CUET Economics Question Paper 2024 SET C Download Solutions and Answer Key

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CUET 2024 Economics Question Paper (SET C) with Answer Key and Solution PDF

CUET 2024 Economics Question Paper (SET-C)	Download	Check Solution

CUET 2024 Economics Question Paper with Solution Set C

Question	Answer	Detailed Solution
1. Casualization of the workforce would result in: (1) Decrease in the vulnerablility of the workforce. (2) Increase in the vulnerability of the workforce. (3) Increase in the number of regular workers. (4) Income and employment stablility.	(2) Increase in vulnerability of the workplace .	Casualization leads to less job security and increased vulnerability for workers.
2. Choose the correct chronological sequence in ascending order (earliest to latest): (A) Establishment of NABARD (B) FRBMA (C) Third Five Year Plan (D) Nationalization of RBI (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 sequence is: Nationalization of RBI, Third Five Year Plan, NABARD establishment, FRBMA.
3.Under a flexible exchange rate, when the price of domestic currency in terms of foreign currency increases, it is called: (1) Depreciation of domestic currency (2) Appreciation of domestic currency (3) Devaluation of domestic currency (4) Revaluation of domestic currency	(2) Appreciation of domestic currency	Appreciation occurs when domestic currency value rises in terms of foreign currency.
4.Match List-I with List-II: List-I: (A) Pegged exchange rate system (B) Managed floating (C) Bretton Woods Conference (D) Third element in BOP List-II: (I) Setting up of IMF and World Bank setup (II) Fixed exchange rate system (III) Dirty floating (IV) Error and Omission Account (1) (A) - (II), (B) - (I), (C) - (III), (D) - (IV) (2) (A) - (II), (B) - (III), (C) - (I), (D) - (IV) (3) (A) - (I), (B) - (II), (C) - (IV), (D) - (III) (4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)	(2) (A) - (II), (B) - (III), (C) - (I), (D) - (IV)	Pegged exchange is fixed, managed floating is dirty floating, Bretton Woods created IMF and World Bank, Error and Omission is the third element in BOP.
5.__________ implies that resource extraction is not above the rate of regeneration of resources and the wastes generated are within the assimilating capacity of the environment. (1) Absorptive capacity (2) Carrying capacity (3) Subsistence capacity (4) Exhaustive capacity	(2) Carrying capacity	Carrying capacity ensures extraction does not exceed regeneration and waste remains within environmental limits.
6. The Government of India enacted the Right to Education Act in 2009 to make free education a Fundamental Right of all children in the age group of __________ years. (1) 4 – 10 (2) 6 – 12 (3) 6 – 14 (4) 8 – 15	(3) 6 to 14	The RTE Act guarantees free and compulsory education for children aged 6 to 14.
7. Following are the sources of electricity generation in India. Arrange them in correct sequence on the basis of total power generation capacity (higher to lower) : (A) Nuclear (B) Thermal (C) New and renewable energy (D) Hydro (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)	The order is: Thermal, Hydro, New and renewable energy, Nuclear.
8.Arrange the following items in the correct sequence: (A) Competition Act (B) FEMA (C) FERA (D) MRTP Choose the correct answer from the options given below : (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 is MRTP, FERA, FEMA, and then Competition Act.
9. The Great Leap Forward (GLF) campaign was initiated in __________. (1) 1948 (2) 1938 (3) 1958 (4) 1942	(3) 1958	The GLF was initiated in China in 1958 by Mao Zedong.
10. Match List-I with List-II: List-I: (A) Great Leap Forward (B) Mao Zedong (C) Brundtland Commission (D) Our Common Future List-II: (I) Protecting future generation (II) Aimed at industralising the country on a massive scale (III) Introduced the Great Proletarian Cultural Revolution (IV) Seminal Report that explained sustainable development as meeting the basic needs of all for a better life. Choose the correct answer from the options given below : (1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV) (2) (A) - (II), (B) - (III), (C) - (I), (D) - (IV) (3) (A) - (I), (B) - (II), (C) - (IV), (D) - (III) (4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)	(2) (A) - (II), (B) - (III), (C) - (I), (D) - (IV)	The Great Leap aimed at industrialization, Mao led the Cultural Revolution, Brundtland focused on sustainable development.
11. The second phase of the Green Revolution is termed from: (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 was from mid-1970s to mid-1980s.
12. During the 1980s, the growth rate in Pakistan improved on account of which of the following reasons? (1) Institutionalised process of technical change (2) A good harvest (3) Sustainable export of manufactured goods (4) High amount of foreign direct investment inflow	(2) A good harvest	Pakistan’s economic growth in the 1980s was significantly boosted by a series of good harvests in the agriculture sector.
13. When there is an unexpected rise in sales __________. (1) Aggregate demand would decline. (2) There will be unplanned accumulation of inventories. (3) There will be unplanned decumulation of inventories. (4) Normal profit would be lower	(3) There will be unplanned decumulation of inventories.	An unexpected rise in sales leads to a depletion of inventory as more goods are sold than anticipated.
14. During the festive season, the currency deposit ratio __________. (1) decreases (2) increases (3) has no impact on it (4) first decreases then increases	(2) increases	During festivals, people withdraw more cash, leading to an increase in the currency deposit ratio.
15. European Monetary Union was created in __________. (1) 1996 (2) 1994 (3) 1999 (4) 2002	(3) 1999	The European Monetary Union, which introduced the Euro, was established in 1999.
16. Identify the correct statement in the context of Circular Flow of Income in a two-sector economy: (1) Household receives factor services from firms. (2) Household invests while firm saves. (3) Firms produce goods and services. (4) Household supplies factor services to Government	(3) Firms produce goods and services	In a two-sector economy model, firms produce goods and services, while households provide labor and consume goods.
17. Identify the correct set of statements: (A) Ex Ante Saving represents what is actually planned to save. (B) Ex Post Saving represents what is actually planned to save. (C) Ex Post Saving depicts what has actually happened. (D) Ex Ante Post Saving represents what is actually saved. Choose the correct answer from the options given below : (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 saving, while Ex Post Saving is the actual amount saved.
18. Match List-I with List-II: List-I: (A) Annual Financial Statement (B) Capital Receipts (C) Capital Payment (D) Export > Import List-II: (I) Create liabilities or reduce financial assets (II) Trade surplus (III) Main budget document (IV) Create financial assets or reduce liabilities Choose the correct answer from the options given below : (1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV) (2) (A) - (III), (B) - (I), (C) - (IV), (D) - (II) (3) (A) - (I), (B) - (II), (C) - (IV), (D) - (III) (4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)	(2) (A) - (III), (B) - (I), (C) - (IV), (D) - (II)	The Annual Financial Statement is the main budget document, Capital Receipts create liabilities, Capital Payments create assets or reduce liabilities, and Export > Import denotes a trade surplus.
19. How is civic authority getting benefited due to biocomposting? (1) They have to dispose increased quantity of waste. (2) They don’t have to dispose any waste. (3) Because civic authority has no role in waste management. (4) They have to dispose reduced quantity of waste.	(4) They have to dispose reduced quantity of waste.	Biocomposting reduces the volume of waste needing disposal, benefiting civic authorities by lowering landfill demand.
20. Choose the correct statement concerned with the passage: (1) Earthworm takes equal time to convert organic matter into compost with respect to normal composting process. (2) Earthworm takes more time to convert organic matter into compost with respect to normal composting process. (3) Earthworm takes less time to convert organic matter into compost with respect to normal composting process. (4) Comparison between earthworm based composting and normal composting cannot be made.	(3) Earthworm takes less time to convert organic matter into compost with respect to normal composting process.	Earthworms accelerate the breakdown of organic matter, making the composting process faster.
21. Water bodies, including the groundwater system, have suffered due to: (1) Biocomposting (2) Chemical contamination and increased demand for irrigation (3) Organic farming (4) Increased fertility of land	(2) Chemical contamination and increased demand for irrigation	The excessive use of chemicals and high irrigation demand have led to water contamination and depletion.
22. In certain parts of the country, cattle are maintained only because they __________. (1) Produce milk to increase income of farmers (2) Produce dung which is an important fertilizer and soil conditioner (3) Work as insect repellants (4) Are a symbol of traditional ethics and values	(2) Produce dung which is an important fertilizer and soil conditioner	In some areas, cattle are kept primarily for their dung, which is used as organic fertilizer and soil conditioner.
23. What should be the suitable title for the above passage? (1) Biocomposting (2) Biopest Control (3) Traditional Knowledge and Practice (4) Uses of Chemical Fertilizers	(1) Biocomposting	The passage discusses biocomposting, its process, and benefits, making it the most suitable title.
24. Before the British rule, India was well known for which manufacturing industries’ products? (1) Cotton and Silk or Khadi textiles (2) Cotton and Engineering products (3) Cotton and Silk textiles, metal and precious stones, etc (4) Engineering goods and precious metals	(3) Cotton and Silk textiles, metal, and precious stones , etc.	Before British rule, Indian craftsmanship in textiles, metalwork, and precious stones was globally renowned.
25. What kind of interests was the colonial government concerned with in the economic policy for Indian industries? (1) To promote the handicraft industries of India (2) Promote and protect small scale industries of India (3) Protect and promote the economic interests of Indian industry along with their home country (4) Provide protection and promotion of the economic interests of their home country	(4) Provide protection and promotion of the economic interests of their home country	The colonial policies primarily aimed to benefit Britain’s economy rather than developing Indian industries.
26. Choose the economists who estimated India's National Income and Per Capita Income: (1) Dadabhai Naoroji, William Digby, Bernier, V.K.R.V. Raoand R.C. Desai (2) Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao and R.C. Desai (3) Dadabhai Naoroji, Jagdish Bhagwati, V.K.R.V. Rao and R.C. Desai (4) Dadabhai Naoroji, Findlay Shrirras and V.K.R.V. Rao	(2) Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao, and R.C. Desai	These economists contributed to estimating India's National and Per Capita Income during the colonial period.
27. What was the country’s growth of aggregate real output during the first half of the 20th century? (1) The country’s growth of aggregate real output was less than two percent coupled with a meagre one percent growth in per capita output per year. (2) The country’s growth of aggregate real output was less than two percent coupled with a meagre one and a half percent growth in per capita output per year. (3) The country’s growth of aggregate real output was less than two and a half percent coupled with a meagre halfpercent growth in per capita output per year. (4) The country’s growth of aggregate real output was less than two percent coupled with a meagre half percent growth in per capita output per year.	(4) The country’s growth of aggregate real output was less than two percent coupled with a meagre half percent growth in per capita output per year.	The aggregate real output in India grew at less than 2% annually during the first half of the 20th century.
28.According to the passage, which of the following statements was true about Indian industries’ products? (1) Indian products were of inferior quality and cheap in the worldwide market. (2) Indian products were promoted by the colonial government and competed with other countries’ markets also. (3) Indian products enjoyed a worldwide market based on quality of material used and the high standard of craftsmanship. (4) Indian products’ raw material for primary goods was imported from the other countries and it helped to increase export.	(3) Indian products enjoyed a worldwide market based on quality of material used and the high standard of craftsmanship.	Indian products, especially textiles and metals, were globally valued for their quality before British rule.
29. ___________ is a market where economic agents can freely exchange their endowments with each other. (1) Market economy (2) Centrally planned economy (3) Aggregate demand based economy (4) Aggregate supply based economy	(1) Market economy	A market economy allows free exchange based on demand and supply, unlike a command economy.
30. Which of the following are correct statements? (A) Marginal Utility is the change in Total Utility due to consumption of one additional unit of a commodity. (B) Two Indifference Curves intersect each other. (C) Marginal Utility becomes zero when Total Utility remains constant. (D) Diminishing Marginal Rate of Substitution does not affect the Indifference Curve. (E) Indifference Curve slopes downward from left to right. Choose the correct answer from the options given below : (1) (A), (B) and (E) only (2) (A), (C) and (E) only (3) (A), (D) and (E) only (4) (B), (D) and (E) only	(2) (A), (C), and (E)	Marginal Utility changes with each additional unit consumed, Indifference Curves slope downward, and Marginal Utility is zero when Total Utility is constant.
31. Match List-I with List-II: List-I: (A) Equilibrium (B) Excess supply (C) Inferior good (D) Price ceiling List-II: (I) Plans of all the consumers and firms in the market match (II) Demand decreases with an increase in income (III) Supply is greater than market demand (IV) Imposition of an upper limit by the government Choose the correct answer from the options given below : (1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV) (2) (A) - (I), (B) - (III), (C) - (II), (D) - (IV) (3) (A) - (I), (B) - (II), (C) - (IV), (D) - (III) (4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)	(2) (A) - (I), (B) - (III), (C) - (II), (D) - (IV)	Equilibrium is where demand meets supply; excess supply means more goods than demanded; an inferior good sees less demand as income rises, and a price ceiling is set by the government.
32. When the Elasticity of Demand Curve is 1 at every point on the Demand Curve, this curve is known as: (1) Perfectly inelastic demand curve (2) Perfectly elastic demand curve (3) Rectangular Hyperbola (4) Greater than unitary demand curve	(3) Rectangular Hyperbola	A Rectangular Hyperbola demand curve implies unitary elastic demand, where elasticity is 1 at every point.
33.According to the Theory of Consumer Behaviour, the inequality p1x1+p2x2≤M is called the Consumer's __________. (1) Budget (2) Budget Set (3) Budget Constraint (4) Budget Behaviour	(3) Budget Constraint	This inequality represents the budget constraint, showing the combinations of goods a consumer can afford given their income and the prices of goods.
34. Choose the correct statements from the following : (A) Adam Smith is termed as 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 primary function of money. Choose the correct answer from the options given below : (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	(A) Adam Smith is indeed known as the Father of Modern Economics. (B) J.M. Keynes is famous for the Theory of Income, Output, and Employment. (C) The four-sector model represents consumption (C), investment (I), government spending (G), and net exports (X – M).
35. Rearrange the given statements in proper chronological sequence in an ascending order (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. Choose the correct answer from the options given below : (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)	(C) Adam Smith’s ”Wealth of Nations” was published in 1776. (D) Keynes’s ”The Economic Consequences of the Peace” was published in 1919. (A) Keynes’s ”General Theory of Employment, Interest and Money” was published in 1936. (B) Mahalanobis was made a fellow of Britain’s Royal Society in 1945
36. If there is no government and no foreign trade, then: (1) G = T = M = X > 1 (2) G = T = M = X = 1 (3) G = T = M = X = 0 (4) G = T = M = X < 1	(3) G = T = M = X = 0.	If there is no government and no foreign trade, then government spending (G), taxes (T), imports (M), and exports (X) all equal zero. There would be no government-related economic activity or external trade
37. The value of Nominal GDP is $ 1100 and the value of Real GDP is $ 1000. Find the value of GDP deflator (1) 0.9 (2) 1.1 (3) 1 (4) 0.8	(2) 1.1	The GDP deflator is calculated as GDP Deflator = Nominal GDP Real GDP = 1100/1000 = 1.1.
38. 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. Choose the correct answer from the options given below : (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.	(B) Flows are defined over a period of time. (D) Stocks are defined at a particular point of time. (E) GVA at factor costs plus indirect taxes minus subsidies gives GVA at market prices.
39. If the supply of final goods is assumed to be infinitely elastic at constant price over a short period of time, Aggregate output is determined solely by the value of Aggregate demand. This is called __________ Principle. (1) Aggregate supply (2) Aggregate demand (3) Effective demand (4) Perfectly inelastic demand	(3) Effective demand.	The principle of effective demand states that in the short term, when prices are constant and supply is infinitely elastic, aggregate output is determined by aggregate demand.
40. Nominal Interest Rate =___________ (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 equal to the real interest rate plus the inflation rate, as per the Fisher equation
41. Value of MPS (Marginal Propensity to Save) is increased from 0.4 to 0.5. What would be the impact on Multiplier? (1) The size of the multiplier would be increased. (2) The size of the multiplier would remain same. (3) Value of multiplier is undetermined with the given information. (4) The size of the multiplier would be decreased.	(4) The size of the multiplier would be decreased	The multiplier is inversely related to the MPS. The formula for the multiplier is Multiplier = 1 MPS. When MPS increases from 0.4 to 0.5, the multiplier decreases because the denominator increases.
42. Paradox of Thrift means: (1) If all the people of the economy increase the proportion of income they save, the total value of investment in the economy will not increase, it will either decline or remain unchanged. (2) If all the people of the economy increase the proportion of income they spend, the total value of savings in the economy will not increase, it will either decline or remain unchanged. (3) If all the people of the economy decrease the proportion of income they save, the total value of savings in the economy will not increase, it will either decline or remain unchanged. (4) If all the people of the economy increase the proportion of income they save, the total value of savings in the economy will not increase, it will either decline or remain unchanged.	(4) If all the people of the economy increase the proportion of income they save,the total value of savings in the economy will not increase, it will either decline or remain unchanged.	The Paradox of Thrift suggests that increased savings can reduce economic demand, ultimately reducing total savings.
43. What depicts what has actually happened? (1) Ex-Ante (2) Ex-Post (3) Prediction (4) Forecast	(2) Ex-Post	Ex-Post refers to what has actually happened, in contrast to Ex-Ante, which refers to predictions or plans.
44. If the value of Investment Multiplier is 5 and the increased income is ₹800 crore, then find the value of change in the investment in the economy. (1) ₹4000 crore (2) ₹120 crore (3) ₹400 crore (4) ₹160 crore	(3) ₹400 crore	The change in Investment = Change in Income / Multiplier = ₹800 / 5 = ₹400 crore.
45. Which of the following statements are true? (A) Quantitative tools control the extent of money supply by changing the CRR. (B) There are two types of open market operations – outright and upright. (C) A fall in the bank rate can decrease the money supply. (D) Selling of a bond by RBI leads to a reduction in the quantity of reserves. (E) The RBI can influence money supply by changing the rate at which it gives loans to commercial banks. (1) (A), (C), and (D) (2) (A), (B), and (D) (3) (B), (D), and (E) (4) (A), (D), and (E)	(4) (A), (D), and (E)	Statements (A), (D), and (E) are true, affecting money supply. Statement (B) is incorrect as open market operations do not involve "outright and upright".
46. Match List-I with List-II: List-I: (A) Bank Rate (B) Marginal Standing Facility (C) Repo Rate (D) Reverse Repo Rate List-II: (I) Securities are pledged in order to repurchase (II) Minimum rate at which funds are provided for long term (III) Also known as Penal Interest Rate (IV) Central Bank borrows funds from commercial banks (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)	(2) (A) - (II), (B) - (III), (C) - (I), (D) - (IV)	The Bank Rate is the minimum rate for long-term lending, MSF is a penalty rate, Repo involves pledged securities, and Reverse Repo is borrowing from commercial banks.
47. Which of the following is not a function of the Central Bank? (1) It controls the money supply in the economy through different rates. (2) It acts as a banker to the government (3) It accepts deposits and give loans to people (4) It issues the currency of the country.	(3) It accepts deposits and gives loans to people.	The Central Bank does not provide services to the public directly; this is a role of commercial banks.
48. Article 112 deals with: (1) Consolidated Fund of India (2) Public Account (3) Union Budget (4) Contingency Fund	(3) Union Budget	Article 112 outlines the process for the Union Budget, specifying government financial management for a fiscal year.
49.All those elements which create liability and decrease the assets of government are known as: (1) Capital Receipts (2) Capital Payments (3) Revenue Receipts (4) Revenue Payments	(1) Capital Receipts	Capital receipts increase liabilities or reduce assets, examples include loans and disinvestment proceeds.
50.Arrange the following elements in correct chronological sequence (earliest to latest): (A) Smithsonian Agreement (B) Bretton Woods Conference (C) Establishment of WTO (D) Gold Standard (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 chronological sequence is: Gold Standard, Bretton Woods, Smithsonian Agreement, WTO establishment.