CUET-PG SERIES Economics
Indifference Curve Analysis
10 previous year questions.
Volume: 10 Ques
Yield: Medium
High-Yield Trend
10
2023 Chapter Questions 10 MCQs
01
PYQ 2023
hard
economics ID: cuet-pg-
With good X on the horizontal axis and good Y on the vertical axis, a U shaped indifference curve indicates:
1
X good, y bad
2
X and Y both good
3
X good then bad; Y good
4
Y good then bad; X good
02
PYQ 2023
medium
economics ID: cuet-pg-
The real factors that leads to demand-pull inflation causes -
1
IS curve to shift downward
2
IS curve to shift upward
3
LM curve to shift downward
4
LM curve to shift upward
03
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements:
Statement I: In case of inferior goods, Engel curve is upward sloping.
Statement II: In case of normal goods, Engel curve is downward sloping.
In the light of the above statements, choose the correct answer from the options given below:
Statement I: In case of inferior goods, Engel curve is upward sloping.
Statement II: In case of normal goods, Engel curve is downward sloping.
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
04
PYQ 2023
medium
economics ID: cuet-pg-
Match List-I with List-II :
Choose the correct answer from the options given below :
| List-I | List-II | ||
| (A) | The shape of an indifference curve for two bads | (I) | Horizontal , parellel to X-axis, utility rises as move to a lower indifference curve |
| (B) | The shape of an indifference curve for one good and one bad | (II) | Concave to the origin |
| (C) | The shape of an indifference curve for one good Y and one neutral X | (III) | Upward sloping |
| (D) | The shape of an indifference curve for one bad Y and one neutral X | (IV) | Horizontal , parellel to X-axis, utility higher for a higher indifference curve |
1
(A)-(II); (B)-(I); (C)-(IV); (D)-(III)
2
(A)-(II); (B)-(III); (C)-(IV); (D)-(I)
3
(A)-(III); (B)-(II); (C)-(I); (D)-(IV)
4
(A)-(IV); (B)-(I); (C)-(III); (D)-(II)
05
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements :
Statement-I: When the economy is in liquidity trap, the LM curve is horizontal.
Statement-II: Fiscal policy is ineffective when the economy is in liquidity trap.
In the light of the above statements, choose the correct answer from the options given below:
Statement-I: When the economy is in liquidity trap, the LM curve is horizontal.
Statement-II: Fiscal policy is ineffective when the economy is in liquidity trap.
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
06
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements:
Statement I: When the economy is in liquidity trap, the LM curve is vertical.
Statement II: Monetary policy is ineffective when the economy is in liquidity trap.
In the light of the above statements, choose the correct answer from the options given below:
Statement I: When the economy is in liquidity trap, the LM curve is vertical.
Statement II: Monetary policy is ineffective when the economy is in liquidity trap.
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
07
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements:
Statement-I : In the short-run, the rising part of the marginal cost curve is due to diminishing marginal product.
Statement-II : In the short-run, the falling part of the marginal cost curve implies existence of diminishing marginal product.
In the light of the above statements, choose the correct answer from the options given below:
Statement-I : In the short-run, the rising part of the marginal cost curve is due to diminishing marginal product.
Statement-II : In the short-run, the falling part of the marginal cost curve implies existence of diminishing marginal product.
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-
LM curve represents the locus of all those combinations of y and i which satisfy for given values of M and P. What is the value of ?
1
2
3
4
09
PYQ 2023
medium
economics ID: cuet-pg-
The function is:
1
convex for |x|<1 and concave for |x|>1
2
concave for |x|<1 and convex for |x|>1
3
convex everywhere
4
concave everywhere
10
PYQ 2023
medium
economics ID: cuet-pg-
Suppose in a closed economy aggregate demand is given by AD = A(y,i) where y is real income and i is rate of interest. IS curve represents a locus of different combinations of y and i for which y=A(y,i). What is along the IS curve?
1
2
3
4