in

e.
ur
CUET 2020

s
du
1 B 26 B 51 B 76 C
2 D 27 A 52 C 77 A

|e
3 A 28 A 53 D 78 B

1|
4 C 29 B 54 A 79 C
5 D 30 B 55 C 80 D

/0
6 A 31 A 56 D 81 B

00
7 A 32 B 57 B 82 B
8 B 33 D 58
46 C 83 A
9 D 34 C 59 A 84 A
82
10 B 35 D 60 B 85 D
11 C 36 A 61 C 86 A
00

12 A 37 B 62 A 87 B
81

13 C 38 B 63 B 88 D
14 C 39 B 64 A 89 C
15 D 40 C 65 A 90 A
||

16 A 41 D 66 B 91 C
in

17 C 42 A 67 C 92 A
e.

18 D 43 B 68 D 93 D
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19 D 44 B 69 B 94 C
us

20 C 45 A 70 B 95 A
21 B 46 C 71 C 96 B
ed

22 B 47 A 72 D 97 A
23 A 48 C 73 A 98 B
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24 D 49 D 74 B 99 C
25 D 50 B 75 A 100 A
ac
nt
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 PART–B

in
26. Which one of the following is less likely to be affected by extreme values?
A) Mean B) Range C) Interquartile range D) Correlation

e.
27. Which of the following can be described as a categorical variable?

ur
A) Age B) Annual income
C) Grade point average D) Religion

us
28. Suppose a n value series x1 , x 2 , x3 ......x n has standard deviation of σ. The standard deviation of
x1 + k , x 2 + k , x3 + k ,......x n + k would be:

ed
A) σ B) σ+k C) σ-k D) σk

29. Let x1 , x2 , x3 ......xn be a random sample from N ( µ , σ 2 ) . What is the sampling distribution of
(x − µ ) ?

t@
s n
A) F-distribution B) t-distribution

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C) z-distribution D) Normal distribution
30. The ‘school of economics’ found that 60% of its students want to register in Business Economics, 70%
want to register in Financial Economics, and 45% want to register in both. What is the probability that a

nt
student wants to register in at least one of these?
A) 0.15 B) 0.85 C) 0.10 D) 0.55
co
31. A store sells from 0 to 12 mobile phones per day. The amount for daily mobile phone sales in this case is a
A) Continuous random variable B) Discrete random variable
,
C) Dummy variable D) Non-random variable
50

32. If the mean age and variance of a class of 100 students are 20 and 25 respectively. The coefficient of
variation (CV) would be
00

A) 45% B) 40% C) 25% D) 80%

33. A numerical description of the outcome of an experiment is called
A) Descriptive statistics. B) Probability function.
48

C) Variance. D) Sample.
34. The level of significance is the
00

A) Same as confidence coefficient.

B) Same as p-value.
C) Maximum allowable probability of Type-I error.
81

D) Maximum allowable probability of type-II error.

35. In a sample of 300 students in a university 60 students are economics majors. Based on this
information, the ‘University Weekly ’reported that ‘20 percent of all students are economics majors’.
in,

This report is an example of

A) Sample. B) Population.
e.

C) Statistical inference. D) Mean deviation.

36. A bet is said to be a fair bet whose
ur

A) expected winnings is always positive. B) expected winnings is always negative.

C) expected winning is equal to zero. D) expected winning is equal to 1.
us

37. Suppose that you are playing a game with single die assumed fair. In this game, you win Rs. 20 if a 3
turns up; Rs.40 if a 5 turns up; lose Rs. 30 if a 6 turns up. You neither win nor lose if any other faces
ed

turn up. What is the expected sum of money you win?

A) Rs. 30 B) Rs. 10 C) Rs. 5 D) Rs. 20

[4] PG-QP–44
38. Suppose that the mean and median salaries of workers are Rs. 60 and Rs. 45 respectively. The
sample standard deviation is assumed to be Rs. 5. The coefficient of Skewness would be

in
A) 9 B) 3

e.
C) –9 D) –3
39. The coefficient of correlation (ρ) should be

ur
A) 0 ≤ ρ ≤1 B) −1 < ρ < 1
−1 ≤ ρ ≤ 1 −1 ≤ ρ ≤ 0

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C) D)
40. The fitted regression is given by Y = −15 + 0.75 X . What is the value of residual at the point X = 30, Y
= 50?

ed
A) 42.5 B) 27.5
C) 0 D) 7.5

t@
41. Suppose that the standard deviation of X and Y are given as 2.5 and 1.25 respectively. If the
covariance between X and Y is 0.80, then the correlation coefficient of the variables would be
A) 0.25 B) 0.21

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C) 0.64 D) 0.80
42. If the quantity demand of a product increases from 40000 to 48000 per year, when per capita income

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increases from Rs. 30000 to Rs. 33000 per year, then what is the income elasticity of demand?
A) 1 B) 0

43.
C) 2

f ( x) = 4 x 3 − 5 x 2 + 10 implies
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D) Cannot be found

A) f (1) = 10 B) f ′( 2) = 20
50

C) f ′′( x ) = 24 x − 10 D) f ′( x) = 12 x 2 − 10 x + 10
00

44. The sum of diagonal elements of a square matrix is known as

A) Determinants of the matrix B) Trace of the matrix
C) Cofactor of the matrix D) Adjoint matrix
48

45. Let y = x 4 − 6 x 3 + 4 x 2 − 13 . At x=4, the function is

A) Increasing B) Deceasing
00

C) Stationary D) None of them are correct.

1+ x − 1− x
81

46. Evaluating lim yields

x →0 x
A) 0 B) 1
in,

C) 2 D) Cannot be determined.

47. Differentiate the function y = x2 +1

e.

[ ]
1 2 −1 / 2
x 1 1
x +1 ( 2 x + 1) −1 / 2
ur

A) 2 B) x2 +1 C) 2 D) x2 +1
us

x− x
48. Let a function f be defined by f ( x ) = , x ≠ 0 and f(0)=2, then f is:
x
ed

A) Continuous everywhere B) Continuous nowhere

C) Continuous for all x except x = 0 D) Continuous for all x except x = 1

[5] PG-QP–44
49. The transpose of a square matrix is a

in
A) Raw matrix B) Column matrix
C) Null matrix D) Square matrix

e.
50. Matrix A has order 5 × 3 and matrix B has order 3 × 2, then the product matrix AB has order
A) 2 × 5 B) 5 × 2

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C) 3 × 3 D) Matrix multiplication not possible
51. Find the consumer surplus at Q = 5 for the demand function P = 30 − 4Q .

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A) 10 B) 50
C) 30 D) 40

ed
52. Which of the following is NOT a property of linear programing
A) A linear objective function that is to be minimized or maximized.

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B) Linear structural constraint.
C) Non-negativity constraints.
D) Alternative optimal solution.

ac
53. A graph showing all the combinations of goods and services that can be produced if all of society's
resources are used efficiently is a

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A) demand curve. B) supply curve
C) production possibility frontier. D) circular-flow diagram.

co
54. Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods
Z and Y are
A) perfect substitutes. B) unrelated goods.
,
C) complements. D) substitutes.
50

55. A shift in the demand curve (drawn in the traditional Price-Quantity space) to the left may be caused by
(Assume that the good is normal)
00

A) a decrease in supply. B) a fall in income.

C) a fall in the price of a complementary good. D) a fall in the number of substitute goods.
56. All of the following can be classified as positive economics except:
48

A) In times of depression, unemployment rises.

B) Rise in tax rates increases the revenue of the government.
00

C) Sharp decline in industrial output may hurt the GDP growth rate.
D) Increase in petrol prices leads to increase in demand for CNG vehicles.
57. Given that the market for shirts is in equilibrium. If the price of cotton decreases, the equilibrium price
81

and quantity (respectively) of shirts will:

A) increase, increase B) decrease, decrease
C) increase, decrease D) decrease, increase
in,

58. Which of the following is not a macroeconomic issue?

A) The study of the relationship between the unemployment rate and the inflation rate
e.

B) The forces determining the price level in an individual market

C) The determination of total output in the economy
ur

D) The aggregate behavior of all decision-making units in the economy

59. France experiences an improvement in productivity due to the introduction of improved technology. In
us

terms of France’s production possibility frontier, we would show this change as

A) a movement along the frontier.
B) a shift from a point outside the frontier to a point inside the frontier.
ed

C) a shift from a point on the frontier to a point outside the frontier.

D) a shift outwards by the entire frontier.

[6] PG-QP–44
60. Energizer batteries and Duracell’s batteries are substitutes. The Energizer cuts supply and increases
the price of its batteries. For Duracell, equilibrium price will and equilibrium quantity will in the market.

in
A) rise; rise B) fall; rise C) fall; fall D) rise; fall

e.
61. The demand for JIF peanut butter will decrease, if there is an increase in __________.
A) the price of JIF peanut butter. B) the price of Peter Pan peanut butter (a substitute).

ur
C) the demand for jelly (a complement). D) the price of bread (a complement).
62. A 10% increase in the price of video games results in a 5% decrease in the quantity of video games

us
demanded. The price elasticity of demand is and demand is and total revenue will _______.
A) –0.5; inelastic, decrease B) –2.0; elastic, decrease

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C) –0.5; inelastic, increase D) –2.0; elastic, increase
63. When an economy uses all its resources fully in production then;

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A) It will always lie on the PPF B) It will lie outside the PPF
C) It may not lie on the PPF D) It will lie on the mid-point of the PPF
64. Chicken and fish are substitutes. If the price of chicken increases, the demand for fish will;

ac
A) increase or decrease but the demand curve for chicken will not change.
B) increase and the demand curve for fish will shift rightward.
C) not change but there will be a movement along the demand curve for fish.

nt
D) decrease and the demand curve for fish will shift leftward
65. The price of a bus rides decreases, but the total revenue of the bus company decreases. The demand
for bus rides is ________.
A) unit elastic B) elastic
, co
C) inelastic D) perfectly inelastic
66. The simple Keynesian model
50

A) overstated the effect of an increase in government spending by neglecting the necessary increase
in the interest rate and consequent decline in investment that accompany an increase in
government spending.
00

B) understated the effect of an increase in government spending by neglecting the necessary

increase in the interest rate and consequent decline in investment that accompany an increase in
government spending.
48

C) overstated the effect of an increase in government spending by neglecting the necessary

decrease in the interest rate and consequent increase in investment that accompany a decrease
in government spending.
00

D) understated the effect of an increase in government spending by neglecting the necessary

decrease in the interest rate and consequent decrease in investment that accompany an increase
in government spending.
81

67. When moving from gross domestic product to gross national product, one has to
A) subtract earnings by foreign residents and firms in India.
in,

B) subtract foreign earnings of Indian residents and firms.

C) add foreign earnings of Indian residents and firms.
D) Both A) and C)
e.

68. In the simple Keynesian model, if the equilibrium level of income is Rs. 300 billion, the MPC is 0.75,
and government expenditures increase by 20 billion. What is the new equilibrium level of income?
ur

A) Rs. 320 billion B) Rs. 380 billion C) Rs. 220 billion D) Rs. 520 billion
us

69. In the liquidity trap case where the LM schedule is nearly horizontal,
A) both monetary and fiscal policy are highly effective.
B) monetary and fiscal policy are ineffective.
ed

C) monetary policy is ineffective and fiscal policy is effective.

D) fiscal policy is ineffective and monetary policy is effective.

[7] PG-QP–44
70. Monetary policy will be

in
A) less effective the higher the interest elasticity of investment, and thus the steeper the IS schedule.
B) more effective the higher the interest elasticity of investment, and thus the flatter the IS schedule.

e.
C) equally effective regardless of whether or not the interest elasticity of investment is higher or
lower, or the IS curve is flatter or steeper.
D) more effective with a vertical IS curve.

ur
71. The main decision for a profit maximizing perfectly competitive firm is not what ______ but what ____

us
A) level of output to produce; price to charge
B) price to charge; level of output to produce
C) level of output to produce; total revenue to achieve

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D) price to charge; total cost to achieve
72. Molly the Monopolist faces an elastic demand curve. If she decreases price, marginal revenue will be

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and total revenue will .
A) positive; rise B) positive; fall
C) negative; rise D) negative; fall

ac
73. Consumer surplus is:
A) equal to price minus marginal cost
B) less in the case of single price monopoly than in the case of a perfectly competitive industry

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C) zero for a single-price monopolist
D) positive in the case of a monopolist practicing perfect price discrimination
co
74. Compared to a competitive industry, a monopoly transfers:
A) consumer surplus to producers
B) producer surplus to consumers
,
50

C) deadweight loss away from producers to consumers

D) deadweight loss away from consumers to producers
75. Firms in an oligopoly:
00

i. are independent of each other’s actions

ii. can each influence the market price
48

iii. charge a price equal to marginal revenue

A) i only B) i and iii only
C) ii only D) i and ii only
00

76. Opportunity cost, most broadly define, is

A) the additional cost of producing an additional unit of output.
81

B) what we forgo, or give up, when we make a choice or a decision.

C) a cost that cannot be avoided, regardless of what is done in the future.
D) the additional cost of buying an additional unit of a product.
in,

77. The accelerator theory of investment says that induced investment is determined by
A) the rate of change of national income. B) expectations.
C) the level of national income. D) the level of aggregate demand.
e.

78. As the MPS increases, the multiplier will

ur

A) increase.
B) either increase or decrease depending on the size of the change in investment.
C) remain constant.
us

D) decrease.
79. For which of the following market structures is it assumed that there are barriers to entry?
ed

A) Perfect competition B) Monopolistic competition

C) Monopoly D) All of the above

[8] PG-QP–44
80. A market with few entry barriers and with many firms that sell differentiated products is:

in
A) Purely competitive. B) A monopoly.
C) Monopolistically competitive. D) Oligopolistic.

e.
81. A Giffen good:
A) Is a good that people buy more of as their incomes fall.

ur
B) Is a good which people buy more of as its price increases.
C) Is a good on which people spend a small portion of their income.

us
D) Has a vertical demand curve.
82. Fiscal policy refers to:

ed
A) The actions of the central bank in controlling the money supply.
B) The spending and taxing policies used by the government to influence the economy.
C) The government's regulation of financial intermediaries.

t@
D) None of the given options.
83. An increase in the demand of the imported commodity subject to a given import quota;
A) reduces domestic quantity demanded of the commodity

ac
B) increases the domestic production of the commodity
C) reduces domestic price of the commodity
D) reduces the producer’s surplus

nt
84. If a nation gains from trade, its consumption point is
A) on its production possibilities frontier
B) inside its production possibilities frontier
co
C) above its production possibilities frontier
D) at the production point
,
50

85. A country possesses a comparative advantage in the production of a product if

A) the opportunity cost, in terms of the amount of other products that it gives up to produce this
00

product, is lower than it is for its trading partners.

B) it possesses an absolute advantage in the production of this good compared to its trading
partners.
48

C) it is able to produce less of this good per worker than its trading partners.
D) it can produce more of this good per hour than its trading partners.
86. Which of the following is NOT a proposition of the Heckscher-Ohlin model?
00

A) A country has a comparative advantage in the production of that commodity which uses more
intensively the country's more abundant resource.
B) The effect of international trade is to tend to equalize factor prices between the trading nations.
81

C) If the United States is a skilled labor abundant country, then the United States has a comparative
advantage in the production of goods that use skilled labor more intensively.
D) Countries will completely specialize in the product in which they have a comparative advantage if
in,

free trade is allowed to occur.

87. The Heckscher – Ohlin trade theory explains most of the trade;
e.

A) Among industrial countries

B) Between developing countries.
ur

C) Between developing and developed countries

D) All of the above
us

88. We say that commodity Y is K-intensive with respect to X when:

A) More K is used in the production of Y than X
B) Less L is used in the production of Y than X
ed

C) A lower L/K ratio is used in the production of Y than X

D) A higher K/L is used in the production of X than Y

[9] PG-QP–44
89. Reserve money is the sum of

in
A) Currency + Demand Deposits + Total Reserves
B) Currency + Time Deposits + Required Reserves

e.
C) Currency + Total Reserves
D) Currency + Required Reserves

ur
90. Which of the following statement is not true with reference to RBI’s Sixth bi-monthly Monetary Policy
Statement for 2017-18 announced on 7th February, 2018.

us
A) Cash Reserve Ratio (CRR) 4 % B) Repo Rate 6 %
C) Bank Rate at 6.25% D) Reverse Repo Rate 7.25 %

ed
91. The process by which RBI or any Central bank protects the economy against adverse economic
shocks is known as
A) Protection B) Liberalization

t@
C) Stabilization D) Sterilization
92. Which of the following is not an asset held by commercial bank?
A) Bills of exchange B) Current account deposits

ac
C) Money lent at short notice D) Credit balances with central bank
93. Which among the following Industrial Policy was based upon the Mahalanobis Model of growth?

nt
A) Industrial Policy Resolution – 1956 B) Industry Policy Statement 1973
C) Industrial Policy Statement 1977 D) None of them
co
94. The Mahatma Gandhi National Rural Employment Guarantee Act mandates at least what fraction of
the beneficiaries to be women?
A) 25% B) 30%
,
C) 45% D) 50%
50

95. India’s first operational special economic zone (SEZ) is located at?
A) Ahamadabad B) Surat
00

C) Indore D) Jaipur
96. India had a plan holiday
48

A) After the China-India war of 1962 B) After the India-Pakistan war of 1965
C) After the Drought of 1966 D) None of the above
00

97. Rolling plan was designed for the period

A) 1966-69 B) 1978-83
C) 1975-80 D) 1982-86
81

98. National Food for Work Programme, was launched in 150 districts of India in 2004. Later this
programme was subsumed in which among the following programmes?
A) Sampoorna Grameen Rozgar Yojna B) Mahatma Gandhi NREGA
in,

C) Pradhan Mantri Rozgar Yojna D) None of them

99. Indian Green revolution is the most successful in
e.

A) Wheat and Potato B) Jwar and Oil seeds

C) Tea and coffee D) Wheat and Rice
ur

100. Match the following pairs

1. Labour theory of value I. Hechscher-Ohlin theory
us

2. Concept of opportunity cost II. Offer Curve

3. Differences in factor prices III. Ricardian theory
ed

4. Community Indifference Curve IV. Modren theory

A) 1-III, 2-IV, 3-I, 4-II B) 1-IV, 2-I, 3-III, 4-II
C) 1-IV, 2-III, 3-II, 4-I D) 1-I, 2-IV, 3-III, 4-II
[ 10 ] PG-QP–44
 in
e.
ur
CUET 2018

s
du
1 B 26 C 51 B 76 B
2 A 27 D 52 D 77 C

|e
3 A 28 A 53 C 78 D

1|
4 C 29 C 54 C 79 C
5 D 30 B 55 B 80 C

/0
6 A 31 B 56 D 81 B

00
7 A 32 C 57 D 82 B
8 B 33 D 58
46 B 83 B
9 C 34 C 59 D 84 C
82
10 D 35 C 60 A 85 A
11 B 36 C 61 A 86 D
00

12 C 37 C 62 C 87 C
81

13 B 38 A 63 A 88 C
14 B 39 C 64 B 89 D
15 A 40 A 65 C 90 D
||

16 C 41 A 66 A 91 D
in

17 C 42 C 67 D 92 B
e.

18 C 43 C 68 B 93 A
ur

19 A 44 B 69 A 94 B
us

20 D 45 C 70 D 95 C
21 B 46 B 71 B 96 C
ed

22 B 47 B 72 A 97 B
23 A 48 C 73 B 98 A
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24 A 49 D 74 A 99 D
25 B 50 B 75 C 100 A
ac
nt
co
 PART–B

in
26. The average product curve reaches its maximum when
(A) Marginal product is maximum

e.
(B) Marginal product is minimum
(C) Marginal product equals average product.

ur
(D) Marginal product is below average product
27. Which of the following state in India has the highest overall life expectancy at birth?

us
(A) Maharashtra (B) Punjab
(C) Gujarat (D) Kerala

ed
28. According to the Solow Model, ______ is a function of capital.
(A) Labour (B) Competition

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(C) Output (D) Technology
29. The Government of India has established NITI Aayog to replace the
(A) Human Rights Commission (B) Finance Commission

ac
(C) Law Commission (D) Planning Commission
30. A firm is supposed to shut down in the short run if

nt
(A) Price is below average fixed cost (B) Price is below average variable cost
(C) Price is below average total cost (D) Price is below marginal cost

(A) RBI and the Government

co
31. Open Market Operations are the purchase and sale of securities between
(B) Government and the Market
(C) RBI and the market (D) Government and the public
,
50

32. When a matrix is multiplied by an identity matrix, we obtain the

(A) Inverse matrix. (B) Transpose matrix.
(C) Cofactor matrix. (D) Original matrix.
00

33. In the case of a negative externality, the social marginal cost will
(A) Exceed the private marginal cost. (B) Be less than private marginal cost.
48

(C) Be equal to private marginal cost. (D) Have no relation to private marginal cost.
34. The slope of the consumption curve represents
00

(A) Average propensity to consume (B) Marginal propensity to consume

(C) Marginal propensity to save (D) Level of consumption in the economy
35. Given the following data set, what is the value of the median? [ 2 4 3 6 1 8 9 2 5 7 ]
81

(A) 2 (B) 4.7

(C) 4.5 (D) 10
in,

36. In which approach to probability the outcomes are equally likely to occur?
(A) Objective probability (B) Classical Probability
(C) Subjective Probability (D) Relative Frequency
e.

37. A firm in a perfectly competitive market will continue its production until
ur

(A) Total revenue is less than total cost.

(B) The total revenue curve is rising.
(C) The marginal revenue curve is rising.
us

(D) Marginal revenue is equal to marginal cost.

38. The size of the expenditure multiplier increases with an increase in
ed

(A) Government transfer payments (B) The income tax rate

(C) The marginal propensity to save (D) Marginal propensity to consume

[4] PG-QP–44
39. The book ‘Economic History of India’ which states that ‘if India is poor today it is through the operation

in
of economic causes’,is written by?
(A) Justice Mahadev Govind Ranade (B) Dada bhai Naoroji

e.
(C) Romesh Chunder Dutt (D) M. N. Roy
40. Which of the following is an identity matrix?

ur
⎡ 1 0⎤
⎡1 1⎤ ⎡1 0⎤ ⎡ 0 1⎤ ⎢ ⎥

us
(A) ⎢ ⎥ (B) ⎢ ⎥ (C) ⎢ ⎥ (D) ⎢ 0 1⎥
⎣1 1⎦ ⎣ 0 1⎦ ⎣1 0⎦ ⎢⎣ 2 0⎥⎦

ed
41. A Pareto efficient equilibrium makes:
(A) Fair distribution of income.
(B) Someone better off will make someone else better off.

t@
(C) Someone better off will make someone else worse off.
(D) Supply equals demand.

ac
42. Which of the following states that higher incomes in middle age are associated with higher savings
ratios to finance consumer expenditures in retirement.
(A) Rational Expectations (B) Keynesian Consumption Function

nt
(C) Life–Cycle Hypothesis (D) Permanent Income Hypothesis
43. A unique characteristic of the oligopolistic market structure is
(A) Low barriers to entry.
(C) Product differentiation.
, co(B) A large number of firms.
(D) Interdependence among firms.
44. Which of the following organizations looks after the credit needs of agriculture and rural development
50

in India?
(A) FCI (B) IDBI
(C) NABARD (D) ICAR
00

45. Linear Programming theory states that the optimal solution to any problem will lie at
(A) The origin of the feasible region.
48

(B) A corner point of the feasible region.

(C) The highest point of the feasible region.
(D) The lowest point in the feasible region.
00

46. A graph showing all the combinations of capital and labour that can be used to produce a given
amount of output is:
81

(A) A production function. (B) An isocost line.

(C) An isoquant. (D) An indifference curve.
47. Coefficient of correlation will be always
in,

(A) Between –1 and + 1 (B) Between 0 and 1

(C) Between 0 and –1 (D) More than 0
e.

48. The private market will not provide enough of a pure public good because of
(A) Negative externalities (B) Public choice not to produce the good
ur

(C) Special interest lobbies (D) The free rider problem

49. When the price of good X rises, the demand for good Y falls. Therefore goods X and Y are
us

(A) Substitutes. (B) Normal goods.

(C) Complements. (D) Inferior goods.
50. According to Keynes, the consumption expenditure is a function of
ed

(A) Permanent income. (B) Relative income.

(C) Transitory income. (D) Disposable income.

[5] PG-QP–44
51. The collection of one or more outcomes from an experiment is called

in
(A) Probability (B) Event
(C) Random Variable (D) Random Experiment

e.
52. Which of the following estimates the National Income in India?
(A) Central Statistical Organization (B) National Income Committee

ur
(C) Planning commission (D) Reserve Bank of India
53. For a consumer the marginal utilities of commodities X and Y are 50 and 100, and the price of Y is

us
Rs.20. If the consumer is in equilibrium the price of X will be
(A) Rs.40 (B) Rs.10 (C) Rs.15 (D) Rs.5

ed
54. In which of the following the exchange rates are determined by the relative demand and supply of
currencies

t@
(A) Fixed exchange rate system (B) Floating exchange rate system
(C) Crawling peg system (D) Adjustable peg system
55. The marginal propensity to consume in a two–sector model is given as 0.8.The expenditure multiplier

ac
value will be
(A) 0.2 (B) 5.0 (C) 4.0 (D) 0.02

nt
56. Super multiplier refers to
(A) Money multiplier (B) Budget multiplier
(C) Reciprocal of MPC
co
(D) Interaction of the multiplier and accelerator
57. The situation where the output increases by less than proportional change in all inputs is called
(A) Decreasing returns to scale. (B) Economies of scale
,
(C) Constant returns to scale. (D) Increasing returns to scale.
50

58. The sum of currency held by public, the reserves with the central bank, and other deposits with the
central bank refers to
00

(A) High–powered money (B) Broad money

(C) Narrow money (D) Money illusion
48

59. The Philips curve indicates the association of

(A) High inflation rates and low money wage rates
(B) Low employment rates and low rates of inflation
00

(C) High inflation rates and high money wage rates

(D) High unemployment rates and low rates of inflation
81

60. The total revenue function of a monopolist with the marginal revenue function MR = 10 – 4Q is
1 1 1 2 1 2
(A) 10Q – 2Q2 + c
2
(B) 5Q – 2Q2 + c (C) Q − Q2 + c (D) Q − Q +c
10 2 5 2
in,

61. Which of the following suggests that changes in the price level are directly related to changes in the
money supply?
e.

(A) Liquidity Trap theory (B) Liquidity Preference theory

(C) Quantity Theory of Money (D) Money Supply Multiplier
ur

62. The combinations of interest rates and aggregate output for which the quantity of money demanded
equals the quantity of money supplied is shown in
us

(A) Investment function (B) LM curve

(C) IS curve (D) Money multiplier
ed

63. Let A and B be two events with P(A) = 0.25 and P(B) = 0.5. The probability of both occurring together
is 0.14. Then probability of both A and B not happening is
(A) 0.39 (B) 0.25 (C) 0.11 (D) 0.61
[6] PG-QP–44
64. If the chosen medium of exchange has no intrinsic value and is accepted as money because of faith, it

in
is called
(A) Fiat money (B) Commodity money

e.
(C) Broad money (D) Base money
65. According to the purchasing power parity theory, which of the following would most likely cause

ur
depreciation to a nation’s currency?
(A) An increase in inflation rates of its trading partners

us
(B) A decrease in money supply in the domestic economy
(C) A decrease in domestic interest rate
(D) An increase in the nation’s domestic inflation rate

ed
66. Which of the following is the central nodal agency for implementing the price support operations for
commercial crops in India

t@
(A) NABARD (B) NAFED
(C) FCI (D) TRIFED
67. The Mundell–Fleming model shows that the power of monetary and fiscal policy to influence aggregate

ac
demand depends on the
(A) Political regime (B) Interest rate regime

nt
(C) Central Bank independence (D) Exchange rate regime.
68. The comparative advantage theory of trade is associated with
(A) Adam Smith
(C) Paul Samuelson
co
(B) David Ricardo
(D) Joseph Stiglitz
69. Which of the following is not part of the fiscal policy?
,
50

(A) Government spending (B) Taxation

(C) Money supply (D) Transfer payments
70. The distribution of the overall tax burden between sellers and buyers in an economy is known as
00

(A) Tax incidence (B) Deadweight loss

(C) Optimum taxation (D) Distortion
48

71. According to the theory of comparative advantage, a country should specialize and export goods with
(A) The highest opportunity cost (B) The lowest production cost
(C) The lowest opportunity cost (D) The lowest average cost.
00

72. Which among the following was the main objective of the Fiscal Responsibility and Budget
Management Act, 2003?
81

(A) Eliminate fiscal deficit (B) Eliminate revenue deficit

(C) Eliminate primary deficit (D) Achieve fiscal surplus
73. The value of one currency in terms of another currency is known as
in,

(A) Interest rate. (B) Exchange rate.

(C) Inflation rate. (D) Monetary base.
e.

74. The convexity of indifference curve is because of

(A) Diminishing marginal rate of substitution
ur

(B) Increasing marginal rate of substitution

(C) Constant marginal rate of substitution
us

(D) Constant elasticity of substitution

75. A matrix is said to be singular if
ed

(A) We can find it inverse matrix (B) It has a non–zero determinant

(C) The value of its determinant is zero (D) Both (A) & (B)

[7] PG-QP–44
76. Which of the following transactions does not represent a debit transaction in the balance of payments

in
of a country?
(A) Transfer payments abroad

e.
(B) Exports of goods and services
(C) Dividends and interest paid to foreign residents
(D) Investments and loans to foreigners

ur
77. An equation of the form Yt – 1.2Yt–1 = 0 is a

us
(A) Difference equation (B) Differential equation
(C) Simultaneous equation (D) Proportional equation

ed
78. Urban co–operative banks in India are governed by
(A) Central government (B) State government
(C) Reserve Bank of India (D) Both (B) & (C)

t@
79. The causal relationship between two variables is analysed using
(A) Correlation (B) Regression
(C) Standard deviation (D) Normal distribution

ac
80. Revealed preference theory was proposed by–
(A) J. R. Hicks (B) Marshall

nt
(C) J.M. Keynes (D) Paul A. Samuelson

10 numbers?
(A) 7.7
co
81. The mean of 11 numbers is 7. One of the numbers, 13, is deleted. What is the mean of the remaining

(B) 6.4
(C) 6.0 (D) 5.8
,
50

82. The graphical representation of the relationship between tax rates and absolute revenue raised by the
government through these taxes is known as
(A) Laffer curve (B) Offer curve
00

(C) IS curve (D) LM curve

83. The accelerator effect refers to the effects of
48

(A) Changes in interest rate on investment

(B) Changes in output on investment
(C) Changes in money supply on investment
00

(D) Changes in fiscal deficit on investment

84. In a frequency distribution, if the mean is less than the mode, and the median is greater than the mean
81

but less than the mode, the distribution is considered to be:

(A) Symmetrical.
(B) Negatively skewed.
in,

(C) Positively skewed.

(D) Open ended.
85. The systematic record of all economic transactions between the residents of a country and the rest of
e.

the world for a specified period of time is known as

(A) Balance of Trade
ur

(B) Balance of Payments

(C) National Account Statistics
us

(D) Net Factor Income from Abroad

86. If the occurrence of one event means that another cannot happen, then the events are
ed

(A) Independent (B) Mutually Exclusive

(C) Bayesian (D) Empirical

[8] PG-QP–44
87. The portion of deposits banks have to park with Reserve Bank of India is known as

in
(A) Capital adequacy ratio (B) Statutory liquidity ratio
(C) Cash reserve ratio (D) Cash deposit ratio

e.
88. The likelihood of two events happening together is known as
(A) Conditional probability (B) Joint probability

ur
(C) Subjective probability (D) Theoretical probability
89. The sampling distribution of the mean is a distribution of

us
(A) Statistics. (B) Parameters
(C) Individual population values. (D) Individual sample values.

ed
90. Which among the following is not an indirect tax?
(A) Corporate tax (B) Service tax

t@
(C) Customs duty (D) Value added tax
91. The parameter that determines the shape of the chi–square distribution is known as
(A) The mean. (B) The variance.

ac
(C) The standard deviation.. (D) Degrees of freedom.
92. Primary deficit in a budget indicates

nt
(A) Revenue expenditure – revenue receipts (B) Capital expenditure – capital receipts
(C) Total market borrowings of the government (D) Fiscal deficit – interest payments

(A) Economies of large–scale production.

co
93. The Heckscher–Ohlin theory explains comparative advantage as the result of differences in countries’:
(B) Relative factor endowments.
(C) Relative costs of labor. (D) Research and development expenditures.
,
50

94. A discrete probability distribution may be represented by:

(A) A Table (B) A Graph
(C) A mathematical equation (D) All of the above
00

95. The Direct Taxes Code is related to

(A) Income tax (B) Sales tax
48

(C) Customs duty (D) Service tax

96. About the independent events A and B it is known that P(A|B) = 0.2 and P(B|A) = 0.5. Compute the
00

probability P(A∪B).
(A) 0.7 (B) 0.2 (C) 0.4 (D) 0.6
81

97. Autarky is a situation of

(A) Bilateral trade (B) Free trade (C) No trade (D) Multilateral trade
98. Which of the following applies to ‘externalities’?
in,

(A) They are the private costs of economic behaviour.

(B) They are always negative.
(C) They are not normally reflected in the market price of a product.
e.

(D) They are always responsible for a welfare loss.

99. The total reduction in output due to the imposition of a tax is known as
ur

(A) Deadweight loss (B) Liquidity trap

(C) Implicit cost (D) Total cost
us

100. The difference between what a consumer is willing to pay and what the consumer actually pays to buy
a commodity is called
ed

(A) Marginal rate of substitution (B) Producer surplus

(C) Consumer surplus (D) Deadweight loss

[9] PG-QP–44
 in
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CUET 2019

s
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1 A 26 C 51 B 76 B
2 A 27 D 52 A 77 A

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5 B 30 B 55 B 80 D

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7 D 32 D 57 A 82 A
8 B 33 A 58
46 A 83 B
9 A 34 B 59 D 84 B
82
10 A 35 C 60 A 85 B
11 A 36 B 61 C 86 B
00

12 B 37 D 62 B 87 C
81

13 D 38 D 63 A 88 B
14 C 39 C 64 A 89 B
15 B 40 B 65 A 90 A
||

16 B 41 C 66 B 91 D
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17 A 42 C 67 D 92 A
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18 C 43 B 68 B 93 B
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19 D 44 C 69 C 94 A
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20 B 45 C 70 A 95 A
21 A 46 C 71 C 96 D
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22 B 47 A 72 B 97 C
23 C 48 D 73 B 98 C
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24 D 49 C 74 A 99 C
25 C 50 D 75 C 100 C
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