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CUET Economics Question Paper 2024 Set A (Available)- Download Solutions and Answer Key pdf
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Amrit Raj

| Updated On - Nov 21, 2024

CUET Economics Question Paper 2024 (Set A) is available here. NTA conducted CUET 2024 Economics paper on 16 May in Shift 1A from 10 AM to 11 AM. CUET Economics Question Paper 2024 is based on objective-type questions (MCQs). Candidates get 60 minutes to solve 40 MCQs out of 50 in CUET 2024 question paper for Economics.

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CUET Economics Question Paper with Solution

Q.No Question Answer Explanation
1 depicts what has actually happened.
Options:
(1) Ex-Ante
(2) Ex-Post
(3) Constant
(4) Variable
(2) Ex-Post Ex-post refers to analyzing something after the fact, based on actual outcomes, while Ex-Ante refers to predictions made beforehand.
2 If the value of Investment Multiplier is 5 and the increased income is 800 crore in an economy, find the value of change in investment.
Options:
(1) 4000 crore
(2) 120 crore
(3) 400 crore
(4) 160 crore
(3) 400 crore The investment multiplier (K) formula: K = ∆Y / ∆I. Rearranging: ∆I = ∆Y / K = 800 / 5 = 400 crore.
3 Which statements are true?
(A) Quantitative tools control money supply by changing CRR.
(B) Two types of open market operations – outright and upright.
(C) A fall in the bank rate can decrease money supply.
(D) Selling a bond by RBI reduces quantity of reserves.
(E) RBI influences money supply by changing loan rates to banks.
Options:
(1) (A), (C), and (D) only
(2) (A), (B), and (D) only
(3) (B), (D), and (E) only
(4) (A), (D), and (E) only
(4) (A), (D), and (E) only CRR and RBI lending rates are tools for money supply control; selling bonds decreases reserves, while “upright” operations don’t exist.
4 Paradox of Thrift means:
Options:
(1) Increased savings leads to lower or unchanged total investment.
(2) Increased spending lowers total savings.
(3) Decreased savings leads to lower or unchanged total investment.
(4) Increased savings lowers or maintains total savings.
(4) Increased savings lowers or maintains total savings Increased saving reduces aggregate demand and economic growth, potentially lowering total savings as income falls.
5 Match List-I with List-II:
List-I | List-II
(A) Bank Rate | (I) Securities pledged for repurchase
(B) Marginal Standing Facility | (II) Minimum long-term fund rate
(C) Repo Rate | (III) Penal Interest Rate
(D) Reverse Repo Rate | (IV) Central Bank borrows funds
Options:
(1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(2) (A) - (II), (B) - (III), (C) - (I), (D) - (IV)
(3) (A) - (III), (B) - (II), (C) - (IV), (D) - (I)
(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II) Bank Rate is penal, Marginal Standing Facility involves borrowing, Repo is for repurchasing securities, and Reverse Repo for long-term funding.
6 Which of the following is NOT a function of Central Bank?
Options:
(1) Controls money supply
(2) Banker to government
(3) Accepts deposits and gives loans to people
(4) Issues currency
(3) Accepts deposits and gives loans to people The Central Bank does not lend to individuals; it manages monetary policy and serves as a banker to the government.
7 Article 112 deals with:
Options:
(1) Consolidated Fund of India
(2) Public Account
(3) Union Budget
(4) Contingency Fund
(3) Union Budget Article 112 specifies the presentation of the Union Budget, detailing the annual financial statement of India.
8 Elements that create liability and decrease government assets are:
Options:
(1) Capital Receipts
(2) Capital Payments
(3) Revenue Receipts
(4) Revenue Payments
(1) Capital Receipts Capital receipts involve borrowing or asset sales, which increase liabilities or reduce assets.
9 Arrange elements chronologically (earliest to latest):
(A) Smithsonian Agreement
(B) Bretton Woods Conference
(C) WTO Establishment
(D) Gold Standard
Options:
(1) (A), (B), (C), (D)
(2) (D), (B), (A), (C)
(3) (D), (A), (B), (C)
(4) (C), (B), (D), (A)
(2) (D), (B), (A), (C) The Gold Standard predates the Bretton Woods Conference, Smithsonian Agreement, and WTO establishment.
10 Under flexible exchange rate, when the price of domestic currency in terms of foreign currency increases, it is called:
Options:
(1) Depreciation
(2) Appreciation
(3) Devaluation
(4) Revaluation
(2) Appreciation Appreciation occurs when the domestic currency value rises, allowing more foreign currency to be purchased.
11 Match List-I with List-II:
List-I | List-II
(A) Pegged exchange rate system | (II) Fixed exchange rate system
(B) Managed floating | (III) Dirty floating
(C) Bretton Woods Conference | (I) Setting up of IMF and World Bank
(D) Third element in BOP | (IV) Error and Omission Account
Options:
(1) (A) - (II), (B) - (I), (C) - (III), (D) - (IV)
(2) (A) - (II), (B) - (III), (C) - (I), (D) - (IV)
(3) (A) - (I), (B) - (III), (C) - (IV), (D) - (II)
(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
(2) (A) - (II), (B) - (III), (C) - (I), (D) - (IV) Fixed exchange rate refers to the pegged system; managed floating is also called dirty floating. Bretton Woods established IMF, and Error and Omission is a BOP element.
12 Casualization of workforce would result in:
Options:
(1) Decrease in workforce vulnerability
(2) Increase in workforce vulnerability
(3) Increase in regular workers
(4) Income and employment stability
(2) Increase in workforce vulnerability Casualization leads to temporary and insecure jobs, increasing the workforce's vulnerability to job loss and lack of benefits.
13 Arrange chronologically in ascending order:
(A) Establishment of NABARD
(B) FRBMA
(C) Third Five Year Plan
(D) Nationalization of RBI
Options:
(1) (A), (B), (C), (D)
(2) (A), (C), (B), (D)
(3) (D), (A), (B), (C)
(4) (D), (C), (A), (B)
(4) (D), (C), (A), (B) The chronological order: Nationalization of RBI (1949), Third Five Year Plan (1961), NABARD (1982), FRBMA (2003).
14 implies resource extraction not exceeding regeneration rate and waste within environment's capacity.
Options:
(1) Absorptive capacity
(2) Carrying capacity
(3) Subsistence capacity
(4) Exhaustive capacity
(2) Carrying capacity Carrying capacity ensures resources can regenerate and waste remains within the environment’s absorption limit.
15 India's Right to Education Act 2009 makes free education a Fundamental Right for ages:
Options:
(1) 4–10
(2) 6–12
(3) 6–14
(4) 8–15
(3) 6–14 The Right to Education Act mandates free and compulsory education for children aged 6 to 14 under Article 21A.
16 Arrange electricity generation sources by total capacity (higher to lower):
(A) Nuclear
(B) Thermal
(C) New and Renewable Energy
(D) Hydro
Options:
(1) (A), (B), (C), (D)
(2) (A), (C), (B), (D)
(3) (B), (C), (D), (A)
(4) (B), (D), (C), (A)
(4) (B), (D), (C), (A) Thermal power leads, followed by hydro, renewable energy, and then nuclear energy in India’s generation capacity.
17 Arrange items in correct sequence:
(A) Competition Act
(B) FEMA
(C) FERA
(D) MRTP
Options:
(1) (A), (B), (C), (D)
(2) (A), (C), (B), (D)
(3) (D), (C), (B), (A)
(4) (C), (B), (D), (A)
(3) (D), (C), (B), (A) The order: MRTP Act (1969), FERA (1973), FEMA (1999), Competition Act (2002).
18 The Great Leap Forward (GLF) campaign was initiated in:
Options:
(1) 1948
(2) 1938
(3) 1958
(4) 1942
(3) 1958 The Great Leap Forward was launched in 1958 by the Chinese Communist Party for rapid industrialization and collectivization.
19 Match List-I with List-II:
List-I | List-II
(A) Great Leap Forward | (II) Aimed at industrializing the country
(B) Mao Zedong | (III) Introduced the Cultural Revolution
(C) Brundtland Commission | (IV) Seminal report on sustainable development
(D) Our Common Future | (I) Protecting the future generation
Options:
(1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(2) (A) - (III), (B) - (II), (C) - (I), (D) - (IV)
(3) (A) - (II), (B) - (III), (C) - (IV), (D) - (I)
(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
(3) (A) - (II), (B) - (III), (C) - (IV), (D) - (I) The Great Leap Forward aimed at industrialization; Mao Zedong initiated the Cultural Revolution; Brundtland Commission's "Our Common Future" emphasized sustainable development.
20 Second phase of Green Revolution is termed from:
Options:
(1) mid 1960s to mid 1970s
(2) mid 1970s to mid 1980s
(3) mid 1950s to mid 1960s
(4) mid 1980s to mid 1990s
(2) mid 1970s to mid 1980s The second phase of the Green Revolution in India started in the mid-1970s and focused on other crops beyond the initial wheat and rice.
21 During the 1980s, Pakistan’s growth rate improved due to:
Options:
(1) Institutionalized process of technical change
(2) A good harvest
(3) Sustainable export of manufactured goods
(4) High foreign direct investment inflow
(2) A good harvest Pakistan’s economic growth in the 1980s was primarily driven by a series of successful harvests, boosting agricultural productivity.
22 When there is an unexpected rise in sales:
Options:
(1) Aggregate demand declines
(2) Unplanned accumulation of inventories
(3) Unplanned decumulation of inventories
(4) Normal profit decreases
(3) Unplanned decumulation of inventories With an unexpected sales increase, inventory levels fall as products are sold faster than anticipated, causing unplanned inventory reduction.
23 During festive seasons, the currency deposit ratio:
Options:
(1) Decreases
(2) Increases
(3) Has no impact
(4) First decreases, then increases
(2) Increases People tend to withdraw more cash during festive seasons for spending, increasing the currency deposit ratio as currency circulation rises.
24 The European Monetary Union was created in:
Options:
(1) 1996
(2) 1994
(3) 1999
(4) 2002
(3) 1999 The EMU was established in 1999, introducing the euro and aligning monetary policy across member states.
25 Correct statement in context of Circular Flow of Income in a two-sector economy:
Options:
(1) Household receives factor services from firms
(2) Household invests while firms save
(3) Firms produce goods and services
(4) Household supplies factor services to the Government
(3) Firms produce goods and services In a two-sector model, firms produce goods and services while households provide labor and receive income.
26 Identify the correct set of statements:
(A) Ex-Ante Saving represents planned savings.
(B) Ex-Post Saving represents actual savings.
Options:
(1) (A) and (D) only
(2) (A) and (C) only
(3) (B) and (D) only
(4) (C) and (D) only
(2) (A) and (C) only Ex-Ante Saving is the planned savings, and Ex-Post Saving reflects what was actually saved or occurred.
27 Match List-I with List-II:
List-I | List-II
(A) Annual Financial Statement | Main budget document
(B) Capital Receipts | Creates financial assets
(C) Capital Payment | Creates liabilities
(D) Export > Import | Trade surplus
Options:
(1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(2) (A) - (III), (B) - (I), (C) - (IV), (D) - (II)
(3) (A) - (III), (B) - (II), (C) - (IV), (D) - (I)
(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II) The Annual Financial Statement is the budget document, Capital Receipts increase assets, Capital Payment creates liabilities, and a trade surplus occurs when exports exceed imports.
28 How is civic authority getting benefitted due to biocomposting?
Options:
(1) Increased waste to dispose
(2) No waste to dispose
(3) Civic authority has no role
(4) Reduced waste to dispose
(4) Reduced waste to dispose Biocomposting reduces waste, which lessens the burden on civic authorities in managing waste disposal.
29 Correct statement based on passage:
Options:
(1) Earthworm takes equal time for composting
(2) Earthworm takes longer for composting
(3) Earthworm takes less time for composting
(4) Comparison is not possible
(3) Earthworm takes less time for composting Earthworms accelerate the composting process, converting organic matter more quickly than traditional methods.
30 Water bodies, including groundwater systems, have suffered due to:
Options:
(1) Biocomposting
(2) Chemical contamination and irrigation demand
(3) Organic farming
(4) Increased fertility of land
(2) Chemical contamination and irrigation demand Shifting from organic compost to chemical fertilizers has contaminated water sources and increased demand for irrigation.
31 In certain parts of the country, cattle are maintained primarily because they:
Options:
(1) Produce milk
(2) Produce dung, an important fertilizer and soil conditioner
(3) Serve as insect repellents
(4) Are a symbol of traditional values
(2) Produce dung, an important fertilizer and soil conditioner In some areas, cattle are kept mainly for their dung, which is used as fertilizer in organic farming practices.
32 What should be the suitable title for the above passage?
Options:
(1) Biocomposting
(2) Biopest Control
(3) Traditional Knowledge and Practice
(4) Uses of Chemical Fertilizers
(1) Biocomposting The passage emphasizes the use of biocomposting, highlighting the role of organic waste and earthworms in producing compost.
33 Before British rule, India was well known for which manufacturing industries’ products?
Options:
(1) Cotton and silk or khadi textiles
(2) Cotton and engineering products
(3) Cotton and silk textiles, metal and precious stones
(4) Engineering goods and precious metals
(3) Cotton and silk textiles, metal and precious stones India was renowned for its handicraft industries in textiles, metal, and precious stones, known globally for quality and craftsmanship.
34 The colonial government's economic policies in India were primarily focused on:
Options:
(1) Promoting India’s handicraft industries
(2) Protecting and promoting Indian small-scale industries
(3) Supporting economic interests in India and Britain
(4) Advancing Britain’s economic interests
(4) Advancing Britain’s economic interests The colonial government structured policies to benefit Britain, turning India into a supplier of raw materials for British industries.
35 Who were among the economists who estimated India’s National Income and Per Capita Income?
Options:
(1) Dadabhai Naoroji, William Digby, Bernier, V.K.R.V. Rao, R.C. Desai
(2) Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao, R.C. Desai
(3) Dadabhai Naoroji, Jagdish Bhagwati, V.K.R.V. Rao, R.C. Desai
(4) Dadabhai Naoroji, Findlay Shirras, V.K.R.V. Rao
(2) Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao, R.C. Desai These economists made significant contributions by estimating India’s national and per capita income during the colonial era.
36 What was the growth rate of India's aggregate real output during the first half of the 20th century?
Options:
(1) Less than two percent, with a meager one percent growth in per capita output
(2) Less than two percent, with one and a half percent growth in per capita output
(3) Less than two and a half percent, with half percent growth in per capita output
(4) Less than two percent, with half percent growth in per capita output
(4) Less than two percent, with half percent growth in per capita output The passage notes a slow growth rate during this period, with real output under two percent and per capita growth at only half percent.
37 Which of the following statements was true about Indian products before British rule?
Options:
(1) Inferior quality and cheap
(2) Promoted by the colonial government
(3) Enjoyed worldwide market based on quality
(4) Relied on imported raw materials
(3) Enjoyed worldwide market based on quality Indian handicraft products were known for their quality and craftsmanship, establishing a strong reputation worldwide.
38 A market where economic agents can freely exchange their endowments is called:
Options:
(1) Market economy
(2) Centrally planned economy
(3) Aggregate demand economy
(4) Aggregate supply economy
(1) Market economy A market economy enables free exchange of goods and services, allowing agents to interact based on supply and demand.
39 Which statements are correct about utility and indifference curves?
Options:
(A) Marginal Utility is the change in Total Utility due to one additional unit
(B) Indifference Curves intersect each other
(C) Marginal Utility becomes zero when Total Utility is constant
(D) Indifference Curve slopes downward
Correct Statements:
(1) (A), (B), (E)
(2) (A), (C), (E)
(3) (A), (D), (E)
(4) (B), (D), (E)
(2) (A), (C), (E) Marginal Utility is the added utility from an extra unit, it becomes zero when total utility remains constant, and indifference curves slope downward.
40 Match List-I with List-II:
List-I | List-II
(A) Equilibrium | Consumers and firms' plans match
(B) Excess supply | Supply > Demand
(C) Inferior good | Demand falls with higher income
(D) Price ceiling | Upper limit by government
Options:
(1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(2) (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
(3) (A) - (I), (B) - (III), (C) - (IV), (D) - (II)
(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
(2) (A) - (I), (B) - (III), (C) - (II), (D) - (IV) Equilibrium means matched plans, excess supply means more supply than demand, inferior goods demand falls with income, and a price ceiling is a government limit.
41 When the Elasticity of Demand Curve is 1 at every point on the Demand Curve, this curve is known as:
Options:
(1) Perfectly inelastic demand curve
(2) Perfectly elastic demand curve
(3) Rectangular Hyperbola
(4) Greater than unitary demand curve
(3) Rectangular Hyperbola A demand curve with unitary elasticity at all points forms a rectangular hyperbola, where total revenue remains constant along the curve.
42 According to the Theory of Consumer Behaviour, the inequality p1x1 + p2x2 ≤ M is called the Consumer’s:
Options:
(1) Budget
(2) Budget Set
(3) Budget Constraint
(4) Budget Behaviour
(3) Budget Constraint This inequality represents the consumer’s budget constraint, defining the combinations of goods affordable within their income.
43 Choose the correct statements:
(A) Adam Smith is termed the 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 the primary function of money.
Options:
(1) (A), (B), and (D) only
(2) (A), (B), and (C) only
(3) (A), (B), (C), and (D)
(4) (B), (C), and (D) only
(2) (A), (B), and (C) only Adam Smith is the Father of Modern Economics, J.M. Keynes introduced the Theory of Income, Output, and Employment, and the four-sector model consists of consumption, investment, government spending, and net exports.
44 Arrange the following in proper chronological sequence (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 Peace by Keynes.
Options:
(1) (C), (D), (A), (B)
(2) (A), (B), (C), (D)
(3) (A), (C), (B), (D)
(4) (D), (A), (C), (B)
(1) (C), (D), (A), (B) The correct sequence is Adam Smith's "Wealth of Nations" (1776), Keynes's "Economic Consequences of the Peace" (1919), "General Theory of Employment, Interest, and Money" (1936), and Mahalanobis's fellowship (1945).
45 If there is no government and no foreign trade, then:
Options:
(1) G = T = M = X >1
(2) G = T = M = X = 1
(3) G = T = M = X = 0
(4) G = T = M = X(3) G = T = M = X = 0In a closed economy without government or foreign trade, government spending (G), taxes (T), imports (M), and exports (X) are all zero.
46 The value of Nominal GDP is $1100, and the value of Real GDP is $1000. Find the value of GDP deflator.
Options:
(1) 0.9
(2) 1.1
(3) 1
(4) 0.8
(2) 1.1 GDP Deflator is calculated as Nominal GDP / Real GDP. Thus, 1100/1000 = 1.1.
47 Identify the correct statements:
(A) Stocks are defined over a period of time.
(B) Flows are defined over a period of time.
(C) Flows 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.
Options:
(1) (A), (C), and (E) only
(2) (B), (C), and (D) only
(3) (B), (D), and (E) only
(4) (C), (D), and (E) only
(3) (B), (D), and (E) only Flows are defined over time, stocks at a point in time, and GVA at market prices includes taxes and excludes subsidies.
48 If the supply of final goods is infinitely elastic at a constant price over a short period, Aggregate output is determined solely by Aggregate demand. This is called the Principle of:
Options:
(1) Aggregate supply
(2) Aggregate demand
(3) Effective demand
(4) Perfectly inelastic demand
(3) Effective demand The effective demand principle states that output is determined by aggregate demand when supply is infinitely elastic and prices are constant in the short term.
49 Nominal Interest Rate =
Options:
(1) Real Interest Rate × Inflation Rate
(2) Real Interest Rate – Inflation rate
(3) Real Interest Rate / Inflation rate
(4) Real Interest Rate + Inflation rate
(4) Real Interest Rate + Inflation rate The nominal interest rate is the sum of the real interest rate and inflation rate, according to the Fisher equation.
50 If the Marginal Propensity to Save (MPS) increases from 0.4 to 0.5, what would be the impact on the Multiplier?
Options:
(1) Multiplier increases
(2) Multiplier remains the same
(3) Multiplier value is undetermined
(4) Multiplier decreases
(4) Multiplier decreases The multiplier is inversely related to MPS. As MPS increases, the multiplier decreases.


CUET Questions

1.
The correct solution of \(-22 < 8x - 6 \leq 26\) is the interval:

    • \([-2, 4]\)
    • \((-2, 4]\)
    • \((-2, 4)\)
    • \([-2, 4)\)

    2.
    A sample size of \(x\) is considered to be sufficient to hold the Central Limit Theorem (CLT). The value of \(x\) should be:

      • less than 20
      • greater than or equal to 30
      • less than 30
      • sample size does not affect the CLT

      3.
      For predicting the straight-line trend in the sales of washing machines (in thousands) on the basis of 8 consecutive years' data, the company calculates 4-year moving averages. If the sales of washing machines for respective years are \( a, b, c, d, e, f, g, \) and \( h \), then which of the following averages will be computed?
      (A) \( \frac{a + b + c + d}{4} \)  
      (B) \( \frac{a + c + d + e}{4} \)  
      (C) \( \frac{c + d + f + h}{4} \)  
      (D) \( \frac{b + c + d + e}{4} \)  
      Choose the correct answer from the options given below:

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

        4.
        In a series of 4 trials, the probability of getting two successes is equal to the probability of getting three successes. The probability of getting at least one success is:

          • \(\frac{609}{625}\)
          • \(\frac{16}{625}\)
          • \(\frac{513}{625}\)
          • \(\frac{112}{625}\)

          5.
          In a 600 m race, the ratio of the speeds of two participants A and B is 4:5. If A has a head start of 200 m, then the distance by which A wins is:

            • 500 m
            • 200 m
            • 100 m
            • 120 m

            6.
            David can row a boat in still water at the rate of 5 km/hr. He rowed in a river downstream to meet his friend. After returning back, he observed that the duration of the upstream journey was three times that of the downstream journey. The speed of the stream was:

              • 2 km/hr
              • 2.5 km/hr
              • 3 km/hr
              • 3.5 km/hr

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