CUET-PG SERIES
Economics

Economics And Economic Theories

51 previous year questions.

Volume: 51 Ques
Yield: High

High-Yield Trend

3
2025
48
2023

Chapter Questions
51 MCQs

01
PYQ 2023
medium
economics ID: cuet-pg-
___school of thought postulates that utility can be measured.
1
Cardinal approach
2
Ordinal approach
3
Indifference curve approach
4
Revealed preference hypothesis
02
PYQ 2023
medium
economics ID: cuet-pg-
The isoquant which asumes strict complementarity of the factors of production is:
1
Linear Isoquant
2
Kinked isoquant
3
Input-output isoquant
4
Smooth convex isoquant
03
PYQ 2023
medium
economics ID: cuet-pg-
Match List-I and List-II
LIST ILIST II
A.Neoclassical theory of investmentI.Keynes
B.q theoryII.Jorgenson
C.Marginal Efficiency of CapitalIII.Samuelson
D.Multiplier-accelerator modelIV.Tobin

Choose the correct answer from the options given below:
1
A-II, B-IV, C-I, D-III
2
A-IV, B-III, C-II, D-I
3
A-IV, B-II, C-I, D-III
4
A-II, B-IV, C-III, D-I
04
PYQ 2023
medium
economics ID: cuet-pg-
Arrange the following in chronological order starting with the earliest :
A. Nationalization of banks
B. Establishment of RBI
C. Launch of MNREGA
D. Second Five Year Plan
E. Establishment of SEBI
Choose the correct answer from the options given below:
1
D, A, B, E, C
2
B, D, A, E, C
3
D, A, B, C, E
4
D, B, A, E, C
05
PYQ 2023
medium
economics ID: cuet-pg-
The following is related to land revenue settlements in colonial India :
A. Bengal and Bihar had Permanent land revenue settlement, UP and Punjab had Ryotwari system and Madras Presidency had Mahalwari system.
B. All regions had the same land revenue settlement.
C. Bengal and Bihar had Permanent settlement and UP had Mahalwari system.
D. Bengal and Bihar had Ryotwari system and Madras Presidency had Mahalwari system.
E. UP and Punjab had Mahalwari system and Deccan and Madras Presidency had Ryotwari system.
Choose the correct answer from the options given below:
1
A, E only
2
C, D only
3
B only
4
C, E only
06
PYQ 2023
medium
economics ID: cuet-pg-
Which of the following relative measures of skewness is based on percentiles?
1
Karl Pearson's coefficient of skewness
2
Bowley's coefficient of skewness
3
Kelly's coefficient of skewness
4
Moment measure of skewness
07
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements:
Statement I: In the short run some factors are fixed while in the long run they become varibale.
Statement II: The payment to an input which is in fixed supply in the short run is called quasi rent.
In the light of the above statements, choose the correct answer from the options given below
1
Both Statement I and Statement II are true
2
Both Statement I and Statement II are false
3
Statement I is true but Statement II is false
4
Statement I is false but Statement II is true
08
PYQ 2023
medium
economics ID: cuet-pg-
Identify the correct statements:
A. As per absolute - income theory of consumption the current consumption expenditure depends upon the current and absolute level of income.
B. The relative - income theory of consumption states the proportion of income consumed by a household depends on the level of its income in relation to the household with which it identifies itself.
C. According to permanent income hypothesis, it is the current income which determines the level of current consumption expenditure.
D. The life cycle theory of consumption was given by Ando and Modigliani
E. The lifecycle hypothesis postulates, that individual consumption in any time period depend upon resources available to individual, the rate of return on his capital and the age of individual.
Choose the correct answer from the options given below:
1
A, B, D and E only
2
A, B and C only
3
A, B, C and D only
4
A and E only
09
PYQ 2023
medium
economics ID: cuet-pg-
STEM: Which of the following is correct?
A. Theory of comparative advantage was given by David Ricardo.
B. As per the theory of comparative advantage, it make sense for a country to specialize in production of these goods that it can produce more efficiently than others.
C. Theory of absolute advantage was given by David Hume.
D. As per the theory of absolute advantage, country should specialize in production of those goods for which they have an absolute advantage and then trade these goods for those produced by other countries.
E. Factor Endowment theory was given by Michael Porter.
Choose the correct answer from the options given below:
1
A, B, D only
2
A, B, E only
3
B, D, E only
4
A, B, C only
10
PYQ 2023
medium
economics ID: cuet-pg-
__is issued by a bank at the request of an importer. It states that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of specified documents.
1
Bill of Exchange
2
Bill of Lending
3
Letter of Credit
4
Bank overdraft
11
PYQ 2023
medium
economics ID: cuet-pg-
Identify the correct sequence of decision involved in developing advertisement programmes.
A. Objective setting
B. Message decision
C. Budget decision
D. Advertising evaluation
E. Media decisions
Choose the correct answer from the options given below:
1
A, C, E, B, D
2
A, B, C, E, D
3
A, C, B, E, D
4
A, C, D, E, B
12
PYQ 2023
medium
economics ID: cuet-pg-
Arrange the following Management Theories/Approaches in chronological order, starting from the earliest/oldest.
A. Elton Mayo's Hawthorne Studies
B. Systems Approach
C. Taylor's principles of Scientific Management
D. Total Quality Management
E. Henri Fayol's Modern Management Theory
Choose the correct answer from the options given below:
1
E, C, A, B, D
2
E, C, B, A, D
3
C, E, A, B, D
4
C, E, A, D, B
13
PYQ 2023
medium
economics ID: cuet-pg-
Match List I with List II
LIST I LIST II
A.Theory YI.David McClelland
B.Hierarchy of Needs TheoryII.Abraham Maslow
C.Three-Needs TheoryIII.Frederick Herzberg
D.Motivation-Hygiene TheoryIV.Douglas McGregor
Choose the most appropriate answer from the options given below:
1
A-IV, B-II, C-I, D-III
2
A-IV, B-I, C-II, D-III
3
A-I, B-II, C-III, D-IV
4
A-II, B-I, C-IV, D-III
14
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements:
Statement I: The socioeconomic view says that management's only social responsibility is to maximize profits.
Statement II: The classical view of social responsibility says that management's social responsibility goes beyond making profits and includes social welfare.
In the light of the above statements, choose the correct answer from the options given below
1
Both Statement I and Statement II are true
2
Both Statement I and Statement II are false
3
Statement I is true but Statement II is false
4
Statement I is false but Statement II is true
15
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R)
Assertion (A): Zero base budgeting forces manages to plan each program package a fresh.
Reason (R): Balanced Scorecard helps ensure the alignment between a company's strategic objectives and its operational activities.
In the light of the above statements, choose the correct answer from the options given below:
1
Both (A) and (R) are true and (R) is the correct explanation of (A)
2
Both (A) and (R) are true but (R) is NOT the correct explanation of (A)
3
(A) is true but (R) is false
4
(A) is false but (R) is true
16
PYQ 2023
easy
economics ID: cuet-pg-
Who propounded the principle of 'Maximum Social Advantage'?
1
Adam Smith
2
James Tobin
3
John Keynes
4
Hugh Dalton
17
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R
Assertion A: The diagonal elements of the Leontief matrix |I-A must be positive i.e. a11, a22. a33...an should all be less than 1.
Reason R : If aii> 1 for some i, one or more units of the ith industry would be required to produce one unit of itself and as such no net profit can be secured under such circumstances.
In the light of the above statements, choose the correct answer from the options given below
1
Both A and R are true and R is the correct explanation of A
2
Both A and R are true but R is NOT the correct explanation of A
3
A is true but R is false
4
A is false but R is true
18
PYQ 2023
medium
economics ID: cuet-pg-
Match List I with List II
LIST I LIST II
A.Focus should be on material information and resources of the enterprises
should not be spent on recording and reporting of immaterial information
I.Going concern
B.Loss of stock is recognised in the period in which it occursII.Materiality
C.Assets are not shown at their current realisable valueIII.Prudence
D.Valuation of closing stock at cost or market value whichever is lowerIV.Matching principle
Choose the most appropriate answer from the options given below:
1
A-I, B-III. C-IV, D-II
2
A-II, B-I, C-IV, D-III
3
A-II, B-IV, C-I, D-III
4
A-I, B-II, C-IV, D-III
19
PYQ 2023
medium
economics ID: cuet-pg-
Unfavorable labour rate variance does not occur because of which of the following?
1
Shortage of labour
2
Seasonal or emergency operations
3
Availability of labour in abundance
4
Overtime
20
PYQ 2023
medium
economics ID: cuet-pg-
Who is regarded as the ‘Father of Corporate Social Responsibility’?
1
Adein Cabdwey
2
Narayan Murthy
3
Howard Bowen
4
Friedman
21
PYQ 2023
medium
economics ID: cuet-pg-
Match List I with List II
LIST I LIST II
A.Span of ControlI.Degree to which tasks are divided into separate jobs
B.DecentralizationII.Number of employees a manager can efficiently and effectively manage
C.DepartmentalizationIII.Degree to which lower-level employees provide input or make decision
D.Work SpecializationIV.Basis by which jobs are grouped together
Choose the most appropriate answer from the options given below:
1
A-III, B-II, C-IV, D-I
2
A-II, B-III, C-IV, D-I
3
A-II, B-III, C-I, D-IV
4
A-III, B-II, C-I, D-IV
22
PYQ 2023
medium
economics ID: cuet-pg-
Identify the correct sequence of steps involved in the Decision Making process
A. Allocation of weights to criteria
B. Evaluation of Decision effectiveness
C. Identification of a problem and Decision criteria
D. Development & Analysis of alternatives
E. Selection and Implementation of Alternative
Choose the correct answer from the options given below:
1
C, A, B, E, D
2
A, C, E, D, B
3
A, C, D, B, E
4
C, A, D, E, B
23
PYQ 2023
medium
economics ID: cuet-pg-
What are the two main branches of insurance?
A. Life Insurance
B. Fire Insurance
C. Marine Insurance
D. Miscellaneous Insurance
E. General Insurance
Choose the correct answer from the options given below:
1
A, E only
2
A, C only
3
B, C only
4
A, D only
24
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R)
Assertion (A): The general rule of 'Caveat emptor' does not apply to insurance contracts.
Reason (R): The insurance is liable only for those losses which have been proximately caused by the peril insured against.
In the light of the above statements, choose the correct answer from the options given below:
1
Both (A) and (R) are true and (R) is the correct explanation of (A)
2
Both (A) and (R) are true but (R) is NOT the correct explanation of (A)
3
(A) is true but (R) is false
4
(A) is false but (R) is true
25
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements:
Statement I: Endowment Policy run's only for a limited period or up to a particular age.
Statement II: For a valid nomination, some consideration is essential unless made by way of gift. But assignment does not require any consideration. In the light of the above statements, choose the correct answer from the options given below
1
Both Statement I and Statement II are true
2
Both Statement I and Statement II are false
3
Statement I is true but Statement II is false
4
Statement I is false but Statement II is true
26
PYQ 2023
medium
economics ID: cuet-pg-
Which of the following is not component of audit risk?
1
Inherent risk
2
Material risk
3
Control risk
4
Detection risk
27
PYQ 2023
medium
economics ID: cuet-pg-
Arrange the following in the chronological order starting with the earliest.
A. Loentief Paradox
B. Factor proportions Theory of International Trade
C. Absolute Advantage Theory of International Trade
D. Comparative Advantage Theory of International Trade
Choose the correct answer from the options given below:
1
A, B, C, D
2
D, C, B, A
3
B, A, D, C
4
C, D, B, A
28
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R):
Assertion (A): Coase theorem states that as long as property rights are defined and enforced, bargaining between parties can ensure an efficient outcome in the presence of externalities.
Reason (R) : The assignment of property rights with bargaining among parties can resolve externality problems, when the number of parties involved is large.
In the light of the above statements, choose the most appropriate answer from the options given below:
1
Both (A) and (R) are correct and (R) is the correct explanation of (A)
2
Both (A) and (R) are correct but (R) is not the correct explanation of (A)
3
(A) is correct but (R) is not correct
4
(A) is not correct but (R) is correct
29
PYQ 2023
medium
economics ID: cuet-pg-
Match List-I with List-II :
List-IList-II
(A)Evolution of Provincial Finance in British India(I)M. K. Gandhi
(B)Essays on Indian Economics(II)B. R. Ambedkar
(C)Hind Swaraj(III)Dadabhai Naoroji
(D)Poverty and Un-British Rule in India(IV)Mahadev Govind Ranade
Choose the correct answer from the options given below:
1
(A)-(IV); (B)-(II); (C)-(III); (D)-(I)
2
(A)-(II); (B)-(IV); (C)-(I); (D)-(III)
3
(A)-(IV); (B)-(III); (C)-(II); (D)-(I)
4
(A)-(II); (B)-(I); (C)-(III); (D)-(IV)
30
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R):
Assertion (A) According to the first theorem of welfare economics, a competitive equilibrium is Pareto efficient.
Reason (R) : According to the Walras law, the value of aggregate excess demand is zero for all prices.
In the light of the above statements, choose the correct answer from the options given below:
1
Both (A) and (R) are true and (R) is the correct explanation of (A)
2
Both (A) and (R) are true but (R) is not the correct explanation of (A)
3
(A) is true but (R) is false
4
(A) is false but (R) is true
31
PYQ 2023
medium
economics ID: cuet-pg-
Match List-I with List-II :
List-IList-II
(A)Cournot Nash equilibrium(I)Price leadership model
(B)Stackelberg model(II)Non-collusive
(C)Kinked-demand curve model(III)First-mover advantage fixing quantities
(D)Bertrand model(IV)Price-rigidity model
Choose the correct answer from the options given below:
1
(A)-(I); (B)-(IV); (C)-(III); (D)-(II)
2
(A)-(IV); (B)-(II); (C)-(III); (D)-(I)
3
(A)-(I); (B)-(III); (C)-(II); (D)-(IV)
4
(A)-(II); (B)-(III); (C)-(IV); (D)-(I)
32
PYQ 2023
medium
economics ID: cuet-pg-
As per the Marshall Lerner conditions, for the trade balance to improve following depreciation of the currency:
1
the sum of the elasticities of exports and imports should be greater than 1
2
the sum of the elasticities of exports and imports should be less than 1
3
the sum of the elasticities of exports and imports should be equal to 1
4
the sum of the elasticities of exports and imports should be equal to zero
33
PYQ 2023
medium
economics ID: cuet-pg-
Match List-I and List-II
LIST ILIST II
A.Cournot EquilibriumI.Joint Profit Maximisation
B.Nash EquilibriumII.Largest firm sets price to maximise
profits
C.Cournot Collusive
Equilibrium
III.Equilibrium in which each firm
correctly assumes how much its
competitor will produce and sets its
own production level
D.Dominant firm
model
IV.Set of strategies or actions in which
each firm does its best given its
competitor's actions.

Choose the correct answer from the options given below:
1
A-I, B-III, C-II, D-IV
2
A-I, B-II, C-III, D-IV
3
A-III, B-IV, C-I, D-II
4
A-II, B-I, C-III, D-IV
34
PYQ 2023
medium
economics ID: cuet-pg-
Arrange in the chronological order of the occurrence of events:
A. Great Depression
B. Golden Age of Capitalism
C. Second World War
D. Setting up of WTO
E. Second international oil price shock
Choose the correct answer from the options given below:
1
C, A, B, E, D
2
A, C, B, D, E
3
A, C, B, E, D
4
A, C, E, B, D
35
PYQ 2023
medium
economics ID: cuet-pg-
Arrange the books in chronological order of publication:
A. Theories of Surplus Value
B. The General Theory of Employment, Interest and Money
C. On the Principles of Political Economy and Taxation
D. An Inquiry into the Nature and Causes of the Wealth of Nations
Choose the correct answer from the options given below:
1
A, B, C, D
2
D, C, A, B
3
B, A, C, D
4
C, B, D, A
36
PYQ 2023
medium
economics ID: cuet-pg-
Match List-I with List-II :
List-IList-II
(A)Phillips curve(I)Consumption per capita maximum at steady state
(B)Vertical AS curve(II)Debt financing by bond issues merely postpones taxation
(C)Golden rule level of savings(III)Trade-off between inflation and unemployment
(D)Ricardian equivalence(IV)No long-run trade-off between inflation and unemployment
Choose the correct answer from the options given below:
1
(A)-(II); (B)-(I); (C)-(IV); (D)-(III)
2
(A)-(III); (B)-(IV); (C)-(I); (D)-(II)
3
(A)-(IV); (B)-(III); (C)-(I); (D)-(II)
4
(A)-(III); (B)-(IV); (C)-(II); (D)-(I)
37
PYQ 2023
medium
economics ID: cuet-pg-
Second order Taylor series expansion of y = 1n(1-x) is:
1
2
3
4
38
PYQ 2023
medium
economics ID: cuet-pg-
Second-order Taylor series approximation of f(x) = In(1+x) at x=0 is
1
2
3
4
39
PYQ 2023
medium
economics ID: cuet-pg-
The economy of INDUS grows at 6% per annum and its investment ratio is 31.2%. What is the capital output ratio of this economy, by the assumptions of the Harrod-Domar model?
1
18.72
2
5.2
3
0.65
4
4.6
40
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R:
Assertion A: Pareto optimality implies that an allocation of resources is inefficient when it is possible, through some change in the allocation of resources to benefit at least one person without making anyone else worse off.
Reason R: Pareto efficiency takes into account distributive justice and compensation of people affected negatively.
In the light of the above statements, choose the most appropriate answer from the options given below:
1
Both A and R are correct and R is the correct explanation of A
2
Both A and R are correct but R is NOT the correct explanation of A
3
A is correct but R is not correct
4
A is not correct but R is correct
41
PYQ 2023
medium
economics ID: cuet-pg-
Tobin's q ratio refers to
1
the ratio of the market value of the firm's assets to the cost of producing those assets
2
the ratio of the cost of producing assets to the market value of the assets
3
the ratio of the PBT (profit before taxes) to the market value of the firm's assets
4
the ratio of the PBT (profit before taxes) to the cost of producing those assets
42
PYQ 2023
medium
economics ID: cuet-pg-
Which of the following statements are correct?
A. Life cycle hypothesis was propounded by Francois Modigliani
B. Absolute Income Hypothesis was propounded by Milton Friedman
C. Relative Income Hypothesis was propounded by James Duesenberry.
D. Permanent Income Hypothesis was propounded by John Maynard Keynes
Choose the correct answer from the options given below:
1
A & C only
2
A, B, C only
3
A & D only
4
B & C only
43
PYQ 2023
medium
economics ID: cuet-pg-
Choose the correct statement(s) for an open economy:
A. Sterilisation implies nullifying the impact of foreign exchange transactions on domestic money supply.
B. In a sterilized intervention in the foreign exchange market by the central bank, a purchase of foreign assets should be matched by a sale of domestic assets.
C. In an open economy with fixed exchange rates and perfect capital mobility, the central bank can pursue independent monetary policy.
D. Sterilised intervention with perfect asset substitutability under fixed exchange rate allows the exchange rate to depreciate.
E. Real exchange rate can change only due to changes in nominal exchange rate.
Choose the correct answer from the options given below:
1
C and D only
2
C, B and E only
3
A and B only
4
B, C and D only
44
PYQ 2023
medium
economics ID: cuet-pg-
Which one of the following renowned economists was a member of the Royal Commission on Currency and Finance of 1913?
1
Alfred Marshall
2
John Maynard Keynes
3
Lionel Robbins
4
Joan Robinson
45
PYQ 2023
medium
economics ID: cuet-pg-
Match List-I and List-II
LIST ILIST II
A.Quantitative Theory of MoneyI.James Tobin
B.Exchange Rate OvershootingII.Irving Fisher
C.Law of One PriceIII.Rudiger
Dornbusch
D.Liquidity Inference as a Behaviour
towards Risk
IV.Gustav Cassel

Choose the correct answer from the options given below:
1
A-IV, B-I, C-III, D-II
2
A-II, B-III, C-IV, D-I
3
A-III, B-II, C-IV, D-I
4
A-II, B-I, C-IV, D-III
46
PYQ 2023
medium
economics ID: cuet-pg-
During the high noon of the British Empire, which of the following statement(s) is/are true?
A. Britain had a current account surplus with India, but a current account deficit with the rest of the world.
B. Britain had a current account deficit with India, but a current account surplus with the rest of the world.
C. Britain had a current account surplus with India and it had an even higher current account surplus with the rest of the world.
D. Britain had a current account deficit with India and even higher current account deficit with the rest of the world.
E. The current account surplus which Britain had with India was sufficient to tide over the current account deficit with the rest of the world.
Choose the correct answer from the options given below:
1
A, E
2
C, D
3
D, B
4
A, C
47
PYQ 2023
medium
economics ID: cuet-pg-
Match List-I and List-II
LIST I (Book)LIST II (Author)
A.An inquiry into the Nature and Causes
of Wealth of Nations
I.David Ricardo
B.Principles of Political Economy and
Taxation
II.John Maynard Keynes
C.Theories of Surplus ValueIII.Karl Marx
D.General Theory of Employment
Interest and Money
IV.Adam Smith

Choose the correct answer from the options given below:
1
A-I, B-II, C-III, D-IV
2
A-II, B-I, C-III, D-IV
3
A-IV, B-I, C-III, D-II
4
A-IV, B-III, C-I, D-II
48
PYQ 2023
medium
economics ID: cuet-pg-
The simple neoclassical Solow model assumes
1
Hicks-neutral technological change.
2
Harrod-neutral technological change
3
Solow-neutral technological change
4
Pareto-neutral technological change
49
PYQ 2025
medium
economics ID: cuet-pg-
In the case of classical economics, an increase in the nominal money stock causes:
1
An increase in output
2
Shift in aggregate demand curve to the left
3
No change in the price level
4
Shift in the aggregate demand curve to the right
50
PYQ 2025
medium
economics ID: cuet-pg-
According to monetarist thought, the natural rate of unemployment and output is not determined by:
1
Capital Stock
2
Size of labour force
3
Level of technology
4
Aggregate demand
51
PYQ 2025
medium
economics ID: cuet-pg-

Arrange the following theories in chronological order starting from oldest to latest:

(A) Keynesian Theory of Demand for Money
(B) Quantity Theory of Money
(C) Cambridge Cash Balance Approach
(D) Modern Quantity Theory of Money
Choose the correct answer from the options given below:

1
(B), (C), (D), (A)
2
(A), (C), (B), (D)
3
(B), (C), (A), (D)
4
(C), (D), (A), (B)