stocks are defined over a period of time.
(B) Flow’s are defined over a period of time.
(C) Flow’s are defined at a particular point of time.
(D) Stocks are defined at a particular point of time.
(E) GVA at factor costs + Indirect Taxes – Subsidies = GVA at market prices.
Choose the correct answer from the options given below :
Answer: (B), (D), and (E) only

48. If the supply of final goods is assumed to be infinite.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__________ Principle.
Answer: Effective demand

49. Nominal Interest Rate =
Answer: Real Interest Rate + Inflation rate

50. Value of MPS (Marginal Propensity to Save) is increased from 0.4 to 0.5. What would be the impact on Multiplier?
Answer: The size of the multiplier would be decreased.

CUET Economics Paper Pattern

Learn about the CUET Economics Question Paper & exam pattern in the table below.

Particulars	Details
Name of the Examination	Common University Entrance Test
Exam conducting Boday	National Testing Agency
Examination Mode	Computer-based mode
Total Marks	200
Total Questions	50
Number of questions to be answered	40
Duration of the Exam	45 Minutes
Marking Scheme	+5 marks for each correct answer -1 for each incorrect answer No marks will be deducted for unanswered questions

CUET Economics PYQs with Solutions

Q1. Workers who own and operate an enterprise to earn their livelihood are known as:

(a) Regular salaried employees
(b) Part time employees
(c) Casual wage labourers
(d) Self-employed
Ans. (d)

Sol. Self-employed workers are those who own and operate their own businesses. They are responsible for their own profits and losses, and they do not receive a regular salary from an employer.

Q2. In India. people are encouraged to open Bank accounts, besides promoting saving habit. this scheme intents to transfer all the benefits of government schemes and subsidies to accounts holder directly. This scheme is called____________.

(a) Pradhan Mantri Jan-Dhan
(b) Pradhan Mantri Gramoday Yojana
(c) Pradhan Mantri Rozgar Yojana
(d) Pradhan Mantri Swarna Jayanthi Yojana
Ans. (a)

Sol. The scheme that intents to transfer all the benefits of government schemes and subsidies to accounts holder directly is called Pradhan Mantri Jan-Dhan Yojana.

It is a financial inclusion scheme launched by the Government of India in 2014. The scheme aims to provide access to banking services to all households in India. It also aims to promote saving habits and to provide financial security to the poor and marginalized.

Q3. The Indian System of Medicine is called:

(a) BHARAT
(b) AYUSH
(c) IND MED
(d) VEDIC MED

Ans. (b)

Sol. AYUSH is an acronym for Ayurveda, Yoga, Unani, Siddha, and Homeopathy. These are five traditional systems of medicine that have been practiced in India for centuries.

Q4. In the calculation of GDP by Expenditure method what should added from the following:

(A) Private Final Consumption expenditure
(B) Investment Expenditure
(C) Net imports
(D) Net exports
(E) Government Final Consumption Expenditure

Choose the correct answer from the options given below:

(a) (B), (C), (D), (E) Only
(b) (A), (B), (D), (E) Only
(c) (C), (D), (E), (A) Only
(d) (A), (C), (B), (D) Only

Ans. (b)

Sol. The expenditure method of calculating GDP calculates GDP by adding up the following four components:

Private Final Consumption Expenditure: This is the spending by households on goods and services for their own consumption.
Investment Expenditure: This is the spending by businesses on capital goods, such as machinery and equipment.
Government Final Consumption Expenditure: This is the spending by the government on goods and services for its own consumption, such as defense and education.
Net Exports: This is the difference between a country’s exports and imports. Exports are goods and services produced in a country and sold to other countries. Imports are goods and services produced in other countries and bought by a country.

Q5. In addition to limited availability of resources, what is the other reason which compels every economy to decide on how to use its resources:

(a) Optimum utilisation of resources without cost advantage
(b) Resources do have competing usages
(c) Minimum wastage of resources
(d) Economical usage of resources

Ans. (b)

Sol. Every economy has to decide on how to use its resources because resources have competing usages. This means that there are many different ways to use the same resources, and each use has a different opportunity cost. For example, land can be used to grow food, build houses, or build factories. Each of these uses has a different opportunity cost. If land is used to grow food, then it cannot be used to build houses or factories.

Q6. Read the following facts about Indian economy during British rule and select correct facts:

(A) Commercialisation of agriculture led to the production of cash crops which help British industries back home
(B) Britain maintained a monopoly control over India’ s exports and imports
(C) Basic infrastructure such as railways, ports, water transport, posts and telegraphs did develop to provide basic amenities to the people
(D) Indian trade was restricted to Britain, China, Russia and America
(E) India’s economy remained fundamentally agrarian under the British rule

Choose the correct answer from the options given below:
(a) (A), (B) & (C) Only
(b) (A), (B) & (D) Only
(c) (A), (B) & (E) Only
(d) (A), (B), (C) & (E) Only

Ans. (c)

Sol. The correct options are (A), (B), and (E).

(A) Commercialization of agriculture led to cash crops, which British industries needed as raw materials.

(B) Britain maintained a monopoly control over India’s exports and imports. This meant that India could only trade with Britain and had to sell its goods to Britain at low prices and buy British goods at high prices.

(E) India’s economy remained fundamentally agrarian under the British rule. This means that most of the Indian population worked in agriculture and the Indian economy was dependent on agriculture.

Q7. _______________ are things a firm owns or what a firm can claim from other:

(a) Assets
(b) Liabilities
(c) Deposits
(d) Reserves

Ans. (a)

Sol. Assets are resources owned by a business that can be used to produce economic value. Assets can include things like cash, real estate, inventory, and accounts receivable, among others. Essentially, assets are what a firm owns or can claim from others, making them valuable resources that contribute to the firm’s financial health.

Q8. When percentage change in quantity demanded is less than the percentage change in price i.e., if the good is price inelastic, the expenditure on the good would ______________?

Identify the correct option from the following:
(a) Change in opposite direction as the price change
(b) Change in same direction as the price change
(c) Change in reverse direction to income
(d) Remain unchanged

Ans. (b)

Sol. When demand for a good is price inelastic, the percentage change in quantity demanded is less than the percentage change in price. In such a scenario, if the price of the good increases, total expenditure on the good also increases; if the price decreases, total expenditure also decreases.

This is because the proportionate decrease in quantity demanded is less than the proportionate increase in price, and vice versa. Therefore, the expenditure (which is Price x Quantity) would change in the same direction as the price change.

Q9. The government sector affects the personal disposable income of households by making transfers and collecting taxes’.

The above statement refers to which objective of the government budget?

(a) Allocation function
(b) Redistribution function
(c) Stabilisation function
(d) Management of public enterprises

Ans. (b)

Sol. The statement “The government sector affects the personal disposable income of households by making transfers and collecting taxes” refers to the redistribution function of the government budget.

The redistribution function of the government budget is concerned with the distribution of income and wealth in society. The government uses taxes and transfers to redistribute income from the rich to the poor. This can be done through progressive taxation, social welfare programs, and other policies.

Q10. The central bank performs the following functions:

Banker to the public
Banker to the banks
Banker to the government
Lender of the last resort
Issues one rupee coins

Choose the correct answer from the options given below:

(a) A, B and C only
(b) B, C and D only
(c) C, D and E only
(d) A, D and E only

Ans. (b)

Sol. The central bank performs the following functions:

Banker to the banks: The central bank provides banking services to commercial banks, such as clearing checks and providing loans.

Banker to the government: The central bank provides banking services to the government, such as managing the government’s debt and processing government payments.

Lender of last resort: The central bank provides loans to commercial banks when they are facing liquidity problems. This helps to prevent financial crises.

Q11. A tax that acts as an automatic stabiliser – a shock absorber, because it makes disposable income spending, less prone to fluctuation in GDP. That tax is –

(a) Sales Tax
(b) Income Tax
(c) Gift Tax
(d) Excise duty

Ans. (b)

Sol. Income tax is a progressive tax, which means that the higher the income, the higher the tax rate. This means that when incomes fall, tax revenue also falls, and vice versa. This helps to cushion the blow of economic downturns and to boost aggregate demand during times of economic expansion.

Q12. Possibility of using small-scale industries in India for promoting rural development is immense. Small Scale Industries are characterised by which technique?

(a) Capital Intensive
(b) Labour Intensive
(c) Government Intensive
(d) Land Intensive

Ans. (b)

Sol. Small scale industries are typically low-cost, low-tech industries that rely on manual labor rather than expensive machinery. This makes them ideal for rural areas, where there is often a surplus of labor but a shortage of capital.

Q13. A country’s consumption function described as C=500+0.7Y the Autonomous consumption

(a) 350
(b) 500
(c) 3500
(d) 350

Ans. (b)

Sol. Autonomous consumption is the part of consumption that is independent of income. In the consumption function C=500+0.7Y, the autonomous consumption is 500. This is because the 500 term does not depend on income.

Therefore, the answer is 500

Q14. The benefit of organic farming is.

(a) Limited shelf life
(b) Labour intensive
(c) Limited off-season crops
(d) Marketing issues

Ans. (b)

Sol. India has a comparative advantage in organic farming. Because organic farming involves a labor-intensive process. The abundance of labour places India in a better position to specialize in organic farming

Q15. Match List-I with List-II:

List-I		List-II
(A)	Reduction in value of currency	(I)	Disinvestment
(B)	Dilution of share in organisation	(II)	Inflation
(C)	Restriction on trade by taxes	(III)	Devaluation
(D)	Rise in general price level	(IV)	Tariff Barriers

Choose the correct answer from the options given below:

(a) (A)-(III), (B)-(II), (C)-(I), (D)-(IV)
(b) (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
(c) (A)-(IV), (B)-(II), (C)-(III), (D)-(I)
(d) (A)-(III), (B)-(I), (C)-(IV), (D)-(II)

S15. Ans. (d)

Sol. The correct matching of the items in List I and List II is:

List I List II