Premier CUET Economics

As per NTA Syllabus and Guidelines for Common Universities Entrance Test (CUET)
Dr. Tripathi's
CUET
Hand Book for
ECONOMICS
Naveen Sadhu
Amit Mehrotra Including
• Strictly Based on NCERT Textbook
• Pointwise Summary of NCERT chapters in
Simple Language
• More than 1500 MCQs with Answers
• All Variety of MCQs as per NTA Guidelines
• 5 Sample Question Papers for Practice
• Specially Designed for CBT (Computer Based Test)
PREMIER PUBLICATIONS
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Time : 45 Minutes Max. Marks 200
General Instructions :
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There are total 45 Multiple choice questions.
1. All questions carry equal marks.
2. Student can attpemt any 35 questions.
3. There will be negative Mark of one per incorrect attempts.
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1. Human wants ____________ are in response to satisfy their wants?
(a) Unlimited (b) Limited (c) Scarce (d) Multiple
2. All wants of an individual are not of:
3.
(a) Equal importance
(c) Fixed importance b
Which of these is an example of macro economics:
(b) Immediate importance
(d) All of the above
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(a) Problem of unemployment in India (b) Rising price level in the country
(c) Increase in disparities of income (d) All of the above
4. Total utility is maximum when:
(a) Marginal utility is zero. (b) Marginal utility is at its highest point.
(c) Marginal utility is negative. (d) None of the above.
5. National income is the sum of factor incomes accruing to :
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(a) Nationals (b) Economic territory

(c) Residents (d) Both residents and non-residents
6. Which is the example of flow?
(a) Consumption (b) Investment (c) Income (d) All the above
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7. Which of the following is the consumption sector.

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(a) Households (b) Firms (c) Foreign (d) Government

8. If MPC = 1, the value of multiplier is (choose the correct alternative).
(a) 0 (b) 1 (c) Between 0 and 1 (d) Infinity
9. Domestic economy includes :
(a) Household sector (b) Produces sector (c) Government sector (d) all of these
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10. Which one is not the component of aggregate supply?

(a) Rent (b) Wages (c) Interest and profit (d) Investment
11. Those workers who do not get any pension or gratuity benefits are know as :
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(a) Regular workers (b) Self employed workers

(c) Casual workers (d) Both (b) and (c)
Premier CUET Economics Sample Question Paper–1 1

12. Which type of unemployment is found in agricultural sector?
(a) Structural unemployment (b) Educated unemployment
(c) Industrial unemployment (d) Disguised unemployment
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13. The ratio of labour force to total population is termed as.
(a) Workforce (b) Labour force participation rate
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(c) Both (a) and (b) (d) Neither (a) nor (b)
14. How many recognised systems of medicine India has?
(a) 12 (b) 6 (c) 10 (d) 3
15. Which of the following is not component(s) of social infrastructure?
(a) Road (b) Communication (c) Electricity (d) All of these
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16. Which of the following facilities is included in social infrastructure?
(a) Roads and highways (b) Housing (c) Internet (d) Electricity
17. Which of the following is an important function of environment?
(a) To provide sources for production (b) To provide all these service
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(c) To assimilate waste (d) All of these
18. Identify the correct sequence of alternatives given in Column-II by matching them with respective
terms in Column-I.
Column-I Column-II
A.
B.
Reform in India
Reform in China
b (i)
(ii)
1980
1988
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C. Reform in Pakistan (iii) 1991
D. One child policy (iv) 1978
Choose the correct alternatives :

(a) A–(iv), B–(iii), C–(i), D–(ii) (b) A–(iii), B–(iv), C–(ii), D–(i)
(c) A–(ii), B–(iv), C–(iii), D–(i) (d) A–(i), B–(ii), C–(iv), D–(iii)
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19. Read the following statement carefully and choose the correct alternative from the following :
Statement–1 : Over the past few decades, there has been a drastic rise in global warming.
Statement–2 : The push of economic development has increased the emission of greenhouse gases into
atmosphere.
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Alternatives :
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(a) Both the statements are true (b) Both the statements are false
(c) Statement-1 is true and Statement-2 is false (d) Statement-2 is true and Statement-1 is false
20. LPG is an example of ____________.
(a) Bio-energy (b) Solar energy (c) Wind energy (d) Natural gas
21. Which of the following statement is correct?
(a) Domestic product includes contribution of only resident producers with in the domestic territory of
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the country.
(b) Bharat is living is his own house. So rent of his house should not be included in national income.
(c) Savings are stock variable
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(d) Domestic income of a country can be more than its national income.
2 Sample Question Paper–1 Premier CUET Economics

22. The branch of economic theory that deals with the problem of allocation of resources is __________.
(a) Micro-Economic theory. (b) Macro-Economic theory.
(c) Econometrics. (d) None of the above
23. Which of the following statement is incorrect?
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(a) Goods produced for self-consumption will be included in national income.
(b) Purchase of machinery from abroad is a part of domestic capital formation.
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(c) Gross domestic capital formation is always greater than gross fixed capital formation.
(d) Salaries to Indian employees working in foreign embassies located in India are a part of net factor
income from abroad.
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terms in Column-I.
Column-I Column-II
A. Instrument of monetary policy (i) Inflationary gap
B. Instrument of fiscal policy (ii) Open market operation
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C. The gap by which AD exceeds AS at full (iii) Deflationary gap
employment
D. The gap by which AD falls short of AS at full employment (iv) Public spending
Choose the correct alternative :

(a) A–(iv), B–(ii), C–(iii), D–(i)
(c) A–(ii), B–(i), C–(iv), D–(iii)
b (b) A–(ii), B–(iv), C–(i), D–(iii)
(d) A–(iii), B–(i), C–(iv), D–(ii)
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Statement–1 : The nature of employment in India is multifaceted.
Statement–2 : The number of persons, who are actually employed at a particular time are known as
labour force.
Alternatives :
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26. Which one of the following is a cause of land degration?
(a) Loss of vegetation due to deforestation (b) Overgrazing
(c) Encroachment into forest lands (d) All of these
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27. Economic development includes :

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(a) Economic growth (b) Economic welfare (c) Both (a) and (b) (d) None of these
28. Which type of economic system is followed in china?
(a) Mixed economy (b) Socialist economy (c) Capitalist economy (d) None of these
29. When were reforms introduced in Pakistan?
(a) 1988 (b) 1990 (c) 1958 (d) 1900
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30. Which of the following is not the functions of the central bank?
(a) Banking facilities to government (b) Banking facilities to public
(c) Lending to government (d) Lending to commercial bank
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31. The non-tax revenue in the followings is :

(a) Export duty (b) Import duty (c) Dividends (d) Excise

32. Price of one currency in relation to foreign currency is determined by the forces of demand and supply
is known as :
(a) Equilibrium rate (b) Exchange rate
(c) Fixed exchange rate (d) Flexible exchange rate
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33. Financial sector reforms mainly relate to :
(a) Banking sector (b) Foreign exchange market
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(c) Both (a) and (b) (d) Insurance sector
34. Industrial policy resolution classified industries into :
(a) 5 categories (b) 4 categories (c) 3 categories (d) 2 categories
35. Which of the following statements is incorrect?
(a) NABARD is the apex institution at the national level for agricultural credit.
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(b) Operation Flood is related to milk production.
(c) Diversification towards livestock, fisheries etc decrease the risk of losing income in primary sector.
(d) Money lenders are institutional source of credit.
36. Economic growth requires ____________.
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(a) Human capital (b) Physical capital (c) Both (a) and (b) (d) Neither (a) nor (b)
terms in Column-I.
Column-I Column-II
A.
B.
b
Study Group formed by Planning Commission for Poverty
Task force on Projections of the Minimum Needs and effective
(i)
(ii)
2005
1962
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Consumption Needs
C. MGNREGA (iii) 2014
D. Jan Dhan Yojana (iv) 1979

(a) A-(ii), B-(iii), C-(iv), D-(i) (b) A-(iii), B-(ii), C-(i), D-(iv)
(c) A-(i), B-(ii), C-(iii), D-(iv) (d) A-(ii), B-(iv), C-(i), D-(iii)
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Statement–1 : New Economic Policy is also known as the LPG Model of growth.
Statement–2 : New Economic Policy of India was launched in the year 1991 under the leadership of P. V.
Narasimha Rao.
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Alternatives :
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39. Identify the incorrect statement from the following :
(a) Import substitution aims at protecting foreign industries from domestic industries.
(b) The green revolution enabled the government to procure sufficient amount of grains to build buffer
stock.
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(c) The effect of tariffs and quotas is that they restrict imports and protected domestic firms from foreign
competition.
(d) Growth leads to decline in percentage of agriculture to GDP.
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40. In India which of the following organisation regulate the health sector?
(a) AICTE (b) UGC (c) ICMR (d) None of these

Read the following excerpts carefully and answer the questions (Q. No. 41 to 45) on your understanding
of the passage :
The inflationary gap represents the point in the business cycle when the economy is expanding. Due to the
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higher number of funds available within the economy, consumers are more inclined to purchase goods and
services. As demand for goods and services increases but production has not yet compensated for the shift,
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prices rise to restore market equilibrium.
When the potential GDP is higher than the real GDP, the gap is instead referred to as a deflationary gap.
The other type of output gap is the recessionary gap, which describes an economy operating below its full-
employment equilibrium.
A government may choose to use fiscal policy to help reduce an inflationary gap, often through decreasing
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the number of funds circulating within the economy. This can be accomplished through reductions in government
spending, tax increases, bond and securities issues, and transfer payment reductions. Central banks also have
tools at their disposal to combat inflationary activity.
41. A fiscal policy measure to combat deflationary gap is ___________.
(a) Increase in tax rates
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(b) Decrease in government expenditure
(c) Increase in price level
(d) Increase in government expenditure
42. To reduce credit availability in the economy, the Central Bank may ___________.
(a) Buy securities in the open market
(b) Reduce reserve ratio
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(c) Reduce repo rate
(d) Sell securities in the open market
terms in Column-I.
Column-I Column-II
A. Excess demand (i) AS > AD at full employment
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B. Reason for excess demand (ii) AD > AS at full employment

C. Impact of excess demand (iii) Increase in public spending
D. Deficient demand (iv) Inflation
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(a) A–(iv), B–(ii), C–(iii), D–(i) (b) A–(iv), B–(iii), C–(i), D–(ii)
(c) A–(ii), B–(iii), C–(iv), D–(i) (d) A–(iii), B–(i), C–(iv), D–(ii)
44. Multiplier is directly related to :
(a) MPC (b) MPS
(c) Level of aggregate consumption (d) Level of aggregate saving
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45. When planned saving is less than planned investment then :

(a) Increase in unplanned inventories
(b) Decrease in unplanned inventories
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(c) No change in inventories

(d) Decrease in production, employment and income

Answer Key
1. (a) 2. (a) 3. (d) 4. (a) 5. (c) 6. (d) 7. (a) 8. (d) 9. (d) 10. (d)
11. (d) 12. (d) 13. (b) 14. (b) 15. (d) 16. (b) 17. (b) 18. (b) 19. (a) 20. (d)
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21. (d) 22. (a) 23. (c) 24. (b) 25. (c) 26. (d) 27. (c) 28. (b) 29. (a) 30. (b)
31. (c) 32. (d) 33. (a) 34. (c) 35. (c) 36. (c) 37. (d) 38. (a) 39. (a) 40. (c)
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41. (d) 42. (d) 43. (c) 44. (a) 45. (b)
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1. Which of the following does not suggest a macro approach for India?
(a) Determining the GNP of India.
(b) Finding the causes of failure of ABC Ltd.
(c) Identifying the causes of inflation in India.
2.
b
(d) Analyse the causes of failure of industry in providing large scale employment
Which of the following is not a subject matter of Micro-economies?
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(a) The price of mangoes.
(b) The cost of producing a fire truck for the fire department of Delhi, India.
(c) The quantity of mangoes produced for the mangoes market.
(d) The national economy’s annual rate of growth.
3. Which of the following falls under micro economics?
(a) National Income
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(b) General price level

(c) Factor pricing
(d) National saving and investment
4. An Increase in demand can result from :
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(a) A decline in the market price

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(b) An increase in income

(c) A reduction in the price of substitutes
(d) An increase in the price of complements
5. The second glass of lemonade gives lesser satisfaction to a thirsty boy. This is a clear case of :
(a) Law of demand. (b) Law of diminishing returns.
(c) Law of diminishing utility. (d) Law of supply.
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6. Which of the following is not a component of balance of payment?

(a) Current Account (b) Balance of Trade (c) Nominal Account (d) Capital Account
7. Most of studies disclosed that India’s growth of aggregate real output during the first half of the twentieth
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century was less than.

(a) 5% (b) 0.5% (c) 2% (d) 1.5%

8. NITI stands for–
(a) National Institution for Transforming India
(b) National Institute for Transforming India
(c) National Institute for Transformation in India (d) National Institution for Transformation in India
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9. Privatisation promotes :
(a) Socialist pattern efficiency (b) Increased efficiency
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(c) Producer’s Sovereignty (d) Laissez faire system
10. Which of the following is a reason of poverty in India.
(a) Rising prices (b) Low level of GDP (c) Rising population (d) All of these
11. Which of the following is a reason for poor human capital formation in India.
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(a) Brain drain (b) Insufficient resources
(c) High growth of population (d) All of these
12. Which of the following is not a key element of action plan for rural development?
(a) Organic farming (b) Rural market (c) Entertainment (d) Rural banking
13. India was well known for which of the following handicraft industries?
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(a) Leather industry (b) Iron and steel industry
(c) Metal industry (d) All of the above
14. Which of the following are type of on the job training?
(a) On Campus training (b) Off campus training
(c) Both (a) and (b) b (d) None of these
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terms in Column-I.
Column-I Column-II
A. Substitute Goods (i) Automobile and Petrol
B. Inferior Good (ii) Tomato and Tomato Puree
C. Complimentary Goods (iii) Double Toned Milk
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D. Diamond (iv) Conspicuous good

(a) A–(iii), B–(ii), C–(i), D–(iv) (b) A–(iv), B–(iii), C–(i), D–(ii)
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(c) A–(iv), B–(iii), C–(ii), D–(i) (d) A–(ii), B–(iii), C–(i), D–(iv)
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16. Repo rate relates to ____________.

(a) Short-term borrowing by commercial banks. (b) Long-term borrowing by commercial banks.
(c) Disinvestments. (d) Dis-savings
17. Statement–1 : Balance of payment is the difference between inflow and outflow of Foreign exchange on
account of economic transaction with the rest of the world.
Statement–2 : A country always tries to balance the BOP i.e., balance in current account equals to balance
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in capital account.
Alternatives :
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18. Before 1921, India was in the ____________ of demographic transition.
(a) First stage (b) Second stage (c) Third stage (d) None of the above
(a) Meaning of modernization is restricted to the use of new technology only.
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(b) Land reforms and Green revolution are the initiatives which helped India to become self sufficient in
food grains production.
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(c) Import substitution aims at protecting foreign industries from domestic industries.
(d) Land reforms were the only reforms introduced to bring equity in agriculture.
terms in Column-I.
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Column-I Column-II
A. Factor income (i) Old age pension
B. Transfer income (ii) Stock variable
C. Production of goods in a year (iii) Wage
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D. Population (iv) Flow variable

(a) A–(i), B–(iii), C–(ii), D–(iv) (b) A–(ii), B–(i), C–(iv), D–(iii)
(c) A–(iv), B–(ii), C–(i), D–(iii)
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21. Which one of the following statement is incorrect?
(a) Value of multiplier will be infinity if. MPC = 1
(d) A–(iii), B–(i), C–(iv), D–(ii)
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(b) Decrease in government spending is a measure to correct excess demand.
(c) Equilibrium beyond the full employment level does not lead to rise in output level.
(d) Increase in money supply is a measures to correct excess demand.
Statement–1 : Those activities which contribute to the gross national product are called economic activities.
Statement–2 : Hired workers are those workers who work for others and get wages and salaried as a
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reward for their service.

Alternatives :
(a) Both the statements are true
(b) Both the statements are false
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(c) Statement-1 is true and Statement-2 is false

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(d) Statement-2 is true and Statement-1 is false

23. ____________ include hospitals with better facilities of health care like X-ray, surgeries, ECG etc.
(a) Primary health care (b) Secondary heath care
(c) Tertiary heath care (d) None of these
24. Which of the following is a semi-durable goods?
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(a) Radio (b) Clothes (c) Milk (d) Petrol

25. Multiplier is the ratio of increase in income to given increase in
(a) Supply (b) Demand (c) Investment (d) Capital structure
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26. AD schedule shows the relationship between

(a) AD and Y (b) C and S (c) C and I (d) None of these

27. Consumption depends on :
(a) Income (b) Investment (c) Saving (d) None of these
28. Most of the disguised unemployed persons in India are found in :
(a) Agriculture (b) Industry (c) Trade (d) Transport
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29. An arrangement in which a worker a worker uses his efforts for others to make a living, is known as:
(a) Self Employment (b) Wage Employment
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(c) Regular Employment (d) Employment in organised sector
30. The major cause of unemployment in India can be classified as :
(a) Under development (b) Defective planning
(c) Rapid population growth (d) All of these
31. Which of the following serve as a driving force of production activity in the economy?
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(a) Population (b) Economic Infrastructure
(c) Literacy (d) None of these
32. Which of the following is not a component of economic infrastructure?
(a) Health (b) Power (c) Communication (d) Transport
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33. Which of the following is an example of non-commercial energy?
(a) Firewood (b) Agricultural waste (c) Cow-dung (d) All of these
terms in Column-I.
A. Renewable resources
Column-I b (i) Rocks, metals
Column-II
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B. Non-renewable resources (ii) Fisheries, livestock, humans
C. Biotic resources (iii) Resources which can be reproduced
D. Abiotic resources (iv) Resources which cannot be regenerated

(a) A–(ii), B–(iv), C–(iii), D–(i)
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(b) A–(ii), B–(i), C–(iii), D–(iv)

(c) A–(iii), B–(iv), C–(ii), D–(i)
(d) A–(iii), B–(ii), C–(i), D–(iv)
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(a) The One-child norm introduced in China is the major reason for low population growth.
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(b) In all the three economies, the industry and service sectors have less proportion of workforce but
contribute more in terms of output.
(c) China’s growth is mainly contributed by the industrial sector and India’s growth by the service
sector.
(d) Great Leap Forward (GLF) campaign aimed at industrialising the country on a massive scale.
36. Which of the following is incorrect?
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(a) There are six-recognised systems of Indian medicine.

(b) Agricultural sector is the biggest user of electricity in India.
(c Natural gas is used as raw material in fertiliser and petroleum products.
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(d) Infrastructure induces investment.
1 0 Sample Question Paper–2 Premier CUET Economics

Statement–1 : Women’s health across the country has become a matter of great concern with reports of
increasing cases of female foeticide and mortality.
Statement–2 : Health is not a yardstick of human well-being, physical as well as mental.
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Alternatives :
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38. Keynesian theory of employment is based on the assumption of ___________.
(a) Long-run (b) Short-run (c) Full employment (d) None of these
39. Abiotic elements of environment is :
(a) Air (b) Human (c) Birds (d) Fish
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40. From the following renewable resource is :
(a) Trees (b) Fossil fuel (c) (a) and (b) (d) None of the above
of the passage :
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Fiscal deficit can prove inflationary if deficit is financed by printing of new currency as it will increase the
money supply and purchasing power in the economy. It will further worsen the situation if new money is
used to finance the current consumption expenditure of the government. However, if the increase in money
supply leads to increased supply of goods and services or new money is used for infrastructural activities or
41. Fiscal deficit equals :

b
other capital projects, then fiscal deficit will not prove to be inflationary
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(a) Primary deficit — Interest payments
(b) Primary deficit + Interest payment
(c) Total budget expenditure – Total budget receipts
(d) None of the above
42. Which of the following developments can occur in an economy due to deficit financing?
(i) Rise in Inflation
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(ii) Rise in government budget

(iii) Increase in money supply
(iv) Improvements in current account deficit
Alternatives :
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(a) (i) and (ii) only (b) (i), (iii) and (iv) (c) (ii) and (iv) only (d) (i), (ii) and (iii)
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43. Fiscal deficit is financed through :

(a) Market borrowing
(b) Borrowing from the central bank
(c) Borrowings from foreign government
(d) All of these
44. Fiscal deficit leads to :
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(a) Inflationary pressure (b) Foreign dependence (c) Financial burden (d) All of these
45. A government budget shows a fiscal deficit of ` 4400 crore. The revenue expenditure on interest
payments is ` 400 crore. How much is the primary deficit?
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(a) ` 4700 crore (b) ` 4800 crore (c) ` 4000 crore (d) ` 3800 crore
Premier CUET Economics Sample Question Paper–2 1 1

Answer Key
1. (b) 2. (d) 3. (c) 4. (b) 5. (c) 6. (c) 7. (c) 8. (a) 9. (b) 10. (d)
11. (d) 12. (c) 13. (c) 14. (c) 15. (d) 16. (a) 17. (c) 18. (a) 19. (b) 20. (d)
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21. (d) 22. (a) 23. (b) 24. (b) 25. (c) 26. (a) 27. (a) 28. (a) 29. (b) 30. (d)
31. (b) 32. (a) 33. (d) 34. (c) 35. (b) 36. (b) 37. (c) 38. (b) 39. (a) 40. (a)
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41. (b) 42. (d) 43. (d) 44. (d) 45. (c)
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1. Unforeseen obsolescence of fixed capital assets during production is :
(a) Consumption of fixed capital (b) Capital loss
(c) Income loss (d) None of the above
2. Sales + Change in stock =
3.
(a) Value of output
Which is not called factor income?
b
(b) Gross sales (c) Gross value added (d) Net value added
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(a) Profit (b) Rent (c) Wages (d) Gifts from abroad
4. What does C/Y indicate?
(a) MPC (b) APC (c) Breakeven point (d) None of these
5. Which of the following measures is the best to correct deficient demand?
(a) Deficit financing
(b) Increase in SLR
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(c) Increase in repo rate

(d) Raising the limit of margin requirement of secured loans
6. According to the theory of Keynesian Economics, the value of Average Propensity to Consume can
never be :
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(a) Positive (b) Zero (c) More than one (d) Less than one
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7. Unemployment refers to people.

(a) Who are not willing to work.
(b) Who are willing but not get work.
(c) Who leave their jobs in search of better ones.
(d) Who have been dismissed because of incorrect practice.
8. A situation where in a worker does not get a full time job, is known as :
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(a) Open unemployment (b) Disguised unemployment

(c) Underemployment (d) Frictional unemployment
9. Less employment of females in comparison to males is indication of :
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(a) Economic backwardness (b) Social backwardness

(c) Both (a) and (b) (d) None of these

10. Which of the following is a conventional source of energy?
(a) Solar Energy (b) Wind Energy (c) Petroleum (d) Biomass
11. Which of the following is not a non-conventional source of energy?
(a) Solar Energy (b) Wind Energy (c) Petroleum (d) Biomass
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12. Which the following is an example of natural resources?
(a) Water (b) Air (c) Minerals (d) All of these
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13. Which of the following is the main feature of sustainable development?
(a) Sustained rise in per capita income (b) No increase in pollution
(c) Rational use of natural resources (d) All of these
14. Industrial waste streaming into the rivers contributes to.
(a) Air pollution (b) Water pollution (c) Land pollution (d) Noise pollution
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15. China has performed better with regard to :
(a) Infant mortality (b) Nourishment
(c) Maternal mortality rate (d) All of these
16. The highest fertility rate is in.
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(a) India (b) Pakistan (c) China (d) Japan
17. In China commune system is related to.
(a) Agriculture (b) Services (c) Industry (d) None of these
18. _________ is the net amount available with firms for expansion.
(a) Profit
b
(b) Dividend
(c) Retained earnings
(a) The point at which consumption curve intersects the 45o line, APS is zero.
(d) Corporate tax
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(b) According to Keynes, the equilibrium level of income is always determined corresponding to full
employment level.
(c) If planned investment fall short of planned saving, then stock of goods tend to pile up.
(d) Multiplier process assumes the existence of excess capacity in the economy.
Statement–1 : Education system in India is not job-oriented.
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Statement–2 : Informal sector workers are highly vulnerable to uncertainties of the market.
Alternatives :
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terms in Column-I.
Column-I Column-II
A. Use of running water (i) Solar energy
B. Use of coal (ii) Nuclear power
C. Use of sunlight (iii) Hydro electricity
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D. Use of uranium (iv) Thermal power

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(a) A–(ii), B–(iv), C–(i), D–(iii) (b) A–(iv), B–(i), C–(ii), D–(iii)
(c) A–(i), B–(iii), C–(iv), D–(ii) (d) A–(iii), B–(iv), C–(i), D–(ii)

22. Environment Protection Act was introduced in the year ____________.
(a) 1980 (b) 1982 (c) 1986 (d) 1990
(a) China is ahead of India and Pakistan on many human development indicators. These improvements
s
were attributed to the reform process initiated in china in 1978.
(b) The fast industrial growth in China can be traced back to the reforms introduced in 1978.
on
(c) As per the Human Development Report, 2018, India was ranked at 180th position.
(d) India, after independence, relied largely on private sector to spearhead the process of growth and
development.
a ti
Statement–1 : The threat to India’s environmental problems pose a Dichotomy.
Statement–2 : Burning of stubble (parali) is one of the major cause of soil pollution.
Alternatives :
lic
terms in Column-I.
Column-I Column-II
A.
B.
Economic infrastructure
Social infrastructure
b (i)
(ii)
Health
Water
Pu
C. Renewable resource (iii) Petroleum
D. Non renewable resource (iv) Energy

(a) A–(ii), B–(iii), C–(i), D–(iv) (b) A–(iv), B–(i), C–(ii), D–(iii)
(c) A–(ii), B–(i), C–(iv), D–(ii) (d) A–(ii), B–(iii), C–(iv), D–(i)
26. Which one of the following statement is correct?
er
(a) Multiplier process assumes the existence of excess capacity in the economy.
(b) Excess demand generates greater employment opportunities in the economy.
(c) Value of marginal propensity to consume can be greater than one but less than infinity.
i
(d) APC can be defined as the fraction of change in income that is consumed.
em
27. What will be the value of multiplier if CRR is 10% :

(a) 5 times (b) 2 times (c) 10 times (d) 100 times
28. Borrowing in government budget is :
(a) Revenue deficit (b) Fiscal deficit (c) Primary deficit (d) Deficit in taxes
29. Which phase of demographic transition represents low birth rate and low death rate?
(a) First stage (b) Second stage (c) Third stage (d) Both (a) and (c)
Pr
30. Self-reliance means avoiding.

(a) Exports (b) Imports (c) Both (a) and (b) (d) None of the above
31. Which is not a tax reform?
©
(a) Devaluation of rupee (b) Reduction in taxes

(c) Reforms in indirect tax (d) Simplification of tax process

32. Transient poor includes :
(a) Usually poor (b) Always poor
(c) Never poor (d) Churning poor
33. Human capital considers education and health important :
s
(a) To increase labour productivity. (b) Mean for human welfare
(c) As every citizen has these rights (d) For becoming good citizen
on
34. Which of the following have emerged to fill the gap in the formal credit system of rural India?
(a) Regional rural banks (b) Cooperatives
(c) Land development banks (d) Self-help groups
35. Physical capital is :
a ti
(a) Tangible (b) Easily sold in the market
(c) (a) and (b) (d) None of the above
terms in Column-I.
Column-I Column-II
lic
A. A quantitative instrument of monetary supply (i) Deposit money
B. A qualitative instrument of monetary supply (ii) Bank of issuing currency
C. Central bank (iii) Repo rate
D.

b
Primary deposits + Secondary deposits (iv) Margin requirement
Pu
(a) A–(iv), B–(ii), C–(iii), D–(i) (b) A–(iii), B–(iv), C–(ii), D–(i)
(c) A–(iii), B–(i), C–(iv), D–(ii) (d) A–(i), B–(ii), C–(iii), D–(iv)
Statement–1 : Fiscal deficit refers to the excess of total expenditure over total receipts (excluding borrowings)
during the given fiscal year.
Statement–2 : It indicates the total borrowing requirements of the government.
er
Alternatives :
i

em

(a) Tata Airlines a division of Tata and Sons, was established in 1932.
(b) Muslin a type of cotton textile has its origin in Bengal.
(c) Opening of Suez Canal, reduced the cost of transportation and made access to the Indian market easier.
(d) During the colonial period, the service sector accounted for the largest share of workforce.
Pr
39. Expenditure on the job training is a source of human capital formation because ____________.
(a) Money is spent on it
(b) It cannot be avoided
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(c) It is part of corporate social responsibilty

(d) Labour productivity increases

terms in Column-I.
Column-I Column-II
s
A. NABARD (i) 1975
B. Operation flood (ii) 1969
on
C. RRBs (iii) 1982
D. Nationalisation of 14 major commercial banks (iv) 1970

(a) A–(iv), B–(iii), C–(ii), D–(i) (b) A–(iii), B–(iv), C–(i), D–(ii)
a ti
(c) A–(ii), B–(i), C–(iv), D–(iii) (d) A–(iv), B–(iii), C–(i), D–(ii)
of the passage :
lic
India’s foreign exchange reserves have jumped by $100 billion in 10 months to a record high of $534.5 billion.
The rise has been led by strong foreign fund inflows recently and decline in import bill due to dip in crude oil
prices and trade impact following COVID-19 pandemic. Reduced imports of gold also cut down India’s import
bill. The rise in foreign exchange inflows is mainly due to increase in Foreign Portfolio Investment (FPI) and
Foreign Direct Investment (FDI).
41. b
Import of Gold will be recorded in :
(a) Credit side of capital account (b) Debit side of Capital account
Pu
(c) Credit side of current account (d) Debit side of current account
42. Reduced imports of gold will lead to ____________.
(a) Currency appreciation (b) Currency depreciation
(c) No change in currency value (d) Both (b) and (c)
43. Import of crude oil is a ____________ Transaction.
(a) Autonomous (b) Accommodating (c) Below the line (d) Both (b) and (c)
er
44. Import of Gold will be classified under which economic transaction?

(a) Visible Item (b) Invisible Item (c) Unilateral transfer (d) Capital Transfer
45. Read the following statements carefully and choose the correct alternatives given below :
Statement–1 : Foreign Direct Investment (FDI will be recorded in Current Account
i
Statement–2 : FDI gives direct control to the purchaser over the asset
em
Alternatives :
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement 1 is true and Statement 2 is false
(d) Statement 2 is true and Statement 1 is false
Pr
©

Answer Key
1. (b) 2. (a) 3. (d) 4. (b) 5. (a) 6. (b) 7. (b) 8. (c) 9. (c) 10. (c)
11. (c) 12. (d) 13. (c) 14. (b) 15. (d) 16. (b) 17. (a) 18. (c) 19. (b) 20. (a)
s
21. (d) 22. (c) 23. (b) 24. (a) 25. (b) 26. (a) 27. (c) 28. (b) 29. (c) 30. (b)
31. (a) 32. (d) 33. (a) 34. (d) 35. (c) 36. (b) 37. (a) 38. (d) 39. (d) 40. (b)
on
41. (d) 42. (a) 43. (a) 44. (a) 45. (d)
a ti
b lic
Pu
i er
em
Pr
©

s
on
a ti
lic
1. The bank that operates without any profit motive in public interest is :
(a) Reserve Bank of India (b) Nationalised commercial Bank
(c) Canara Bank (d) Allahabad Bank
2. Which of the following tool is used by the government to reduce inequalities of Income and wealth?
(a) Increasing repo rate
(c) Reducing repo rate
b (b) Progressive tax
(d) Increasing margin requirement
Pu
3. Other things remaining the same, when in a country the market price of foreign currency rises,
national income is :
(a) Likely to rise (b) Likely to fall
(c) Likely to rise and fall both (d) Not affected
4. Railways were introduced in India in :
(a) 1947 (b) 1868 (c) 1850 (d) 1821
er
5. The concept of five year plan in India was introduced by :

(a) Jawaharlal Nehru (b) Indira Gandhi (c) Lal Bahadur Shastri (d) Lord Mountbatten
6. Transient poor consist of :
(a) Churning poor and occasionally poor (b) Always poor and usually poor
i
(c) Always poor and Churning poor (d) Usually poor and occasionally poor
em
7. Which is not related with human capital formation.

(a) Education (b) Health (c) Skill (d) Internet
8. Below mentioned are the major producers of the marine product except.
(a) Maharashtra (b) Kerala (c) Gujarat (d) Punjab
9. SHG stands for :
Pr
(a) Self human group (b) Sufficient humidity growth

(c) Self-help group (d) Self human growth
10. The stock of skill and expertise of nation at a point of time is called :
©
(a) Human capital (b) Human development

(c) Human capital formation (d) Physical capital

11. RBI directs commercial banks to follow ____________ money policy in case of deflation.
(a) Cheap (b) Dear (c) Neutral (d) None of these
terms in Column-I.
s
Column-I Column-II
on
A. Recovery of loans (i) Revenue expenditure
B. Repayment of loans (ii) Revenue receipt
C. Foreign donations (iii) Capital receipt
D. Pension paid to retired government employees (iv) Capital expenditure
a ti
(a) A–(ii), B–(i), C–(iii), D–(iv) (b) A–(iv), B–(iii), C–(iv), D–(i)
(c) A–(iii), B–(iv), C–(ii), D–(i) (d) A–(iv), B–(i), C–(iii), D–(ii)
lic
(a) Managed Floating Exchange Rate is decided by market forces but remains within a specific range as
decided by central bank.
(b) “Under a managed floating exchange rate system, the Government directly controls the exchange
rate”.
(c)
b
Depreciation of currency has same effect on exports as devaluation of currency.
(d) “Devaluation of currency is said to occur when the exchange rate is increased under the fixed exchange
rate system”.
Pu
Statement–1 : Indian agriculture experienced low productivity and production.
Statement–2 : The land holdings were scattered and divided into small pieces.
Alternatives :
er
15. Which of the following is not a ‘factor payment’?

(a) Free uniform to defence personnel (b) Salaries to the Members of Parliament
(c) Rent paid to the owner of a building (d) Scholarship given to the students
i
16. Identify a capital good from the following :

em
(a) Textbooks purchased by a student (b) Purchase of taxi by taxi owner

(c) Purchase of washing machine by household (d) Purchase of tubelights a factory
17. If in an economy, the value of Net Factor Income from Abroad is ` 200 crores and the value of Factor
Income to Abroad is ` 40 crores. Identify the value of Factor Income from Abroad.
(a) ` 200 crores (b) ` 160 crores (c) ` 240 crores (d) ` 180 crores
18. If Marginal Propensity to Save (MPS) is 0.25 and initial change in investment is ` 250 crores, then the
Pr
final change in income would be :

(a) ` 1,000 crores (b) ` 1,200 crores (c) ` 500 crores (d) ` 3,500 crores
19. The monetary policy generally targets to ensure:
©
(a) Price stability in the economy (b) Employment generation in the country
(c) Stable foreign relations (d) Greater tax collections for the government

20. To reduce credit availability in the economy, the Central Bank may :
(a) Buy securities in the open market (b) Sell securities in the open market
(c) Reduce reserve ratio (d) Reduce repo rate
s
21. Those who get any pension or gratuity benefits are known as :
(a) Self-employed workers (b) Regular workers
(c) Casual workers (d) Unemployment
on
22. According to the economic definition of employment includes :
(a) Work from home (b) Work in office and factories
(c) Engage in non-economics activities (d) Both (a) and (b)
23. Jobless growth leads to unemployment because:
a ti
(a) Labour refuses to migrate (b) Labour is very expensive
(c) GDP growth is slow (d) Growth is due to technology
24. From the following which is not a non-commercial source of energy :
(a) Solar energy (b) Wind energy (c) Tidal energy (d) Coal
25. Electricity generated from radioactive elements is called :
lic
(a) Thermal electricity (b) Atomic energy (c) Hydel electricity (d) Tidal energy
26. The highest use of commercial energy is :
(a) Agriculture (b) Transport (c) Household (d) Industry
(c) Use of thermal power

b
27. Which of the following is not used as a strategy for Sustainable Development ?
(a) Use of bio-gas (b) Use of solar power
(d) Use of hydel power
Pu
28. Which of the following is not a consequence of ozone layer depletion?
(a) Skin cancer in humans (b) Lower production of phytoplankton
(c) Heart problem in humans (d) All of the above
29. Under which of the following programme of China, students and professional were sent to work and
learn from the country side?
(a) Commune System (b) Great Leap Forward
er
(c) Great Proletarian Cultrual Revolution (d) Economic Reforms

30. Which sector of the economy contributes the highest to India’s GDP?
(a) Service (b) Agriculture (c) Industry (d) None of these
31. In which of the following indicators is Pakistan ahead of India and China?
i
(a) Urbanisation (b) Fertility rate (c) Density (d) Population

em
Statement-1 : Part of the output produced by a farmer and used for his own family consumption is not
included under product method.
Statement-2 : One of the ways to avoid double counting, is to take only value added instead of total
output
Alternatives :
Pr
©

(a) APC can be defined as the fraction of change in income that is consumed.

(b) Inventory is a stock variable.
(c) As per Keynesian theory in an economy, full employment can never exist.
(d) To reduce inflation, the Central Bank should reduce Cash Reserve Ratio (CRR).
34. The newly emerging jobs are found mostly in ___________ sector.
s
(a) Manufacturing (b) Primary (c) Service (d) All of these
on
terms in Column-I.
Column-I Column-II
A. Primary Health Centres (i) Specialised health care
B. Secondary Health Centres (ii) Limited medicines
a ti
C. Tertiary Sector (iii) Rural areas
D. Auxiliary Nursing Midwife (iv) ECG facility
lic
(a) A–(ii), B–(iv), C–(iii), D–(i) (b) A–(ii), B–(iv), C–(i), D–(iii)
(c) A–(iii), B–(iv), C–(ii), D–(i) (d) A–(iii), B–(ii), C–(i), D–(iv)
(a) Poverty leads to compulsive deforestation.
b
(b) Bromine compounds are also known as halons.
(c) Herman Daly defined sustainable development as one which is directly concerned with increasing the
material standard of living of the poor at the grass-root level.
Pu
(d) Improper planning and management of irrigation systems are one of the factors responsible for land
degradation.
37. Mao initiated the ‘Great Leap Forward’ in the year ___________.
(a) 1988 (b) 1990 (c) 1958 (d) 1900
Statement–1 : Induced investment refers to the investment which depends on the profit expectations and
er
is directly influenced by income level.

Statement–2 : Autonomous investment refers to the investment which is not affected by changes in the
level of income and is not induced solely by profit motive. It is income inelastic.
Alternatives :
i

em

terms in Column-I.
Column-I Column-II
Pr
A. Non-Economic activities (i) Activities which contribute to GDP

B. Economic Activities (ii) Those who are engaged in economic activities
©
C. Workers (iii) Activities which do not contribute to GDP

D. Hired workers (iv) Those who work for others

(a) A–(ii), B–(i), C–(iii), D–(iv) (b) A–(iii), B–(i), C–(iv), D–(ii)
(c) A–(iii), B–(i), C–(ii), D–(iv) (d) A–(iv), B–(ii), C–(i), D–(iii)
s
(a) HDI of India is higher as compared to china.
(b) India adopted a mixed economy model of growth.
on
(c) As a basic element of the strategy of growth in China, all the national resources were put under the
control and command of the governments.
(d) After independence, China decided to bring all critical area of production activity under government
control.
a ti
of the passage :
As finance minister Nirmala Sitharaman prepares to announce India’s union budget for fiscal 2021-22 on Feb.
1, experts believe she could tackle infinite issues facing the country’s economy by relentlessly focusing on
lic
solving just one problem: unemployment.
India’s unemployment rate climbed to a six-month high of 9.06% in December, according to Mumbai-
based think-tank Centre for Monitoring Indian Economy (CMIE). “The influx of people looking for work
swelled. But, labour markets were not ready for this six-million surge in labour. It thus left them largely
41. b
unemployed,” the CMIE report said. Official data on unemployment has not yet been released.
With high unemployment there will be _____________ in GDP.
(a) Increase (b) Decrease (c) Both (a) and (b) (d) Stagnant
Pu
Statement 1 : “Make in India” concept will reduce unemployment in India
Statement 2 : Skill Development Programmes will improve quality of employment.
Alternatives :
(a) Both the statements are true.
(b) Both the statements are false.
er
(c) Statement 1 is true and Statement 2 is false.

(d) Statement 2 is true and Statement 1 is false.
43. When in an economy, without generating employment we have been able to produce more goods and
services it means it is :
i
(a) Unemployment (b) Employment (c) Jobless growth (d) Labour growth
em
44. Finance minister Nirmala Sitharaman believes myriad issues faced by the country’s economy can be
solved by :
(a) Creating employment (b) Reducing unemployment
(c) Both (a) and (b) (d) None of the above
45. Work force refers to that part of :
Pr
(a) Labour force which is employed

(b) Population which is unemployed
(c) Population which is forced to work
©
(d) Labour force which is when employed

Answer Key
1. (a) 2. (b) 3. (a) 4. (c) 5. (a) 6. (a) 7. (d) 8. (d) 9. (c) 10. (a)
11. (a) 12. (c) 13. (b) 14. (a) 15. (d) 16. (b) 17. (c) 18. (a) 19. (a) 20. (b)
s
21. (b) 22. (d) 23. (d) 24. (d) 25. (b) 26. (d) 27. (c) 28. (c) 29. (a) 30. (b)
31. (b) 32. (d) 33. (b) 34. (c) 35. (c) 36. (c) 37. (c) 38. (a) 39. (c) 40. (a)
on
41. (b) 42. (a) 43. (c) 44. (c) 45. (a)
a ti
b lic
Pu
i er
em
Pr
©

s
on
a ti
lic
1. Which of the following is a transfer payment?
(a) Rent of the factory building
(b) Expenditure on medical case of employees
(c) Interest on borrowings by farms
2.
(d) Scholarship to poor students b
In the production of sugar, sugarcane is :
Pu
(a) A final good (b) A capital good
(c) An intermediate good (d) None of those
3. "Income of the family" is the example of which variable?
(a) Stock (b) Flow
(c) Both stock and flow (d) Neither stock nor flow
4. At zero level of income consumption is–
er
(a) Positive (b) Zero (c) Negative (d) Zero or negative

5. Which of the following is correct.
(a) MPC + MPS = 1 (b) MPS + MPC = 0 (c) MPC + MPS > 1 (d) MPC – MPS = 1
6. If MPC is greater than MPS the value of multiplies is–
i
(a) Greater than 2 (b) Equal to 2 (c) Equal to 5 (d) Less than 2
em
7. In which of the following type of unemployment, is the marginal productivity of the worker zero?
(a) Structural Unemployment (b) Involuntary Unemployment
(c) Seasonal Unemployment (d) Disguised Unemployment
8. Workers hired on permanent basis and also get social security benefits are called:
(a) Regular salaried workers/employees (b) Casual workers
Pr
(c) Self-employed workers (d) None of these

9. A situation in which growth rate of GDP in the economy is not accompanied by a commensurate
growth and employment opportunities is called:
©
(a) Economic growth (b) Useless growth

(c) Economic development (d) Jobless growth

10. Which of the following is a challenge in Power Generation sector?
(a) Inadequate generation (b) Losses of electricity boards
(c) Less capacity utilisation (d) All of these
11. Which sector in India is the largest consumer of commercial energy?
s
(a) Household (b) Agriculture (c) Industry (d) Transport
12. When was the environment (Protection) Act passed?
on
(a) 1990 (b) 1988 (c) 1986 (d) 1984
13. In 1997, a UN conference on climate change was held in
(a) India (b) Japan (c) China (d) Germany
a ti
terms in Column-I.
Column-I Column-II
A. Goods sold to final users (i) Consumer good
B. Machine purchased by a firm (ii) Intermediate good
lic
C. Goods within production boundary (iii) Capital good
D. Furniture purchased by household (iv) Final good

(a) A–(iv), B–(ii), C–(iii), D–(i)
(c) A–(iii), B–(i), C–(iv), D–(ii)
b (b) A–(iv), B–(iii), C–(ii), D–(i)
(d) A–(i), B–(ii), C–(iii), D–(iv)
Pu
15. If the value of MPS = 0.25, then the value of multiplier ___________.
(a) 4 (b) 5 (c) 3 (d) 2.5
16. Which of the following is incorrect?
(a) Distribution of work force across primary, secondary and tertiary sector is called output distribution.
(b) The newly emerging jobs are found mostly in the service sector.
(c) Compare to urban women more rural women are found working.
er
(d) High priority for education implies low priority for jobs at an early age.
Statement–1 : Improvement in Infrastructure doesn't cause any improvement in economic development of
the country.
i
Statement–2 : Infrastructure raises productivity, induces investment, facilitates employment and is a generator
em
of more income.
Alternatives :
Pr
18. CPCB was set up in ____________.

(a) 1954 (b) 1964 (c) 1974 (d) 1984
©
terms in Column-I.

Column-I Column-II
A. First five Year Plan in India (i) 1949
B. First five Year Plan in Pakistan (ii) 1956
s
C. First five Year Plan in China (iii) 1951
D. China became independent in (iv) 1953
on
(a) A–(ii), B–(iii), C–(i), D–(iv) (b) A–(iii), B–(ii), C–(iv), D–(i)
(c) A–(i), B–(iv), C–(iii), D–(ii) (d) A–(ii), B–(i), C–(iv), D–(iii)
20. Which of the following is correct?
a ti
(a) Under disguised type of unemployment, marginal product gained by employing one additional unit
of labour is zero.
(b) If a construction site manager hires two workers on daily wages basis, such a situation is covered
under formal sector.
lic
(c) Greater proportion of women workers are found in urban areas as a component of Indian work force.
(d) In the past few decades primary sector has created maximum jobs opportunities in India.
21. ___________ is an example of social infrastructure:
(a) Transport (b) Communication (c) Energy (d) Health
b
22. Statement–1 : Carrying Capacity means the ability to sustain up to a certain limit or scope.
Statement–2 : Absorptive capacity means the ability of the environment to absorb degradation.
Alternatives :
Pu
23. The savings function of an economy is given as S = –100 + 0.4 Y, the value of autonomous consumption
is ___________.
(a) –100 (b) +100 (c) 2.5 (d) 400
24. Find the odd one out among the following :
er
(a) IDBI Bank (b) Bank of England

(c) Federal Reserve Bank of the USA (d) Reserve Bank of India
25. Government budget shows estimated expenditure of local government in term of.
(a) Consumption expenditure (b) Investment expenditure
i
(c) Transfer payment (d) All of these

em
26. Who out of the following is not included in “Residents” BOP transactions?
(a) Firms (b) Govt. agencies
(c) Foreign military personnel (d) individuals
27. The opening of Suez Canal served as a direct route for ships operating between :
(a) India and America (b) India and Britain
Pr
(c) India and Sri Lanka (d) India and Pakistan

28. Which of the following is not a goal of five year plan.
(a) Growth (b) Equity (c) Land Reform (d) Modernisation
©
29. Rate of which tax was reduced as per the tax reform :
(a) Gift tax (b) Corporation tax (c) Income tax (d) Both (b) and (c)

30. In India, absolute poverty is measured with reference to :
(a) Poverty Line (b) GDP (c) Per Capita Income (d) Unemployment
31. By 2030-2032 INDIA will be the third largest economy due to its :
s
(a) Vast natural resources (b) Knowledge resources
(c) Vast physical Capital (d) Vast physical capital and natural resources
32. The buffer stocks of wheat in India are maintained by :
on
(a) Food Corporation of India (b) Public Distribution System
(c) Food Council of India (d) Food Ministry of India
33. Foreign exchange transactions dependent on other foreign exchange transactions are called :
(a) Current account transaction (b) Capital account transactions
a ti
(c) Autonomous transactions (d) Accommodating transactions
34. The railways affected the structure of the Indian economy in :
(a) Commercialization of crops
(b) Indian village becomes self-sufficient.
(c) Broken the geographical and cultural barriers
lic
(d) Both (a) and (c)
terms in Column-I.
A.
Column-I
b
National Food for Work Programme (i) 2000
Column-II
Pu
B. Antyodaya Anna Yojana (ii) 2013
C. National Food Security Act (iii) 1995
D. Mid-day Meal Scheme (iv) 2004

(a) A-(iii), B-(ii), C-(i), D-(iv) (b) A-(iv), B-(ii), C-(iii), D-(i)
er
(c) A-(iv), B-(i), C-(ii), D-(iii) (d) A-(ii), B-(iv), C-(i), D-(iii)
(a) Stabilisation measures are short-term measures.
(b) To meet the foreign exchange crisis, the Indian government demonetised the Indian rupee in 1991.
i
(c) Reforms have benefited the agriculture sector. There has been increase in public investment in this
em
sector.
(d) “GATT was established in 1923 with 48 member countries.”
37. ____________ implies use of advanced technology.
(a) Modernisation (b) Globalisation (c) Privatisation (d) Planning
Statement-1 : Current account of Balance of Payments account records only exports and imports of goods
Pr
and services.
Statement-2 : Foreign investments are recorded in the capital account of balance of payments.
Alternatives :
©

(a) Agriculture sector of India was backward before independence because farmers were forced to grow
wheat in their fields.
(b) Zamindari system was introduced by Cornwallis under the British colonial rule, the agricultural
s
production decreased.
(c) There was no positive impact in India during British rule.
on
(d) On the eve of Independence, India was not an exporter of agricultural goods.
40. What implications does resource scarcity have for the satisfaction of wants?
(a) Not all wants can be satisfied.
(b) We will never be faced with the need to make choices.
(c) We must develop ways to decrease our individual wants.
a ti
(d) The discovery of new natural resources is necessary to increase our ability to satisfy wants.
of the passage :
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To try and understand the developmental processes pursued by their neighbouring nations, nations are forming
regional and global economic groupings and also for strengthening of their own domestic economies like
SAARC. India and Pakistan were forced to start their reform process as forced by IMF and World Bank. Economic
Planning was the common features in India, China and Pakistan between 1950-1990. India and Pakistan had
b
almost same process of growth giving dominant role to the public sector. After developing their agriculture
sector they gave more stress to tertiary sector whereas China adopted the path of development like the developed
nations of the world with commune system in the beginning followed by industrilisation
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46. Commune System in China is related to :
(a) Industries (b) Trade (c) Agriculture (d) Tertiary Sector
Statement–1 : Reforms were introduced in China and Pakistan earlier than India.
Statement–2 : Reforms took place in India after China and Pakistan.
Alternatives :
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(a) Both the statements are true. (b) Both the statements are false.
(c) Statement-1 is true and Statement-2 is false. (d) Statement-2 is true and Statement-1 is false.
48. Mao initiated the ‘Great Leap Forward’ in the year __________. (CBSE 2020)
(a) 1988 (b) 1990 (c) 1958 (d) 1900
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49. Great Leap Forward (GLF) campaign :

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(a) Aimed at trading on a massive scale

(b) Aimed at agriculture on a massive scale
(c) Aimed at industrialising the country on a massive scale
(d) None of the above.
(a) India, Pakistan and China have many similarities in their development strategies.
Pr
(b) Till 1980, all the three countries had similar growth rates and per capita incomes.
(c) China announced its first five year plan in 1958.
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(d) China did not have any compulsion to introduce reforms as dictated by the World Bank and
International Monetary Fund to India and Pakistan.

Answer Key
1. (d) 2. (c) 3. (b) 4. (a) 5. (a) 6. (a) 7. (d) 8. (a) 9. (d) 10. (d)
11. (c) 12. (c) 13. (b) 14. (b) 15. (a) 16. (a) 17. (d) 18. (c) 19. (b) 20. (a)
s
21. (d) 22. (a) 23. (b) 24. (a) 25. (d) 26. (c) 27. (b) 28. (c) 29. (d) 30. (a)
31. (b) 32. (a) 33. (d) 34. (d) 35. (c) 36. (a) 37. (a) 38. (d) 39. (b) 40. (a)
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41. (c) 42. (c) 43. (c) 44. (c) 45. (c)
Practice Questions
a ti
1. Further slowdown of rural development phenomenon can be seen from the :
(a) Growing distress witnessed among farmers across different parts of India.
(b) One-fourth of rural India still lives in abject poverty
(c) Massive unemployment in rural areas
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(d) All of the above
2. Bank rate for controlling credit is applicable in the :
(a) Long run (b) Short run (c) Very short run (d) Medium run
3. In which time period was “Golden Revolution” Started?
4.
(a) 1990–2002
Micro Economics is the study of :
b
(b) 1991–2003 (c) 1992–2004 (d) 1993–2005
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(a) Individual parts of the economy (b) The economy as a whole
(c) Choice making (d) Development of the economy
(a) The rate of regeneration of the resource in the environment is zero.
(b) Methane gas is released in animal waste, is one of the factors contributing to global warming.
(c) The economic development is not resoponsible for environment pollution.
(d) Sustainable development is the development that meets the need of present generation only.
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6. The ability of the environment to absorb degradation is :

(a) Carrying capacity (b) Absorptive capacity (c) (a) and (b) (d) None of the above
7. Which of the following countries has shown the brighter sign of urbanization.
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(a) China (b) India (c) Both (a) and (d) (d) Pakistan
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8. Which of the following countries has the least urbanised population.

(a) Pakistan (b) India (c) China (d) None of these
9. India relied on :
(a) Inward looking strategy (b) Public sector
(c) Both (a) and (b) (d) None of these
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Statement–1 : Global warming is caused by a rise in the level of Green-house gases.

Statement–2 : A decrease in the temperature of earth’s atmosphere and oceans is termed as Global warming.
Alternatives :
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11. ‘Economics is the science of choice making’. It implies:
(a) No choice is to be made (b) Choice to be made between alternative uses
(c) Choice to be made between means and ends (d) None of the above
s
12. Economics is the study of :
(a) How society manages its unlimited resources (b) How to reduce our wants until we are satisfied
(c) How society manages its scarce resources (d) How to fully satisfy our unlimited wants.
on
13. In Economics, we use the term scarcity to mean:
(a) Absolute scarcity and lack of resources in less developed countries.
(b) Relative scarcity i.e. scarcity in relation to the wants of the society.
(c) Scarcity during times of business failure and natural calamities.
a ti
(d) Scarcity caused on account of excessive consumption by the rich.
14. Which of the following is not the characteristic of wants of human beings?
(a) Wants are unlimited
(b) Wants are subjective & relative
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(c) Wants are affected by income, taste, fashion, advertisements and social customs
(d) Wants do not vary with time, place & person.
15. The correct Equation is–
MU x Px MU x Px MU x Px MU x Py
= > < =
(a) MU y Py (b)
16. Micro Economics is concerned with:

b
MU y Py (c) MU y Py (d) MUy Px
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(a) Consumer Behaviour (b) Product pricing
(c) Factor Pricing (d) All of the above
17. Which of the following is a part of the subject matter of macro economics?
(a) Study of firms (b) Aggregate profits of a firm
(c) Market demand for a product (d) Net national product
18. An example of ‘positive’ economic analysis would be:
(a) An analysis of the relationship between the price of food and the quantity purchased.
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(b) Determining how much income each person should be guaranteed.

(c) Determining the ‘fair’ price for food.
(d) Deciding how to distribute the output of the economy.
i
19. Which of the following is not an assumption of Marginal Utility Analysis?

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(a) Rationality
(b) Cardinal Measurability of Utility
(c) Hypothesis of independent utility
(d) Increasing Marginal Utility of Money.
20. In case of wheat and Common salt, the nature of Price elasticity of demand is ________.
(a) Elastic (b) Inelastic (c) Perfectly Elastic (d) None of the above.
Pr
21. Which of the following would be considered a topic of study in Macro-economics?

(a) The effect of increase in wages on the profitability of cotton industry
(b) The effect on steel prices when more steel is imported
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(c) The effect of an increasing inflation rate on living standards of people in India
(d) The effect of an increase in the price of coffee on the quantity of tea consumed

22. All of the following are determinants of demand except :
(a) Tastes and preferences. (b) Quantity supplied.
(c) Income of the consumer. (d) Price of related goods.
23. Conspicuous goods are also known as:
s
(a) Prestige goods. (b) Snob goods. (c) Veblen goods. (d) All of the above.
24. For what type of goods does demand fall with a rise in income levels of households?
on
(a) Inferior goods (b) Substitutes (c) Luxuries (d) Necessities
25. Positive science only explains __________.
(a) What is? (b) What ought to be?
(c) What is right or wrong (d) None of the above
a ti
Answer Key
1. (d) 2. (a) 3. (b) 4. (a) 5. (b) 6. (b) 7. (a) 8. (b) 9. (c) 10. (c)
11. (b) 12. (c) 13. (b) 14. (d) 15. (a) 16. (d) 17. (d) 18. (a) 19. (d) 20. (b)
21. (c) 22. (b) 23. (d) 24. (a) 25. (a)
For more details on

b
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Pu
|Financial Literacy|Stock Market|
Contact :
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Dr Shunil Tripathi
Career Coach and Financial Mentor
i
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Founder Lead School Edutri

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Pr
www.edutriindia.com
©

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As per NTA Syllabus and Guidelines for Common Universities Entrance Test (CUET)

(a) Nationals (b) Economic territory

7. Which of the following is the consumption sector.

(a) Households (b) Firms (c) Foreign (d) Government

10. Which one is not the component of aggregate supply?

(a) Regular workers (b) Self employed workers

Premier CUET Economics Sample Question Paper–1 1

Choose the correct alternatives :

2 Sample Question Paper–1 Premier CUET Economics

Choose the correct alternative :

27. Economic development includes :

31. The non-tax revenue in the followings is :

Premier CUET Economics Sample Question Paper–1 3

Choose the correct alternative :

4 Sample Question Paper–1 Premier CUET Economics

B. Reason for excess demand (ii) AD > AS at full employment

Choose the correct alternative :

45. When planned saving is less than planned investment then :

(c) No change in inventories

Premier CUET Economics Sample Question Paper–1 5

6 Sample Question Paper–1 Premier CUET Economics

(b) General price level

(a) A decline in the market price

(b) An increase in income

6. Which of the following is not a component of balance of payment?

century was less than.

Premier CUET Economics Sample Question Paper–2 7

D. Diamond (iv) Conspicuous good

Choose the correct alternative :

16. Repo rate relates to ____________.

8 Sample Question Paper–2 Premier CUET Economics

Choose the correct alternative :

reward for their service.

(c) Statement-1 is true and Statement-2 is false

(d) Statement-2 is true and Statement-1 is false

(a) Radio (b) Clothes (c) Milk (d) Petrol

26. AD schedule shows the relationship between

Premier CUET Economics Sample Question Paper–2 9

Choose the correct alternatives :

(b) A–(ii), B–(i), C–(iii), D–(iv)

(a) There are six-recognised systems of Indian medicine.

(d) Infrastructure induces investment.

1 0 Sample Question Paper–2 Premier CUET Economics

41. Fiscal deficit equals :

(ii) Rise in government budget

43. Fiscal deficit is financed through :

Premier CUET Economics Sample Question Paper–2 1 1

1 2 Sample Question Paper–2 Premier CUET Economics

(c) Increase in repo rate

7. Unemployment refers to people.

(a) Open unemployment (b) Disguised unemployment

(a) Economic backwardness (b) Social backwardness

Premier CUET Economics Sample Question Paper–3 1 3

D. Use of uranium (iv) Thermal power

Choose the correct alternatives :

1 4 Sample Question Paper–3 Premier CUET Economics

Choose the correct alternatives :

27. What will be the value of multiplier if CRR is 10% :

30. Self-reliance means avoiding.

(a) Devaluation of rupee (b) Reduction in taxes

Premier CUET Economics Sample Question Paper–3 1 5

Choose the correct alternative :

(d) Statement-2 is true and Statement-1 is false

38. Which one of the following statement is incorrect?