CUET 2026 May 12 Shift 1 Economics Question Paper- Download Answer Key and Solution PDF

CUET 2026 May 12 Shift 1 Economics Question Paper is available for download here. NTA conducted the CUET UG 2026 exam from 11th May to 31st May.

CUET 2026 Economics exam consists of 50 questions for 250 marks to be attempted in 60 minutes.
As per the marking scheme, 5 marks are awarded for each correct answer, and 1 mark is deducted for incorrect answer.

Candidates can download CUET 2026 May 12 Shift 1 Economics Question Paper with Answer Key and Solution PDF from links provided below.

CUET 2026 Economics May 12 Shift 1 Question Paper with Solution PDF

CUET May 12 Economics Question Paper 2026	Download PDF	Check Solutions

Question 1:

Consider the following steps taken by the Reserve Bank of India with respect to money supply and arrange them in the correct sequence:

A. Increase in lending rates by commercial banks

B. Contraction in credit

C. Increase in bank rate by the Reserve Bank of India

D. Increase in cost of borrowings for commercial banks

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

View Solution

Question 2:

Arrange the following statements in the correct chronological sequence regarding the impact of government intervention in the form of price control in the market:

A. There will be excess demand for sugar at that price

B. Government imposes an upper limit on the price of sugar

C. Sugar is distributed to everyone through a system of rationing

D. This may lead to a shortage of sugar in the market

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

View Solution

Question 3:

It may be incorrect to treat GDP as an index of a country's welfare for the following reasons:

A. Externalities

B. Distribution of GDP is not uniform

C. Monetary exchanges

D. Non-monetary exchanges

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

View Solution

Question 4:

The ratio of the total increase in equilibrium value of final goods output to the initial increase in autonomous investment expenditure is known as:

(A) Investment Multiplier
(B) Autonomous Multiplier
(C) Credit Multiplier
(D) Induced Multiplier

View Solution

Question 5:

In the Balance of Payments, transactions involving bonds and equity shares are recorded under which of the following accounts?

(A) Trading Account
(B) Financial Account
(C) Current Account
(D) Errors and Omissions

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Question 6:

Consider the following statements about Adam Smith and his economic philosophy:

A. Adam Smith's concept of the ``invisible hand'' implies that individuals pursuing their self-interest contribute to societal well-being.

B. Smith argued that government intervention is essential in regulating markets for economic efficiency.

C. The wealth of a nation is determined by the productivity and efficiency of its labour force.

D. Modern economists have built upon Smith's ideas but have also recognized the need for macroeconomic policies.

Choose the correct answer from the options given below:

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

View Solution

Question 7:

Which of the following is an example of a consumer good?

(A) A machine used in a factory
(B) A taxi purchased by a company for commercial use
(C) A refrigerator bought for home use
(D) A building purchased by a firm for office space

View Solution

Question 8:

The flow of goods and services along with factors of production across different sectors in a barter economy is known as:

(A) Circular Flow
(B) Real Flow
(C) Monetary Flow
(D) Capital Flow

View Solution

Question 9:

When demand shifts rightward and supply shifts leftward, which of the following outcomes is certain?

A. Equilibrium quantity will increase

B. Equilibrium price will increase

C. Equilibrium quantity may increase, decrease, or remain unchanged

D. Equilibrium price may increase, decrease, or remain unchanged

(A) A and B only
(B) B and C only
(C) A and D only
(D) B only

View Solution

Question 10:

Which of the following are characteristics of a perfectly competitive market?

A. There is perfect information in the market.

B. The market price is determined by the collective interaction of supply and demand.

C. Each firm has significant market power to influence prices.

D. Firms in a perfectly competitive market earn normal profit in the long run.

Choose the correct answer:

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

View Solution

CUET UG 2026 Exam Pattern

Parameter	Details
Exam Name	Common University Entrance Test (CUET UG) 2026
Conducting Body	National Testing Agency (NTA)
Exam Mode	Computer-Based Test (CBT)
Exam Duration	60 minutes per test
Total Sections	3 (Languages, Domain Subjects, General Test)
Question Type	Multiple Choice Questions (MCQs)
Questions per Test	50 questions (all compulsory)
Marking Scheme	+5 for correct, -1 for incorrect
Maximum Marks	250 marks per test
Maximum Subject Choices	5 subjects in total
Syllabus Base	Class 12 NCERT (mainly for Domain Subjects)

CUET UG 2026 Exam Analysis

CUET Questions

1.
Which of the following is a capital receipt in the government budget?

Tax revenue
Interest received on loans
Disinvestment
Dividends from public sector undertakings

View Solution

2.
An import of goods is recorded in the Balance of Payments account as:

A credit entry
A debit entry
A transfer payment
None of the above

View Solution

3.
Which of the following is included in the estimation of National Income?

Transfer payments
Sale of second-hand goods
Imputed rent of self-occupied house
Windfall gains like lottery winnings

View Solution

4.
Which of the following is a quantitative instrument of credit control by the Central Bank?

Moral suasion
Margin requirements
Open Market Operations (OMO)
Rationing of credit

View Solution

5.
A consumer spends his entire income on goods \(X\) and \(Y\). The price of \(X\) is \(₹20\) per unit and the price of \(Y\) is \(₹10\) per unit. If his income is \(₹400\), which of the following combinations lies on his budget line?

\(X=5,\;Y=25\)
\(X=10,\;Y=20\)
\(X=15,\;Y=5\)
\(X=8,\;Y=18\)

View Solution

6.
In an economy, Autonomous Consumption is \(100\) crore and the Marginal Propensity to Consume (MPC) is \(0.75\). If investment increases by \(80\) crore, then the increase in equilibrium income will be:

\(240\) crore
\(300\) crore
\(320\) crore
\(400\) crore

View Solution

CUET 2026 May 12 Shift 1 Economics Question Paper- Download Answer Key and Solution PDF

CUET 2026 Economics May 12 Shift 1 Question Paper with Solution PDF

CUET UG 2026 Exam Pattern

CUET UG 2026 Exam Analysis

CUET Questions

1.
Which of the following is a capital receipt in the government budget?

2.
An import of goods is recorded in the Balance of Payments account as:

3.
Which of the following is included in the estimation of National Income?

4.
Which of the following is a quantitative instrument of credit control by the Central Bank?

5.
A consumer spends his entire income on goods \(X\) and \(Y\). The price of \(X\) is \(₹20\) per unit and the price of \(Y\) is \(₹10\) per unit. If his income is \(₹400\), which of the following combinations lies on his budget line?

6.
In an economy, Autonomous Consumption is \(100\) crore and the Marginal Propensity to Consume (MPC) is \(0.75\). If investment increases by \(80\) crore, then the increase in equilibrium income will be:

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CUET 2026 Economics May 12 Shift 1 Question Paper with Solution PDF

CUET UG 2026 Exam Pattern

CUET UG 2026 Exam Analysis

CUET Questions

1.Which of the following is a capital receipt in the government budget?

2.An import of goods is recorded in the Balance of Payments account as:

3.Which of the following is included in the estimation of National Income?

4.Which of the following is a quantitative instrument of credit control by the Central Bank?

5.A consumer spends his entire income on goods \(X\) and \(Y\). The price of \(X\) is \(₹20\) per unit and the price of \(Y\) is \(₹10\) per unit. If his income is \(₹400\), which of the following combinations lies on his budget line?

6.In an economy, Autonomous Consumption is \(100\) crore and the Marginal Propensity to Consume (MPC) is \(0.75\). If investment increases by \(80\) crore, then the increase in equilibrium income will be:

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1.
Which of the following is a capital receipt in the government budget?

2.
An import of goods is recorded in the Balance of Payments account as:

3.
Which of the following is included in the estimation of National Income?

4.
Which of the following is a quantitative instrument of credit control by the Central Bank?

5.
A consumer spends his entire income on goods \(X\) and \(Y\). The price of \(X\) is \(₹20\) per unit and the price of \(Y\) is \(₹10\) per unit. If his income is \(₹400\), which of the following combinations lies on his budget line?

6.
In an economy, Autonomous Consumption is \(100\) crore and the Marginal Propensity to Consume (MPC) is \(0.75\). If investment increases by \(80\) crore, then the increase in equilibrium income will be: