Common University Entrance Test : CUET (UG) Section II Commerce Group Domain specific subject Economic solved Sample Paper for free Mock practice. Economics Solved practice paper as per latest syllabus and exam pattern is very useful for admission in academic session 2023-2024.
Economics : Sample paper for CUET (UG)
Questions : Attempt any 40 questions out of the below given 50 questions
Time : 45 Minutes
Q.1: Who is the father of economics?
(a) Karl Marx
(b) J.M. Keynes
(c) Adam Smith
(d) Alfred Marshall
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Q.2: Economics cost is equal to
(a) accounting cost
(b) opportunity cost
(c) sum of accounting cost and opportunity cost
(d) difference of accounting cost and opportunity cost
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Q.3: Which one of the following is not the feature of socialist economy?
(a) Social welfare
(b) Freedom of enterprise
(c) Public ownership
(d) Planning mechanism
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Q.4: Technique of production is focused in which central problem of economy?
(a) What to produce?
(b) How to produce?
(c) For whom to produce?
(d) Both (b) and (c)
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Q.5: When total utility increases at a diminishing rate, marginal utility will be
(a) increasing
(b) diminishing
(c) constant
(d) diminishing but positive
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Q.6: According to cardinal measurement of utility
(a) Utility is quantitative
(b) Utility is qualitative
(c) Utility is both quantitative and qualitative
(d) Utility is constant
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Q.7: In accordance with the relationship between Total Utility and Marginal Utility, when MU is negative, then
(a) TU increases
(b) TU decreases
(c) TU remains constant
(d) TU becomes zero
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Q.8: Law of Equi-Marginal utility is a law of
(a) Production of Wealth
(b) Consumption of Wealth
(c) Distribution of Wealth
(d) Exchange of Wealth
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Q.9: Which of the following is/are determinants of demand?
(a) Price of the good
(b) Income of the consumer
(c) Price of related goods
(d) All of the above
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Q.10: If the price elasticity of demand ranges between 0 and less than 1, demand is
(a) inelastic
(b) elastic
(c) perfectly elastic
(d) unit elastic
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Q.11: If a 10% rise in price of Good X leads to 20% fall in its quantity demanded, its elasticity of demand is
(a) elastic
(b) inelastic
(c) unitary elastic
(d) perfectly inelastic
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Q.12: What will be the elasticity of demand if price and total expenditure moves in the opposite direction using total outlay method?
(a) Perfectly elastic
(b) Perfectly inelastic
(c) Elastic
(d) None of these
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Q.13: Average Product (AP) is at its maximum when
(a) MP > AP
(b) MP < AP
(c) MP = AP
(d) MP becomes negative
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Q.14: Payment made to outsiders for their goods and services are called …… .
(a) opportunity cost
(b) real cost
(c) explicit cost
(d) implicit cost
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Q.15: If AR is 40 per unit from the sale of 3 goods and it is 30 per unit from the sale of 4 goods. Find the marginal revenue of 4th unit of goods.
(a) 10
(b) 30
(c) 40
(d) 0
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Q.16: In which time period, all factors of production become variable and factors of production change with the change in level of production?
(a) Long period
(b) Market period
(c) Short period
(d) All of these
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Q.17: The supply curve is usually
(a) upward rising
(b) downward sloping
(c) nothing definite can be said
(d) None of the above
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Q.18: When supply is perfectly inelastic, Elasticity of Supply is equal to
(a) – 1
(b) zero
(c) 1
(d) infinity
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Q.19: As you are aware of recent outbreak of Covid-19, which has a led to lockdown in many countries around the globe. In extension of this, government has stopped imports in India from various countries. How it will impact supply of a good concerned?
(a) Expansion in quantity supply
(b) Contraction in quantity supply
(c) Increase in supply
(d) Decrease in supply
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Q.20: The supply of a good refers to
(a) Actual production of goods
(b) Total stock of goods
(c) Stock available for sale
(d) Amount of goods offered for sale at a particular price per unit time
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Q.21: Monopolist can determine …… .
(a) price
(b) output
(c) Both (a) and (b)
(d) None of these
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Q.22: Which of the following is/are the features of monopoly form of market?
(a) Restrictions on entry of new firms
(b) No close substitutes
(c) Full control over price
(d) All of the above
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Q.23: Which of the following is/are broad market forms based on the level of competition?
(i) Perfect competition
(ii) Imperfect competition
(iii) Monopolistic competition
(iv) Oligopoly competition
Choose the most appropriate option
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (iii) and (iv)
(d) (i), (ii) and (iii)
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Q.24: ………… form of market demand curve is perfectly elastic in nature.
(a) Perfect competition
(b) Monopoly market
(c) Monopolistic market
(d) Oligopoly market
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Q.25: Price ceiling means …… price of a commodity that the sellers can charge from the buyers.
(a) Minimum
(b) Maximum
(c) Any
(d) None of the above
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Q.26: Which price is expected to exist when the forces of supply and demand have fully adjusted themselves?
(a) Market price
(b) Price ceiling
(c) Floor price
(d) Normal price
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Q.27: Price ceiling and price floor are part of
(a) direct action
(b) indirect action
(c) associated action
(d) Both (a) and (b)
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Q.28: If in an industry, demand and supply will not intersect in positive quadrant, then it is called
(a) illegal industry
(b) viable industry
(c) non-viable industry
(d) sick industry
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Q.29: The process of adding to physical stock of capital is
known as
(a) investment
(b) savings
(c) capital formation
(d) Both (a) and (c)
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Q.30: Which one of the following is not true?
(a) GNP = GDP + Depreciation
(b) NNP = GNP + Depreciation
(c) NDP = GNP – Depreciation – NFIA
(d) GNP = NDP + Depreciation + NFIA
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Q.31: Increase in stock of capital is known as
(a) Capital Loss
(b) Capital Profit
(c) Capital Formation
(d) None of these
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Q.32: Which of the following is not included in the calculation of gross national product?
(a) Purchase and sale of old commodities
(b) Intermediate commodities
(c) (a) and (b) both
(d) None of the above
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Q.33: Net export is zero when
(a) export is zero
(b) import is zero
(c) exports = imports
(d) All of these
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Q.34: Induced investment………… related to the level of income in an economy
(a) positively
(b) inversely
(c) not
(d) Can’t say
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Q.35: During excess demand, Central Bank will
(a) increase margin requirement
(b) decrease margin requirement
(c) keep margin requirement constant
(d) keep margin requirement zero
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Q.36: Investment is an addition to …… .
(a) supply
(b) current stock
(c) capital stock
(d) None of these
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Q.37: Plastic money includes
(a) debit cards
(b) credit cards
(c) prepaid cash cards
(d) All of the above
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Q.38: Which of the following is/are functions of Central Bank?
(a) Bank of issue
(b) Credit control
(c) Banker of Banks
(d) All of these
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Q.39: Credit creation depends on
(a) initial level of deposit
(b) money multiplier
(c) Both (a) and (b)
(d) None of the above
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Q.40: Which of following measures of money supply are considered as monetary base?
(a) M1
(b) M2
(c) M3
(d) M4
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Q.41: …… taxes do not depend on the level of income.
(a) Direct
(b) Indirect
(c) Progressive
(d) Lumpsum
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Q.42: If borrowings and other liabilities are added to the budget deficit, we get
(a) fiscal deficit
(b) primary deficit
(c) capital deficit
(d) revenue deficit
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Q.43: The non-tax revenue in the following is …… .
(a) export duty
(b) import duty
(c) dividends
(d) excise
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Q.44: A …… is a legally compulsory payment imposed by the government on the households and producers.
(a) penalty
(b) fine
(c) fees
(d) tax
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Q.45: Which items are excluded in BoT, but included in BoP?
(a) Visible items
(b) Invisible items
(c) Private capital
(d) Both (b) and (c)
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Q.46: Buying and selling of foreign currencies take place at
(a) goods market
(b) gold market
(c) foreign exchange market
(d) All of these
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Q.47: Balance of payments deficit is calculated by taking into account the …… only.
(a) accommodating transactions
(b) autonomous transactions
(c) unilateral transactions
(d) None of these
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Q.48: In case of currency appreciation, the domestic currency becomes …… .
(a) less valuable
(b) more valuable
(c) rise
(d) fall
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Q.49: Which one of the following is not the feature of socialist economy?
(a) Social welfare
(b) Freedom of enterprise
(c) Public ownership
(d) Planning mechanism
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Q.50: If MPC = 1, the value of multiplier is …… .
(a) 0
(b) 1
(c) Between 0 and 1
(d) infinity
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Answer Key : CUET Economic Sample Paper
| 1. (c) | 2. (c) | 3. (b) | 4. (b) | 5. (d) | 6. (a) | 7. (b) | 8. (b) | 9. (d) | 10. (a) |
| 11. (a) | 12. (c) | 13. (c) | 14. (c) | 15. (d) | 16. (a) | 17. (a) | 18. (b) | 19. (d) | 20. (d) |
| 21. (c) | 22. (d) | 23. (a) | 24. (a) | 25. (b) | 26. (d) | 27. (a) | 28. (c) | 29. (d) | 30. (a) |
| 31. (c) | 32. (c) | 33. (c) | 34. (a) | 35. (a) | 36. (c) | 37. (d) | 38. (d) | 39. (c) | 40. (c) |
| 41. (d) | 42. (a) | 43. (c) | 44. (d) | 45. (d) | 46. (c) | 47. (b) | 48. (b) | 49. (b) | 50. (d) |
Thanks for attempt CUET (UG) Economic Sample Paper for Mock practice of upcoming exams.
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