CUET Economics Question Paper with Solutions

The CUET 2024 exam will be held in Computer Based Test between May 15 and 31, 2024. Candidates preparing for the CUET 2024 Economics test may refer to this page to acquire the CUET Economics Question papers, Here we have provided you the CUET Memory Based Economics Question Paper 2023 with solutions. This Memory-based CUET Economics Question Paper 2023 will help you comprehend the types of questions that will be asked in the CUET Economics section.

CUET Economics Question Paper 2023

Memory-Based CUET Economics Question Paper 2023 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 of 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.

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CUET Economics Paper Pattern

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

CUET Economics Question Paper  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:

1. Banker to the public
2. Banker to the banks
3. Banker to the government
4. Lender of the last resort
5. 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:

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

1. Reduction in the value of currency III. Devaluation
2. Dilution of share in organisation I. Disinvestment
3. Restriction on trade by taxes IV. Tariff barriers
4. Rise in General price level II. Inflation

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