CUET 2026 Economics Mock Test Free | CUET Mock Test One

Question 1

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?

How to produce?

What to produce?

Whom to produced?

Where to produced?

Question 2

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?

Production Possibility Frontier

Isoquant Curve

Production Possibility Set

Isocost Line

Question 3

With the shifting demand curve leftward, arrange the following statement in sequential order.
(A) At any given price, demand is less.
(B) Excess supply will be there
(C) Some producers will decrease the prices of commodity.
(D) At new equilibrium, quantity and price will be less.

(B), (A), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(D), (B), (C), (A)

Question 4

Match List-I with 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 – (II) Marginal Utility
(C) Marginal utility declines as consumption increases – (III) Law of Diminishing Marginal Utility
(D) Amount of one good to forego for another maintaining same utility – (IV) Marginal rate of substitution

(A) – (II), (B) – (III), (C) – (I), (D) – (IV)

(A) – (I), (B) – (II), (C) – (III), (D) – (IV)

(A) – (III), (B) – (I), (C) – (II), (D) – (IV)

(A) – (IV), (B) – (III), (C) – (II), (D) – (I)

Question 5

A budget set is:

Any bundle as long as it costs less than or equal to the income

Any bundle that costs exactly equal to the income

Any bundle that costs less than the income

Any bundle that costs more than the income

Question 6

Which of the following statements regarding demand are correct?
(A) Market demand curve is derived by horizontal summation of individual demand curves
(B) Goods consumed together are complementary goods
(C) Price elasticity of demand measures responsiveness of demand to price changes
(D) If consumer preference increases, the demand curve shifts leftward

(A) and (C) only

(A), (B) and (C) only

(B), (C) and (D) only

(A), (B), (C) and (D)

Question 7

The relationship between the quantity of a good a consumer chooses to buy and its price is described by:

Supply Function

Demand Function

Market Function

Price Function

Question 8

Match List-I with List-II
(A) Relationship between variable input and output – (I) Average Product
(B) Output per unit of variable input – (II) Marginal Product
(C) Change in output per unit change in input – (III) Law of Variable Proportions
(D) Marginal product initially rises with employment level – (IV) Total Product

(A) – (IV), (B) – (I), (C) – (II), (D) – (III)

(A) – (I), (B) – (IV), (C) – (III), (D) – (II)

(A) – (II), (B) – (III), (C) – (IV), (D) – (I)

(A) – (III), (B) – (II), (C) – (I), (D) – (IV)

Question 9

In the long run:

At least one factor of production is fixed

All factors of production can be varied

Both factors are fixed

Some factors can be varied partially

Question 10

Profit is defined as:

Total Revenue + Total Cost

Total Cost – Total Revenue

Marginal Revenue – Marginal Cost

Total Revenue – Total Cost

Question 11

Decreasing returns to scale is depicted by which of the following?

f(tx₁,tx₂) = t·f(x₁,x₂)

f(tx₁,tx₂) > t·f(x₁,x₂)

f(tx₁,tx₂) < t·f(x₁,x₂)

f(tx₁,tx₂) = f(x₁,x₂)

Question 12

The change in total cost per unit of change in output refers to:

Average Fixed Cost

Average Variable Cost

Average Cost

Short Run Marginal Cost

Question 13

Average Fixed Cost (AFC) forms which of the following shape?

Straight Line

Parabola

Rectangular Hyperbola

Bell Curve

Question 14

At which point does the Marginal Cost (MC) curve intersect the Average Cost (AC) curve?

At maximum point of AC

At minimum point of AC

At any random point

MC and AC never intersect

Question 15

The point on the supply curve at which a firm earns only normal profit is called:

Break-even point

Average Profit

Long Run Average Cost

Fixed Cost

Question 16

Which of the following conditions must hold for a firm to maximise its profit?
(A) Price = Short run marginal Cost
(B) Short Run marginal cost curve is non-decreasing
(C) Price ≤ Marginal Cost
(D) Price ≥ Average variable cost

(B), (C) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(A), (B) and (D) only

Question 17

How does technological progress affect the firms’ supply curve?

Shift to the right

Shift to the left

Remain at same place

Shift in vertical shape

Question 18

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. What will be the price elasticity of demand?

0.3

0.2

0.5

0.4

Question 19

Which of the following is an example of floor price?

Minimum Support Price for Foodgrain

Price printed on any article

Price taken by Seller

Price asked by buyer to buy

Question 20

Who is the author of “The General Theory of Employment, Interest and Money”?

Adam Smith

David Ricardo

J.S. Mill

John Maynard Keynes

Question 21

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:

Multiplier Mechanism

Paradox of Thrift

Deficient Demand

Investment

Question 22

To measure consumer price index (CPI) which of the following years are taken into consideration?
(A) Current Year
(B) Preceding Year
(C) Base Year
(D) Succeeding Year

(A), (B) and (D) only

(A) and (C) only

(A), (B) and (C) only

(B), (C) and (D) only

Question 23

The index of prices of a given basket of commodities which are bought by the representative consumer is known as:

Consumer Price Index

Wholesale Price Index

Capital Good Index

Inflation

Question 24

Match List-I with List-II
(A) GDP at Market Price – (I) NDPMP – Net Product Taxes – Net Production Taxes
(B) NDP at Factor Cost – (II) GVA at basic prices – Net Production Taxes
(C) GVA at factor cost – (III) C+I+G+(X-M)
(D) GNP at Factor Cost – (IV) GNPMP – Net Product Taxes – Net Production Taxes

(A) – (I), (B) – (II), (C) – (III), (D) – (IV)

(A) – (III), (B) – (I), (C) – (II), (D) – (IV)

(A) – (I), (B) – (II), (C) – (IV), (D) – (III)

(A) – (III), (B) – (IV), (C) – (I), (D) – (II)

Question 25

When goods and services are evaluated at constant prices, the measured value is known as:

Nominal GDP

Inventory

Inflation

Real GDP

Question 26

Among the following, which are the functions of money?
(A) Medium of exchange
(B) Unit of account
(C) Bartering
(D) Store of value

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Question 27

Money deposited in the banks are considered __________ of the banks.

Asset

Net Worth

Liabilities

Statutory Liquid Ratio

Question 28

Match List-I with List-II
(A) Cash Reserve Ratio – (I) Central Bank of the Country
(B) Statutory Liquidity Ratio – (II) Interest rate at which money lent by Central Bank
(C) Lender of last resort – (III) Percentage of deposits kept as cash reserves
(D) Repo Rate – (IV) Reserves in liquid form in short term

(A) – (II), (B) – (III), (C) – (I), (D) – (IV)

(A) – (III), (B) – (II), (C) – (I), (D) – (IV)

(A) – (IV), (B) – (II), (C) – (I), (D) – (III)

(A) – (III), (B) – (IV), (C) – (I), (D) – (II)

Question 29

Currency notes and coins are called:

Fiat Money

Broad Money

Currency Base

Narrow Money

Question 30

Ex-post is depicted by which of the following:

What actually has happened

What actually will happen?

What is actually planned?

What should plan be

Question 31

When governments intervene in the market to expand or reduce the demand, this course of action is:

Allocative Function

Distribution Function

Stabilization Function

Fiscal Function

Question 32

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:

Balance of Trade

Balance of Payment

Capital Account Deficit

Net Invisibles

Question 33

Arrange the following steps of estimation of National Income by income method in proper sequence:
(A) Identification and classification of producing firms
(B) Estimation of NDPFC
(C) Estimation of NNPFC
(D) Classification of factor Income

(A), (B), (C), (D)

(A), (C), (B), (D)

(A), (D), (B), (C)

(A), (B), (D), (C)

Question 34

Arrange the following conditions from most to least liquid form:
(A) Currency + Demand Deposit + Savings deposits with Post Office
(B) Currency + Demand Deposit + Net time deposits + Total deposits with Post Office
(C) Currency + Demand Deposit
(D) Currency + Demand Deposit + Net time deposits of commercial banks

(A), (B), (C), (D)

(C), (A), (D), (B)

(B), (A), (D), (C)

(C), (B), (D), (A)

Question 35

Suppose an Indian manufacturer of steel acquires a steel manufacturing unit in Europe. This type of transaction is recorded in which of the following?

Current Account

Capital Account

Capital Market

Net Invisibles

Question 36

In deficit condition of Balance of Payment if the central bank sells foreign exchange then this transaction is known as:

Official reserve sale

Portfolio Investment

Net Invisibles

Net factor income

Question 37

When an individual buys foreign goods, this spending is known as:

Injection in the economy

Exchange rate market

Leakages from economy

Direct investment

Question 38

Arrange the following steps of calculation of National Income in sequence:
(A) Deduction of intermediate cost
(B) Estimation of value of output
(C) Add net factor income from abroad
(D) Deduction of depreciation and NIT

(A), (B), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(C), (D), (A), (B)

Question 39

Level of employment is determined by which of the following?

Output Equilibrium

Factor of Production

Capital Employed

Availability of Raw Material

Question 40

Full employment level is the level where:

Everyone in the economy got employment

Maximum Capital investment

All factors of production are fully employed in production

Excessive Demand

Question 41

The level of output is determined by the:

Full Employment

Excessive Demand

Marginal Output

Equality of Income (Y) with Aggregate Demand (AD)

Question 42

If output equilibrium is less than the full employment level, then this condition is known as:

Deficient Demand

Constant Demand

Marginal Demand

Aggregate Demand

Question 43

Excess demand is the situation where:

Output level is less than full employment level

Output level is equal to full employment level

Demand is more than output level at full employment level

Output level is marginally increasing

Question 44

Goods & Services Tax (GST) is which of the following type of tax?

Destination Based Tax

Direct Tax

Local Tax

Lump Sum Tax

Question 45

Which of the following feature of GST removes/reduces the cascading effect?

Destination Based Tax

Unified Tax

Input Tax Credit (ITC)

Unified Market

Question 46

GST is the amalgamation of which of the following taxes?

All Central taxes

All State Taxes

Large number of central and state indirect taxes

Large number of central direct taxes

Question 47

From the following which product has been kept out from the GST ambit?

Gold

Silver

Luxury Consumables

Tobacco

Question 48

Why GST is considered as unified tax system?

Because it is combination of multiple taxes

Because now country have only GST as indirect tax

Because it brought uniformity in tax rate across the country

Because it is a simple tax

Question 49

With keeping tax rate (T) constant if government purchases (G) increase, arrange the following considering the effect on total income:
(A) Rise in Planned Aggregate expenditure
(B) Government runs a deficit when G exceeds T
(C) Equilibrium income level increased
(D) Aggregate demand schedule shifts upward

(B), (A), (D), (C)

(A), (C), (B), (D)

(A), (B), (D), (C)

(C), (B), (D), (A)

Question 50

Among the following statements about GST, identify the correct statement:

GST increased the tax burden on consumers

GST simplified the indirect tax structure in India

GST is applicable only on goods

GST is a direct tax

CUET 2026 Economics Mock Test Free | CUET Mock Test One

📊 Economics Mock Test

🎉 Test Completed!

📝 Answer Key & Explanations

Class 12 Indian Economy Chapter 1 Notes PDF | Indian economy notes PDF Download

Class 10 Economics Chapter 2 MCQ | Sectors of the Indian Economy Important MCQ

Class 12 Economics Money And Banking Notes | Economics Chapter 2 Important Notes

Class 12 Economics National Income Notes | Economics Chapter 1 Notes

National Income Important MCQ | Class 12 Economics Chapter 1 MCQ

Class 10 Economics Chapter 4 MCQ | GLOBALISATION AND THE INDIAN ECONOMY important MCQ

Leave a Reply Cancel reply

📊 Economics Mock Test

🎉 Test Completed!

📝 Answer Key & Explanations

Similar Posts

Leave a Reply Cancel reply