CUET Economics Sample Paper Set 05

Question: Amongst the following which is the major cause of economic problems?
a) Unlimited human wants
b) Alternative usage of resources
c) Scarcity of economic resources
d) All of the above

Answer: d

Question:
Assertion (A): The land is a factor of production.
Reason (R) : Land rent is the remuneration paid for the use of land.
a) Both Assertion and Reason are true and Reason (R) is the correct explanation of Assertion (A)
b) Both Assertion and Reason are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True

Answer: c

Question: Monotonicity of preferences implies that the indifference curve is
a) Downward sloping
b) Upward sloping
c) Parallel to the x axis
d) Parallel to the y axis

Answer: a

Question: Which trading system works on double coincidence of wants?
a) Barter System
b) Informal trade system
c) Monetary system
d) None of the above

Answer: a

Question:
Assertion (A): Stocks are defined at a point in time
Reason (R): It does not have a time dimension
a) Both Assertion and Reason are true and Reason (R) is the correct explanation of Assertion (A)
b) Both Assertion and Reason are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True

Answer: a

Question: Sumit exchanged 10 mangoes with Raman and received 8 Bananas in return. In which system are they dealing?
a) Barter System
b) Informal trade system
c) Monetary system
d) None of the above

Answer: a

Question:
Assertion (A):GDP gives us only a measure of the total income of an economy.
Reason (R ): In countries with a high rate of inequality, a growth in GDP disproportionately benefits the wealthy, leaving the average person with less benefits.
a) Both Assertion and Reason are true and Reason (R) is the correct explanation of Assertion (A)
b) Both Assertion and Reason are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True

Answer: c

Question: Cheque , Promissory Note , exchange note are which type of money
a) Legal money
b) Digital money
c) Credit money
d) None of the above

Answer: c

Question: Ankush can pay Rohan with Rs 7000 in exchange of what he bought from his store. Money is solving which problem here?
a) lack of double coincidence of wants
b) difficulty in measurement of value
c) difficulty in store of value
d) All of the above

Answer: a

Question: An annual allowance of capital goods is known as:
a) Appreciation
b) Depreciation
c) Upgradation
d) All of the above

Answer: b

Question: By which means of the following can central bank increase the flow of credit
a) Raising interest rate
b) Raising repo rate
c) Selling government securities
d) None of the above

Answer: c

Question: In current scenario, we can often delay payments, which function of money is coming into play here?
a) Measure of value
b) Medium of exchange
c) Store of value
d) Standard of deferred payments

Answer: d

Question:
Assertion (A) the demand curve under perfect competition is horizontal straight line
Reason (R) the price is fixed under perfect competition Which of the following statements are correct?
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true, but (R) is not the correct explanation of (A)
c) (A) is true but (R) is false
d) (A) is false but (R) is true

Answer: a

Question: Which of the following is the most liquid form of money supply?
a) M3
b) M4
c) M1
d) None of the above

Answer: c

Question: Which of the following is the least liquid form of Money supply?
a) M3
b) M4
c) M1
d) M2

Answer: b

Question: The three methods of measuring national income are:
a) Value added method
b) Income method
c) Expenditure method.
d) All of the above

Answer: d

Question: Which of the following institution produces high powered money
a) Commercial bank
b) Central bank
c) Government
d) Both b and c

Answer: d

Question: Personal disposable income = Rs. 2000 lakhs
Personal income = Rs. 5500 lakhs Miscellaneous receipts of government = Rs. 500 lakhs
Calculate the personal tax
a) Rs. 3500 lakhs
b) Rs. 3000 lakhs
c) Rs. 2500 lakhs
d) None of the above

Answer: b

Question: The change in demand occurs due to:
a) price of related good
b) income of the consumer
c) Population increase
d) All the above

Answer: d

Question: Promissory note and IOU’S fall under category of money?
a) Credit money
b) Digital money
c) Real money
d) All of the above

Answer: a

Question:Domestic factor income is Rs 35000 crores
national income is Rs 40000crores,
the net factor income from abroad= ?
a) 75000
b) 5000
c) -5000
d) 15000

Answer: c

Question:
Assertion (A): Capital refers to the manufactured material source of production.
Reason (R ): It is a man-made production aid that is not consumed for their own sake.
a) Both Assertion and Reason are true and Reason (R) is the correct explanation of Assertion (A)
b) Both Assertion and Reason are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True

Answer: b

Question: Income that includes factor incomes and transfer incomes is called:
a) Private income
b) National income
c) Operating income
d) Income from abroad

Answer: a

Question: Covid has affected market badly. In a meeting the decision is taken by the RBI says that it will sell government securities, what will be the immediate affect?
a) Money supply increases
b) Money supply decreases
c) Money supply is unaffected
d) Above information isn’t enough

Answer: a

Question: Net investment is calculated by:
a) Gross investment - indirect expenses
b) Gross investment - fixed cost
c) Gross investment - depreciation
d) None of the above

Answer: c

Question: Mamta has invested her money in securities and bonds , under which category does Securities and bonds fall?
a) Near money
b) Digital money
c) Real money
d) All of the above

Answer: a

Question: In which stage of production a rational producer likes to operate in shot-run production?
a) First Stage
b) Second Stage
c) Third Stage
d) None of these

Answer: b

Question: A two-thousand-rupee note can be accepted in every state of India, when we are buying any good or services. Which feature of money can we understand by this statement?
a) General acceptability
b) Homogenous unit
c) Liquid asset
d) All of the above

Answer: d

Question:
Assertion (A): People's well-being may not increase at the same rate as GDP.
Reason (R ): It is possible that when GDP rises, disparities in income distribution may rise as well, widening the gap between rich and poor.
a) Both Assertion and Reason are true and Reason (R) is the correct explanation of Assertion (A)
b) Both Assertion and Reason are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True

Answer: b

Question: Private Investment minus savings = Rs. 2500 crores Budget deficit = Rs. 2000 crores (Negative) What was the volume of the trade deficit of that country?
a) -500
b) 500
c) 4500
d) -2000

Answer: b

Question: Who gave the statement , Money is what Money does?
a) J.M Keynes
b) Nicolas
c) Hartley Withers
d) Adam Smith

Answer: c

Question: The undistributed profits of the companies is known as:
a) Retained Earnings
b) Net income from property & entrepreneurship
c) Net compensation from employees
d) None of the above

Answer: a

Question: The statement that price is determined by Demand and Supply was given by whom:
a) Jevons
b) Walras
c) Marshall
d) None of these

Answer: c

Question: Which of the following is the minimum fraction of deposits which the banks are mandate to keep as cash themselves?
a) Legal reserve ratio
b) CRR
c) SLR
d) NONE OF THE ABOVE

Answer: a

Question: If a single transaction is recorded twice or more than twice in the calculation of national income, then it is known as:
a) Double counting
b) Triple counting
c) Single counting
d) None of the above

Answer: a

Question:
Assertion (A): Enterprises will receive less money in the form of revenue, lowering production and employment.
Reason (R ): Households will spend less than their actual earnings if there is some leakage.
a) Both Assertion and Reason are true and Reason (R) is the correct explanation of Assertion (A)
b) Both Assertion and Reason are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True

Answer: a

Question: GDP at market price of a country in a particular year was Rs 1200 crores. Net Factor Income from Abroad was Rs 200 crores. The value of Indirect taxes – Subsidies was Rs 250 crores National Income was Rs 950 crores Calculate the aggregate value of depreciation.
a) 200
b) 300
c) 600
d) 400

Answer: a

Question: National income is calculated by:
a) GDP at MP + depreciation
b) GDP at MP - depreciation
c) GDP at MP - depreciation + NFIA
d) GDP at MP - Depreciation + NFIA - indirect taxes + subsidies

Answer: d

Question:
Assertion (A) under perfect competition demand for output of each producer is perfectly elastic.
Reason (R) Single price prevails under perfect competition which is determined by demand and supply.
Which of the following statements are correct?
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true, but (R) is not the correct explanation of (A)
c) (A) is true but (R) is false
d) (A) is false but (R) is true

Answer: a

Question: Manufacturing sector is also known as:
a) Primary sector
b) Tertiary sector
c) Secondary sector
d) All of the above

Answer: c

Question:
Assertion (A): Externalities are the conditions referring to the benefits or harms of an activity that are caused by a firm or an individual and for which they are neither paid nor penalized.
Reason (R ): Activities which result in benefits to others are termed as positive externalities and activities which result in harm to others are termed as negative externalities.
a) Both Assertion and Reason are true and Reason (R) is the correct explanation of Assertion (A)
b) Both Assertion and Reason are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True

Answer: b

Question: The sector that produces goods by exploiting natural resources is known as:
a) Primary sector
b) Tertiary sector
c) Secondary sector
d) All of the above

Answer: a

Question: If the initial deposit is RS.500 and the LRR is 10 percent, then the money multiplier is?
a) 2
b) 20
c) 10
d) 1

Answer: c

Question:
Assertion (A) Price rigidity exists under oligopolistic market.
Reason (R) The rival firms under oligopolistic market match the price decrease but not the increase.
Which of the following statements are correct?
a) Both (A) and (R) are true and (R) is the correct explanation of (A).
b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
c) (A) is true but (R) is false.
d) (A) is false but (R) is true.

Answer: a

Question: When we study demand, we study the perspective of
a) Consumer
b) Shopkeeper
c) Wholesaler
d) Manufacturer

Answer: a

Question: Which of the following is not a factor of production?
a) Land
b) Labour
c) Capital
d) Investment

Answer: d

Question:
Assertion (A): When GDP rises, disparities in income distribution will never rise.
Reason (R ): GDP does not take into account changes in income distribution inequities
a) Both Assertion and Reason are true and Reason (R) is the correct explanation of Assertion (A)
b) Both Assertion and Reason are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True

Answer: d

Question: On which date did Demonetization took place
a) 8thNovember 2016
b) 7thNovember 2017
c) 6thNovember 2016
d) 10the November 2017

Answer: a

Question: Which agreement of purchase also has specification about date and price of resale of this security
a) Repurchase agreement
b) Reverse repurchase agreement
c) Future agreement
d) Bank rate agreement

Answer: a

Question:
Assertion (A) The ratio of K/L will adjust through time to the equilibrium value.
Reason (R) Technical co-efficient of production are fixed.
Which of the following statements are correct?
a) Both (A) and (R) are true and (R) is the correct explanation of (A).
b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
c) (A) is true but (R) is false.
d) (A) is false but (R) is true.

Answer: a