CUET Economics Question Paper 2024 with Solutions

The CUET 2024 exam for Economics was held in offline mode on May 16. The CUET UG 2024 Economics question paper was moderate. However, several students felt the paper was too long and challenging. Furthermore, some students stated that they were unable to complete all of the questions during the duration.

Candidates who appeared for the test may refer to this page to acquire the CUET Economics Question Paper with solutions that will help you comprehend the types of questions that are asked and calculate their scores.

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CUET Economics Question Paper 2024

Memory-Based CUET Economics Question Paper 2024 is very important for candidates who are going to choose Economics as a domain subject in CUET. According to the CUET exam pattern, the total marks for the Economics subject are 200. The Economics portion will comprise 50 questions, with candidates obliged to attempt 40 of them. The CUET Economics Question Paper of Last year is given on this page with Solution. Download the CUET Economics Question Paper to familiarise yourself with the exam structure.

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CUET Economics Question Paper 2024 & Answer Key

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CUET 2024 Economics Question Paper with Solutions

Our subject expert shared the CUET UG Economics question paper with answers below.Please note the Highlighted options are the correct answers.

Q1. Casualization of workforce would result in:
(a) Decrease in the vulnerability of the workforce.
(b) Increase in the vulnerability of the workforce.
(c) Increase in the number of regular workers.
(d) Income and employment stability.

Q2. Choose the correct chronological sequence in ascending order (earliest to latest):
(A) Establishment of NABARD
(B) FRBMA (Fiscal Responsibility and Budget Management Act)
(C) Third Five Year Plan
(D) Nationalization of RBI
Options:
(a) (A), (B), (C), (D)
(b) (A), (C), (B), (D)
(c) (D), (A), (B), (C)
(d) (D), (C), (A), (B)

Q3. Under flexible exchange rate, when the price of domestic currency in terms of foreign currency increases, it is called ___________.
(a) Depreciation of domestic currency
(b) Appreciation of domestic currency
(c) Devaluation of domestic currency
(d) Revaluation of domestic currency

Q4. Match List-I with List-II:

Choose the correct answer from the options given below:
(a) (A) – (II), (B) – (I), (C) – (III), (D) – (IV)
(b) (A) – (II), (B) – (III), (C) – (I), (D) – (IV)
(c) (A) – (I), (B) – (II), (C) – (IV), (D) – (III)
(d) (A) – (III), (B) – (IV), (C) – (I), (D) – (II)
Q5. ____________________ 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.
(a) Absorptive capacity
(b) Carrying capacity
(c) Subsistence capacity
(d) Exhaustive capacity

Q6. 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.
(a) 4–10 years
(b) 6–12 years
(c) 6–14 years
(d) 8–15 years

Q7. 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
Choose the correct answer from the options below:
(a) (A), (B), (C), (D)
(b) (A), (C), (B), (D)
(c) (B), (C), (D), (A)
(d) (B), (D), (C), (A)

Q8. Arrange the following items in correct sequence.
(A) Competition Act
(B) FEMA
(C) FERA
(D) MRTP
Choose the correct answer from the options given below:
(a) (A), (B), (C), (D)
(b) (A), (C), (B), (D)
(c) (D), (C), (B), (A)
(d) (C), (B), (D), (A)

Q9. The Great Leap Forward (GLF) campaign was initiated in __________.
(a) 1948
(b) 1938
(c) 1958
(d) 1942

Q10. Match List-I with List-II:

Choose the correct answer from the options given below:
(a) (A) – (I), (B) – (II), (C) – (III), (D) – (IV)
(b) (A) – (II), (B) – (III), (C) – (I), (D) – (IV)
(c) (A) – (I), (B) – (II), (C) – (IV), (D) – (III)
(d) (A) – (III), (B) – (IV), (C) – (I), (D) – (II)

Q11. Second phase of Green Revolution is termed from:
(a) mid 1960s to mid 1970s
(b) mid 1970s to mid 1980s
(c) mid 1950s to mid 1960s
(d) mid 1980s to mid 1990s

Q12. During 1980s, the growth rate in Pakistan improved on account of which of the following reasons?
(a) Institutionalised process of technical change
(b) A good harvest
(c) Sustainable export of manufactured goods
(d) High amount of foreign direct investment inflow

Q13. When there is unexpected rise in the sales ___________.
(a) Aggregate demand would decline.
(b) There will be unplanned accumulation of inventories.
(c) There will be unplanned decumulation of inventories.
(d) Normal profit would be lower.

Q14. During festive season, the currency deposit ratio _________________.
(a) decreases
(b) increases
(c) has no impact on it
(d) first decreases then increases

Q15. European Monetary Union was created in _________.
(a) 1996
(b) 1994
(c) 1999
(d) 2002

Q16. Identify the correct statement in the context of Circular Flow of Income in a two sector economy:
(a) Household receives factor services from firms.
(b) Household invests while firm saves.
(c) Firms produce goods and services.
(d) Household supplies factor services to Government.

Q17. 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:
(a) (A) and (D) only
(b) (A) and (C) only
(c) (B) and (D) only
(d) (C) and (D) only

Q18. Match List-I with List-II:

Choose the correct answer from the options given below:
(a) (A) – (I), (B) – (II), (C) – (III), (D) – (IV)
(b) (A) – (III), (B) – (I), (C) – (IV), (D) – (II)
(c) (A) – (I), (B) – (II), (C) – (IV), (D) – (III)
(d) (A) – (III), (B) – (IV), (C) – (I), (D) – (II)

Read the following passage and answer the next five questions:
In our quest to increase agricultural production during the last five decades or so, we almost totally neglected the use of compost and completely switched over to chemical fertilizers. The results is that large tracts of productive land have been adversely affected, water bodies inclusive ground water system have suffered due to chemical contamination and demand for irrigation has been going on year after year. Farmers, in large numbers all over the country, have again started using compost made from organic wastes of different types. In certain parts of the country, cattle are maintained only because they produce dung which is an important fertiliser and soil conditioner.
Earthworms can convert organic matter into compost user than the normal compositing process. This process is now being widely used. Indirectly, the civic authorities are benefitted too as they have to dispose reduced quantity of waste.

Q19. How is civic authority getting benefitted due to biocompositing?
(a) They have to dispose increased quantity of waste.
(b) They don’t have to dispose any waste.
(c) Because civic authority has no role in waste management.
(d) They have to dispose reduced quantity of waste.
Q20. Choose the correct statement concerned with the passage:
(a) Earthworm takes equal time to convert organic matter into compost with respect to normal composting process.
(b) Earthworm takes more time to convert organic matter into compost with respect to normal composing process.
(c) Earthworm takes less time to convert organic matter into compost with respect to normal composting process.
(d) Comparison between earthworm based composting and normal composting cannot be made.

Q21. Water bodies including ground water system have suffered due to:
(a) Biocomposting
(b) Chemical contamination and increased demand for irrigation
(c) Organic farming
(d) Increased fertility of land
Q22. In certain parts of the country, cattle are maintained only because they _______________.
(a) Produce milk to increase income of farmers
(b) Produce dung which is an important fertilizer and soil conditioner
(c) Work as insect repellants
(d) Are a symbol of traditional ethics and values.

Q23. What should be the suitable title for the above passage?
(a) Biocomposting
(b) Biopest Control
(c) Traditional Knowledge and Practice
(d) Uses of Chemical Fertilizers

Read the following passage and answer the next five questions.
India had an independent economy because the advent of the British rule. Though agriculture was the main source of livelihood for most people, yet, the country’s economy was characterised by various kinds of manufacturing activities. India was particularly well known for its handicraft industries in the fields of cotton and silk textiles, metal and precious stone works etc. These products employed a worldwide market based on the reputation of the fine quality of material used and the high standard of craftsmanship seen in all imports from India. The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interests of their home country than with the development of the Indian economy. Such policies brought about a fundamental change in the structure of the Indian economy —- transforming the country into a supplier of raw materials and consumer of finished industrial products from Britain. Obviously, the colonial government never made any sincere attempt to estimate India’s national and per capita income. Some individual attempts which were made to measure such incomes yielded conflicting and inconsistent results. Among the notable estimators — Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao and R.C. Desai —- it was Rao, whose estimates during the colonial period were considered very significant. However, most studies did find that the country’s growth of aggregate real output during the first half of the twentieth century was less than two per cent coupled with a meagre half per cent growth in per capita output per year.

Q24. Before the British rule, India was well known for which manufacturing industries’ products?
(a) Cotton and Silk or Khadi textiles
(b) Cotton and Engineering products
(c) Cotton and Silk textiles, metal and precious stones, etc
(d) Engineering goods and precious metals

Q25. What kind of interests was the colonial government concerned with in the economic policy for Indian industries?
(a) To promote the handicraft industries of India
(b) Promote and protect small scale industries of India
(c) Protect and promot the economic interests of Indian industry along with their home country
(d) Provide protection and promotion of the economic interests of their home country

Q26. Choose the economists who estimated India’s National Income and Per Capita Income.
(a) Dadabhai Naoroji, William Digby, Bernier, V.K.R.V. Rao and R.C. Desai
(b) Dadabhai Naoroji, Willam Digby, Findlay Shirras, V. K.R.V. Rao and R.C. Desai
(c) Dadabhai Naoroji, Jagdish Bhagwati, V.K.R.V. Rao and R.C. Desai
(d) Dadabhai Naoroji, Findlay Shrirras and V.K.R.V. Rao

Q27. What was the country’s growth of aggregate feal output during the first half of the 20th century?
(a) 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.
(b) 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.
(c) 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.
(d) 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.
Q28. According to the passage, which of the following statement was trade about Indian industries’ products?
(a) Indian products were of inferior quality and cheap in the worldwide market.
(b) Indian products were promoted by the colonial government and completed with other countries’ markets also.
(c) Indian products enjoyed a worldwide market based on quality of material used and the high standard of craftsmanship.
(d) Indian products’ raw material for primary goods was imported from the other countries and it helped to increase export.

Q29. _________ is a market where economic agents can freely exchange their endowments with each other.
(a) Market economy
(b) Centrally planned economy
(c) Aggregate demand based economy
(d) Aggregate supply based economy
Q30. Which of the following are correct statements?
(A) Marginal Utility is the change in Total Utility due to consumption of one additional unit of commodity.
(B) Two Indifference Curves intersect each other.
(C) Marginal Utility became zero at a level when Total Utility remains constant.
(D) Diminishing Marginal Rate of Substitution does not affect Indifference Curve.
(E) Indifference Curve slopes downwards from left to right.
Choose the correct answer from the options given below:
(a) (A), (B) and (E) only
(b) (A), (C) and (E) only
(c) (A), (D) and (E) only
(d) (B), (D) and (E) only

CUET Economics Paper 2024 with Solutions PDF

Students who are going to take the  CuET Economics Paper next year can download the question paper along with the solutions. Our Expert team provides you the detailed solutions of each MCQ with proper explanations. Download the CUET UG Economics Paper with Solutions Now and start practicing.

CUET Economics Question paper with Solutions

CUET Economics Paper Pattern

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CUET Economics PYQs with Solutions

Q1. Workers who own and operate an enterprise to earn their livelihood are known as:

(a) Regular salaried employees
(b) Part time employees
(c) Casual wage labourers
(d) Self-employed
Ans. (d)

Sol. Self-employed workers are those who own and operate their own businesses. They are responsible for their own profits and losses, and they do not receive a regular salary from an employer.

Q2. In India. people are encouraged to open Bank accounts, besides promoting saving habit. this scheme intents to transfer all the benefits of government schemes and subsidies to accounts holder directly. This scheme is called____________.

(a) Pradhan Mantri Jan-Dhan
(b) Pradhan Mantri Gramoday Yojana
(c) Pradhan Mantri Rozgar Yojana
(d) Pradhan Mantri Swarna Jayanthi Yojana
Ans. (a)

Sol. The scheme that intents to transfer all the benefits of government schemes and subsidies to accounts holder directly is called Pradhan Mantri Jan-Dhan Yojana.

It is a financial inclusion scheme launched by the Government of India in 2014. The scheme aims to provide access to banking services to all households in India. It also aims to promote saving habits and to provide financial security to the poor and marginalized.

Q3. The Indian System of Medicine is called:

(a) BHARAT
(b) AYUSH
(c) IND MED
(d) VEDIC MED

Ans. (b)

Sol. AYUSH is an acronym for Ayurveda, Yoga, Unani, Siddha, and Homeopathy. These are five traditional systems of medicine that have been practiced in India for centuries.

Q4. In the calculation of GDP by Expenditure method what should added from the following:

(A) Private Final Consumption expenditure
(B) Investment Expenditure
(C) Net imports
(D) Net exports
(E) Government Final Consumption Expenditure

Choose the correct answer from the options given below:

(a) (B), (C), (D), (E) Only
(b) (A), (B), (D), (E) Only
(c) (C), (D), (E), (A) Only
(d) (A), (C), (B), (D) Only

Ans. (b)

Sol. The expenditure method of calculating GDP calculates GDP by adding up the following four components:

• Private Final Consumption Expenditure: This is the spending by households on goods and services for their own consumption.
• Investment Expenditure: This is the spending by businesses on capital goods, such as machinery and equipment.
• Government Final Consumption Expenditure: This is the spending by the government on goods and services for its own consumption, such as defense and education.
• Net Exports: This is the difference between a country’s exports and imports. Exports are goods and services produced in a country and sold to other countries. Imports are goods and services produced in other countries and bought by a country.

Q5. In addition to limited availability of resources, what is the other reason which compels every economy to decide on how to use its resources:

(a) Optimum utilisation of resources without cost advantage
(b) Resources do have competing usages
(c) Minimum wastage of resources
(d) Economical usage of resources

Ans. (b)

Sol. Every economy has to decide on how to use its resources because resources have competing usages. This means that there are many different ways to use the same resources, and each use has a different opportunity cost. For example, land can be used to grow food, build houses, or build factories. Each of these uses has a different opportunity cost. If land is used to grow food, then it cannot be used to build houses or factories.

Q6. Read the following facts about Indian economy during British rule and select correct facts:

(A) Commercialisation of agriculture led to the production of cash crops which help British industries back home
(B) Britain maintained a monopoly control over India’ s exports and imports
(C) Basic infrastructure such as railways, ports, water transport, posts and telegraphs did develop to provide basic amenities to the people
(D) Indian trade was restricted to Britain, China, Russia and America
(E) India’s economy remained fundamentally agrarian under the British rule

Choose the correct answer from the options given below:
(a) (A), (B) & (C) Only
(b) (A), (B) & (D) Only
(c) (A), (B) & (E) Only
(d) (A), (B), (C) & (E) Only

Ans. (c)

Sol. The correct options are (A), (B), and (E).

(A) Commercialization of agriculture led to cash crops, which British industries needed as raw materials.

(B) Britain maintained a monopoly control over India’s exports and imports. This meant that India could only trade with Britain and had to sell its goods to Britain at low prices and buy British goods at high prices.

(E) India’s economy remained fundamentally agrarian under the British rule. This means that most of the Indian population worked in agriculture and the Indian economy was dependent on agriculture.

Q7. _______________ are things a firm owns or what a firm can claim from other:

(a) Assets
(b) Liabilities
(c) Deposits
(d) Reserves

Ans. (a)

Sol. Assets are resources owned by a business that can be used to produce economic value. Assets can include things like cash, real estate, inventory, and accounts receivable, among others. Essentially, assets are what a firm owns or can claim from others, making them valuable resources that contribute to the firm’s financial health.

Q8. When percentage change in quantity demanded is less than the percentage change in price i.e., if the good is price inelastic, the expenditure on the good would ______________?

Identify the correct option from the following:
(a) Change in opposite direction as the price change
(b) Change in same direction as the price change
(c) Change in reverse direction to income
(d) Remain unchanged

Ans. (b)

Sol. When demand for a good is price inelastic, the percentage change in quantity demanded is less than the percentage change in price. In such a scenario, if the price of the good increases, total expenditure on the good also increases; if the price decreases, total expenditure also decreases.

This is because the proportionate decrease in quantity demanded is less than the proportionate increase in price, and vice versa. Therefore, the expenditure (which is Price x Quantity) would change in the same direction as the price change.

Q9. The government sector affects the personal disposable income of households by making transfers and collecting taxes’.

The above statement refers to which objective of the government budget?

(a) Allocation function
(b) Redistribution function
(c) Stabilisation function
(d) Management of public enterprises

Ans. (b)

Sol. The statement “The government sector affects the personal disposable income of households by making transfers and collecting taxes” refers to the redistribution function of the government budget.

The redistribution function of the government budget is concerned with the distribution of income and wealth in society. The government uses taxes and transfers to redistribute income from the rich to the poor. This can be done through progressive taxation, social welfare programs, and other policies.

Q10. The central bank performs the following functions:

1. Banker to the public
2. Banker to the banks
3. Banker to the government
4. Lender of the last resort
5. Issues one rupee coins

Choose the correct answer from the options given below:

(a) A, B and C only
(b) B, C and D only
(c) C, D and E only
(d) A, D and E only

Ans. (b)

Sol. The central bank performs the following functions:

Banker to the banks: The central bank provides banking services to commercial banks, such as clearing checks and providing loans.

Banker to the government: The central bank provides banking services to the government, such as managing the government’s debt and processing government payments.

Lender of last resort: The central bank provides loans to commercial banks when they are facing liquidity problems. This helps to prevent financial crises.

Q11. A tax that acts as an automatic stabiliser – a shock absorber, because it makes disposable income spending, less prone to fluctuation in GDP. That tax is –

(a) Sales Tax
(b) Income Tax
(c) Gift Tax
(d) Excise duty

Ans. (b)

Sol. Income tax is a progressive tax, which means that the higher the income, the higher the tax rate. This means that when incomes fall, tax revenue also falls, and vice versa. This helps to cushion the blow of economic downturns and to boost aggregate demand during times of economic expansion.

Q12. Possibility of using small-scale industries in India for promoting rural development is immense. Small Scale Industries are characterised by which technique?

(a) Capital Intensive
(b) Labour Intensive
(c) Government Intensive
(d) Land Intensive

Ans. (b)

Sol. Small scale industries are typically low-cost, low-tech industries that rely on manual labor rather than expensive machinery. This makes them ideal for rural areas, where there is often a surplus of labor but a shortage of capital.

Q13. A country’s consumption function described as C=500+0.7Y the Autonomous consumption

(a) 350
(b) 500
(c) 3500
(d) 350

Ans. (b)

Sol. Autonomous consumption is the part of consumption that is independent of income. In the consumption function C=500+0.7Y, the autonomous consumption is 500. This is because the 500 term does not depend on income.

Therefore, the answer is 500

Q14. The benefit of organic farming is.

(a) Limited shelf life
(b) Labour intensive
(c) Limited off-season crops
(d) Marketing issues

Ans. (b)

Sol. India has a comparative advantage in organic farming. Because organic farming involves a labor-intensive process. The abundance of labour places India in a better position to specialize in organic farming

Q15.       Match List-I with List-II:

Choose the correct answer from the options given below:

(a) (A)-(III), (B)-(II), (C)-(I), (D)-(IV)
(b) (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
(c) (A)-(IV), (B)-(II), (C)-(III), (D)-(I)
(d) (A)-(III), (B)-(I), (C)-(IV), (D)-(II)

S15. Ans. (d)

Sol. The correct matching of the items in List I and List II is:

List I                                                                                List II

1. Reduction in the value of currency III. Devaluation
2. Dilution of share in organisation I. Disinvestment
3. Restriction on trade by taxes IV. Tariff barriers
4. Rise in General price level II. Inflation

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