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

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

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

CUET 2024 Economics Question Paper with Solution Set D

Question	Answer	Detailed Solution
1. 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.
2. 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 industrializing 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.	2. (A) - (II), (B) - (III), (C) - (I), (D) - (IV)	(A) Great Leap Forward aimed at industrializing China on a massive scale (II). (B) Mao Zedong introduced the Great Proletarian Cultural Revolution (III). (C) Brundtland Commission focused on protecting future generations (I). (D) Our Common Future defined sustainable development as meeting basic needs (IV).
3. 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, from the mid 1970s to mid 1980s, focused on the spread of high-yielding varieties and improved agricultural practices.
4. 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	In the 1980s, Pakistan's economic growth was largely driven by good harvests, especially in agriculture, which contributed significantly to the overall growth rate.
5. 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 unplanned decumulation of inventories as goods are sold faster than anticipated, reducing stock levels.
6. European Monetary Union was created in __________. 1. 1996 2. 1994 3. 1999 4. 2002	3. 1999	The European Monetary Union (EMU) was created in 1999, marking the introduction of a common currency (the euro) and economic policy coordination among member states.
7. 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 (household and firms), firms are responsible for producing goods and services, which are then consumed by households in exchange for factor services.
8. 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.	2. (A) and (C) only	Ex Ante saving refers to the saving that is planned (A), while Ex Post saving depicts the actual saving that has occurred (C).
9. 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	2. (A) - (III), (B) - (I), (C) - (IV), (D) - (II)	(A) Annual Financial Statement is the main budget document (III). (B) Capital receipts involve creating liabilities or reducing financial assets (I). (C) Capital payments involve creating financial assets or reducing liabilities (IV). (D) Export > Import is a trade surplus (II).
10. 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, which in turn reduces the amount of waste civic authorities need to dispose of.
11. 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.	Earthworm-based composting is faster compared to traditional composting processes, as worms accelerate the breakdown of organic matter.
12. 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	Water bodies have been harmed mainly due to chemical pollution and the increased use of water for irrigation, leading to depletion and contamination.
13. 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 certain areas, cattle are primarily maintained for their dung, which serves as a valuable fertilizer and soil conditioner.
14. 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 emphasizes the use of cattle dung as an important resource for biocomposting, making "Biocomposting" a suitable title.
15. 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 colonial rule, India was renowned for its cotton and silk textiles, along with metal and precious stone crafts.
16. 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 British colonial government was primarily focused on protecting and promoting the economic interests of Britain, often at the expense of Indian industries.
17. Choose the economists who estimated India's National Income and Per Capita Income: 1. Dadabhai Naoroji, William Digby, Bernier, V.K.R.V. Rao and 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 the estimation of India's National Income and Per Capita Income, notably through the early work of Naoroji and Digby.
18. 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 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.	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.	During the first half of the 20th century, India's growth of aggregate output was slow, with a minimal increase in per capita output.
19. 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 crafts, were known globally for their high quality and craftsmanship before colonial rule.
20. ___________ 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	In a market economy, economic agents (consumers and producers) can freely exchange goods, services, and factors of production.
21. 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 :	2. (A), (C), and (E) only	Statements (A), (C), and (E) are true. Marginal Utility is the additional satisfaction from consuming one more unit, and an indifference curve slopes downward.
22. 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 :	2. (A) - (I), (B) - (III), (C) - (II), (D) - (IV)	Equilibrium occurs when demand and supply match, excess supply happens when supply exceeds demand, inferior goods have decreasing demand as income rises, and price ceilings set an upper limit on prices.
23. 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 is a demand curve where elasticity is constant and equal to 1 at every point.
24. 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	The budget constraint represents the combinations of goods a consumer can afford given their income and the prices of goods.
25. 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:	2. (A), (B) and (C) only	Adam Smith is known as the Father of Modern Economics, Keynes contributed significantly to economic theory, and the four-sector model is a key equation for GDP.
26. 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)	The correct order starts with Adam Smith’s work, followed by Keynes’ early work, his later work, and Mahalanobis' recognition.
27. 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	In a closed economy without government or foreign trade, all these variables would be zero (no government spending, no taxes, no imports/exports).
28. 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 Nominal GDP / Real GDP, so 1100 / 1000 = 1.1.
29. 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:	3. (B), (D) and (E) only	Stocks are defined at a specific point in time, while flows are defined over a period, and GVA adjustments provide market prices.
30. 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	When the supply is infinitely elastic, the aggregate output depends entirely on the level of aggregate demand, which is the concept of effective demand.
31. 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 the sum of the real interest rate and the inflation rate.
32. 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 decreases when the Marginal Propensity to Save (MPS) increases, as more income is saved rather than spent.
33. Paradox of Thrift means: 1. Increased savings leads to economic growth. 2. Increased savings leads to increased investment. 3. Increased savings leads to increased production. 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 if everyone increases their savings, it reduces consumption, which in turn decreases demand and leads to lower economic activity, thereby not increasing total savings.
34. What depicts what has actually happened? 1. Ex-Ante 2. Ex-Post 3. Forecast 4. Planned Event	2. Ex-Post	Ex-Post describes what actually occurred based on observed results, in contrast to Ex-Ante, which refers to forecasts or planned events.
35. If the value of Investment Multiplier is 5 and the increased income is ₹800 crore in an economy, then find the value of change in the investment in the economy. 1. ₹80 crore 2. ₹400 crore 3. ₹120 crore 4. ₹160 crore	4. ₹160 crore	The investment multiplier formula is: Income Change = Change in Investment × Multiplier. Given a multiplier of 5 and a change in income of ₹800 crore, the change in investment is ₹800 / 5 = ₹160 crore.
36. 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)	Statement (A) is correct because the CRR change influences the lending capacity of banks. Statement (D) is correct because bond sales reduce reserves. Statement (E) is correct as RBI can adjust interest rates to affect liquidity and money supply.
37. 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)	(A) Bank Rate: (II) Minimum rate at which funds are provided for long term. (B) Marginal Standing Facility: (III) Also known as Penal Interest Rate. (C) Repo Rate: (I) Securities are pledged in order to repurchase. (D) Reverse Repo Rate: (IV) Central Bank borrows funds from commercial banks.
38. 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 gives loans to people. 4. It issues the currency of the country.	3. It accepts deposits and gives loans to people.	The Central Bank controls monetary policy, acts as a banker to the government and commercial banks, and issues currency. It does not accept deposits or give loans to the general public, as that is the role of commercial banks.
39. Article 112 deals with: 1. It controls the money supply in the economy through different rates. 2. It acts as a banker to the government. 3. Union Budget. 4. It issues the currency of the country.	3. Union Budget	Article 112 of the Indian Constitution deals with the Union Budget, outlining the government's receipts and expenditure plans for the fiscal year.
40.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.
41. 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	2. (D), (B), (A), (C)	The chronological order is: (D) Gold Standard (before WWI), (B) Bretton Woods Conference (1944), (A) Smithsonian Agreement (1971), and (C) Establishment of WTO (1995).
42. 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 of domestic currency occurs when its value increases relative to foreign currencies under a flexible exchange rate system.
43. 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	2. (A) - (II), (B) - (III), (C) - (I), (D) - (IV)	(A) Pegged exchange rate system is a fixed exchange rate system (II). (B) Managed floating refers to dirty floating (III). (C) Bretton Woods Conference set up the IMF and World Bank (I). (D) Third element in BOP refers to the Error and Omission Account (IV).
44. Casualization of the workforce would result in: 1. Decrease in the vulnerability of the workforce. 2. Increase in the vulnerability of the workforce. 3. Increase in the number of regular workers. 4. Income and employment stability.	2. Increase in the vulnerability of the workforce.	Casualization of the workforce leads to increased vulnerability due to instability in employment and lack of job security for workers.
45. 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	4. (D), (C), (A), (B)	The correct chronological sequence is: (D) Nationalization of RBI (1949), (C) Third Five Year Plan (1961-66), (A) Establishment of NABARD (1982), (B) FRBMA (Fiscal Responsibility and Budget Management Act, 2003).
46. __________ 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 refers to the ability of an ecosystem to support a population at a sustainable level without degrading the environment.
47. 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 – 14	The Right to Education Act guarantees free and compulsory education to children in the age group of 6 to 14 years.
48. 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	4. (B), (D), (C), (A)	Thermal power has the highest capacity, followed by Hydro, New and renewable energy, and Nuclear power in terms of generation capacity in India.
49. Arrange the following items in the correct sequence: (A) Competition Act (B) FEMA (C) FERA (D) MRTP	3. (D), (C), (B), (A)	The correct sequence is: (D) MRTP (1969), (C) FERA (1973), (B) FEMA (1999), (A) Competition Act (2002).
50. The Great Leap Forward (GLF) campaign was initiated in: 1. 1948 2. 1938 3. 1958 4. 1942	3. 1958	The Great Leap Forward was a campaign initiated by Mao Zedong in 1958 to rapidly industrialize and collectivize China.