The CUET Economics exam in 2025 was conducted on May 27, 2025, with the question paper, answer key, and solutions available post-exam. The exam tests understanding of microeconomics, macroeconomics, market structures, national income, and economic development.
Students must attempt 50 questions in 60 minutes. The paper totals 250 marks, with +5 for each correct answer and –1 for each incorrect one.
CUET UG Economics 2025 Question Paper with Solutions PDF
| CUET UG Economics Question Paper with Solutions PDF | Download PDF | Check Solutions |
Whether to use more resources in education and health or to use more resources in building military services. Which of the central problems of an economy is accurate for this?
The collection of all possible combinations of the goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called?
With the shifting demand curve leftward, arrange the following statements in sequential order:
Match List-I with List-II:
| List-I | List-II |
| (A) Analysis assumes that level of utility can be expressed in numbers | (I) Cardinal Utility |
| (B) Change in total utility due to consumption of one additional unit of a commodity. |
(II) Law of Diminishing Marginal Utility |
| (C) Marginal utility from consuming each additional unit of a commodity declines as its consumption increases. | (III) Marginal Utility |
| (D) The amount of mangoes that the consumer has to forego in order to get an additional banana, her total utility level being the same. | (IV) Marginal Rate of Substitution |
Budget Set is ...................
Find the correct statement/statements.
The relation between the consumer’s optimal choice of the quantity of a good and its price is called?
Match List-I with List-II:
| List-I | List-II |
| (A) Relationship between the variable input and output. | (I) Average Product |
| (B) Output per unit of variable input. | (II) Marginal Product |
| (C) Change in output per unit of change in the input. | (III) Law of Variable Proportions |
| (D) The marginal product of a factor input initially rises with its employment level. | (IV) Total Product |
In the long run ..................
The difference between the revenue and cost is known as ...............
............... of an input is defined as the change in output per unit of change in the input when all other inputs remain constant.
Consider the production function \(q = f(x_1, x_2)\) where the firm produces \(q\) amount of output using \(x_1\) amount of factor 1 and \(x_2\) amount of factor 2. The firm decides to increase the employment level of both factors by \(t\) (\(t > 1\)). Identify the equation for decreasing returns to scale from the following:
The change in total cost per unit of change in output is known as ............
Shape of Average Fixed Cost (AFC) curve is ..........
Marginal cost curve intersects average cost curve at ..........
The point on the supply curve at which a firm earns only normal profit is called ..........
Which of the following conditions must hold for a firm to maximise its profit?
How does technological progress affect the firms' supply curve?
Suppose an individual buys 30 bananas when its price is Rs.~10 per banana. When the price increases to Rs.~14 per banana, she reduces her demand to 24 bananas. In this case, what will be the price elasticity of demand?
Which of the following is an example of floor price?
Who is the author of "The General Theory of Employment, Interest and Money"?
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. This result is known as ......
To measure consumer price index (CPI) which of the following years are taken into consideration?
The index of prices of a given basket of commodities which are bought by the representative consumer is known as:
Question 25:
Match List-I with List-II:
| List-I | List-II |
| (A) Gross Domestic Product at Market Price | (I) NDPMP – Net Product Taxes – Net Production Taxes |
| (B) Net Domestic Product at Factor Cost | (II) GVA at basic prices – Net Production Taxes |
| (C) GVA (Gross Value Added) at factor cost | (III) C + I + G + (X – M) |
| (D) Gross National Product at Factor Cost | (IV) GNPMP – Net Product Taxes – Net Production Taxes |
When goods and services are evaluated at constant prices, the measured value is known as ........
Among the following, which are the functions of money?
Money deposited in the banks are considered __________ of the banks.
Question 29:
Match List-I with List-II
| List – I | List – II |
| (A) Cash Reserve Ratio (CRR) | (I) Central Bank of the Country |
| (B) Statutory Liquidity Ratio (SLR) | (II) The interest rate at which the money is lent by Central Bank |
| (C) Lender of last resort | (III) Percentage of deposits which must be kept as cash reserves with the Central Bank |
| (D) Repo Rate | (IV) Reserves in liquid form in the short term |
Currency notes and coins are called:
Ex-post is depicted by which of the following ........
When governments intervene in the market to expand or reduce the demand, this course of action is ........
The difference between the value of exports and the value of imports of goods of a country in a given period of time is known as by what name?
Arrange the following steps of estimation of National Income by income method in the proper sequence:
Arrange the following conditions from most to least liquid form:
Suppose an Indian manufacturer of steel acquires a steel manufacturing unit in Europe. This type of transactions are recorded in which of the following?
In deficit condition of Balance of Payment if the central bank sells foreign exchange then this particular transaction is known as ........
When an individual buys foreign goods, this spending is known as ........
With keeping tax rate (T) constant if government purchases (G) increase, then arrange the following statements considering the effect on total income and output:
Arrange the following steps of calculation of National Income in sequence:
Passage – Output and Employment
The equilibrium output in the economy also determines the level of employment, given the quantities of other factors of production (think of a production function at aggregate level). This means that the level of output determined by the equality of Y with AD does not necessarily mean the level of output at which everyone is employed. Full employment level of income is that level of income where all the factors of production are fully employed in the production process. Recall that equilibrium attained at the point of equality of Y (Income) and AD by itself does not signify full employment of resources. Equilibrium only means that, if left to itself, the level of income in the economy will not change even when there is unemployment in the economy.
The equilibrium level of output may be more or less than the full employment level of output. If it is less than the full employment of output, it is due to the fact that demand is not enough to employ all factors of production. This situation is called the situation of deficient demand. It leads to a decline in prices in the long run. On the other hand, if the equilibrium level of output is more than the full employment level, it is due to the fact that the demand is more than the level of output produced at full employment level. This situation is called the situation of excess demand. It will lead to a rise in prices in the long run.
Question 41:
Level of employment is determined by which of the following?
Full employment level is the level where ........
The level of output is determined by the ......
If output equilibrium is less than the full employment level, then this condition is known as:
Excess demand is the situation where ......
Passage – GST: One Nation, One Tax, One Market
Goods and Service Tax (GST) is the single comprehensive indirect tax, operational from 1 July 2017, on supply of goods and services, right from the manufacturer/service provider to the consumer. It is a destination-based consumption tax with facility of Input Tax Credit in the supply chain. It is applicable throughout the country with one rate for one type of goods/service. It has amalgamated a large number of Central and State taxes and cesses. It has replaced large number of taxes on goods and services levied on production/sale of goods or provision of service.
As there have been a number of intermediate goods/services, which were manufactured/provided in the economy, the pre-GST tax regime imposed taxes not on the value added at each stage but on the total value of the commodity/service with minimal facility of utilisation of Input Tax Credit (ITC). The total value included taxes paid on intermediate goods/services. This amounted to cascading of tax. Under GST, the tax is discharged at every stage of supply and the credit of tax paid at the previous stage is available for set off at the next stage of supply of goods and/or services. It is thus effectively a tax on value addition at each stage of supply.
In view of our large and fast-growing economy, it addresses to establish parity in taxation across the country, and extend principles of ‘value-added taxation’ to all goods and services. It has replaced various types of taxes/cesses, levied by the Central and State/UT Governments. Some of the major taxes that were levied by Centre were Central Excise Duty, Service Tax, Central Sales Tax, Cesses like KKC and SBC. The major State taxes were VAT/Sales Tax, Entry Tax, Luxury Tax, Octroi, Entertainment Tax, Taxes on Advertisements, Taxes on Lottery/Betting/Gambling, State Cesses on goods etc. These have been subsumed in GST.
Question 46:
Goods & Services Tax (GST) is which of the following type of tax?
Which of the following feature of GST removes/reduces the cascading effect?
GST is the amalgamation of which of the following taxes?
From the following which product has been kept out from the GST ambit?
Why GST is considered as unified tax system?
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