CUET-UG Economics / Business Economics Test Questions | Practice Test / Quiz / MCQs

1. Match the situations given in Column I with their respective implications given in Column II: Column-I Column-II (a) Migration (i) Reduced in per capita economic growth (b) Low level of (ii) Imbalance between academic standards demand and supply of human resource (c) Population-High (iii) Brain Drain Growth rate (d) Lack of proper (iv) M ism atch b etw een manpower planning req u ired sk ill an d academic standards Codes: (a) (b) (c) (d)

(ii) (iii) (iv) (i)(i) (ii) (iii) (iv)(ii) (iv) (i) (iii) Directions (Qs. No. 39-44): These questions are to be answered on the basis of the following data. 2019-2020 2020-2021 Actuals Budget Estimates1. Revenue Receipts 1684059 2020926 Tax Revenue (Net to Centre) 1356902 1635909 Non Tax (iii) (iv) (i) (ii)

2. Read the following statements - Assertion (A) and
Reason (R), Choose one of the correct alternatives given below:
Assertion (A) : Since Independence, the economic conditions of many farmers across India has improved as they have adopted horticulture as a secondary source of income. Reason(R) : Varying climatic and soil conditions have given India an added advantage to b e the pro du cer o f d iv erse horticultural crops. Alternatives:

Both Assertion (A) and Reason (R) are true andReason (R) is not the correct explanation ofAssertion (A).Assertion (A) is false but Reason (R) is true.Both Assertion (A) and Reason (R) are true andReason (R) is the correct explanation of Assertion (A).Assertion (A) is true but Reason (R) is false.

3. Identify which of the following is not a function of the Reserve Bank of India?

To act as the custodian of the gold reserve of IndiaTo act as the financial advisor to the Government of IndiaTo act as the banker to the Government of India.To issue coins and one rupee note

4. Read the following statements carefully and choose the correct alternative from the following: Statement 1 : Demonetization was the step taken by the Government of India in order to tackle the problems of corruption, black money, terrorism and circulation of fake currency in the Indian Economy. Statement 2 : Demonetization has ensured improved tax compliance in India over the period of time. Alternatives:

Statement 2 is true and Statement 1 is falseBoth the statements are true.Both the statements are false.Statement 1 is true and Statement 2 is false

5. The Government of India has decided to vaccinate the adult population of India (with Covaxin/Covishield), without any charge. This would be categorized as ____________.

revenue nature expenditurecapital nature incomerevenue nature incomecapital nature expenditure

6. Read the following statements - Assertion (A) and
Reason (R):
Assertion (A) : Acquisition of a domestic (Indian) company by a foreign (Australian) company will be recorded on the Sample Paper 3 credit side of Balance of Payment Account.
Reason (R) : It leads to outflow of foreign exchange from the domestic economy. From the given alternatives choose the correct one:

Assertion (A) is true but Reason (R) is false.Both Assertion (A) and Reason (R) are true andReason (R) is the correct explanation of Assertion (A).Both Assertion (A) and Reason (R) are true andReason (R) is not the correct explanation ofAssertion (A).Assertion (A) is false but Reason (R) is true.

7. Figure Showing Population below poverty line in some large states, 1973-2012 (%) Note: For the year 1973, Uttar Pradesh includes the present Uttarakhand; Madhya Pradesh includes Chhattisgarh and Bihar includes Jharkhand. On the basis of the given bar diagram, identify the states which are able to reduce the poverty level as compared to other states between 1973-2012.

Tamil Nadu, Gujrat, Bihar, Andhra PradeshAndhra Pradesh, Rajasthan, West Bengal and Tamil NaduBihar, Madhya Pradesh, West Bengal and OrissaRajasthan, Madhya Pradesh, Bihar and Uttar Pradesh

8. Read the following statements carefully and choose the correct alternatives given below: Statement 1 : Revenue and Capital receipts are increasing but borrowings and other liabilities are reducing. Statement 2 : Grants and aid for creation of capital assets decreased from 2019 to 2021. Alternatives:

Statement 2 is true and Statement 1 is falseBoth the statements are false.Both the statements are true.Statement 1 is true and Statement 2 is false

9. Identify the correct statement from the following:

Effective trade policies of commodity production, trad e and tariff p u rsu ed by th e co lo n ial government favorably affected the structure, composition and volum e of India's foreign trade.Liberal policies of commodity production, trade and tariff pursued by the colonial government adversely affected the structure, composition and volume of India's foreign trade.Restrictive policies of commodity production, trad e and tariff p u rsu ed by th e co lo n ial government adversely affected the structure, composition and volum e of India's foreign trade.Restrictive policies of commodity production, trad e and tariff p u rsu ed by th e co lo n ial government favorably affected the structure, composition and volume of India's foreign trade.

10. Read the following statements - Assertion (A) and
Reason (R), Choose one of the correct alternatives given below:
Assertion (A) : Since the default rates of farm loans have become chronically high due to multiple reasons, the rural banks are facing a lot of cash crunch. Reason(R) : Due to lack of proper storage facilities a lot of farm produce is wasted. Alternatives:

11. Read the following statements carefully and choose the correct alternative from the following:
Statement 1 : Public goods are those goods and services that are collectively consumed by the public.
Statement 2 : Public goods are excludable and rivalrous in nature. Alternatives:

Both the statements are false.Both the statements are true.Statement 1 is true and Statement 2 is falseStatement 2 is true and Statement 1 is false

12. Read the following statements carefully and choose the correct alternatives given below: Statement 1 : Timing and sequencing are critically important in the post-economic reform agenda. Statement 2 : Post pandemic reforms in India require a paradigm shift. Alternatives:

Both the statements are true.Statement 1 is true and Statement 2 is falseStatement 2 is true and Statement 1 is falseBoth the statements are false.

13. Read the following statements - Assertion (A) and
Reason (R):
Assertion (A) : T he 19 9 1 refo rm s released th e vitalities of Indian business persons.
Reason (R) : The reform agenda established a paradigm shift and defined the broad outlines of economic policy making for years to come. From the given alternatives choose the correct one:

Both Assertion (A) and Reason (R) are true andReason (R) is the correct explanation of Assertion (A).Both Assertion (A) and Reason (R) are true andReason (R) is not the correct explanation ofAssertion (A).Assertion (A) is false but Reason (R) is true.Assertion (A) is true but Reason (R) is false.

14. The value of recovery of loans has _________ crores between 2019-20 (Actual) and 2020-21 (Budgeted Estimate).

risen by ' 3349fallen by ' 3349fallen by ' 3439risen by ' 3439

15. In a hypothetical economy, Mr. Neeraj has deposited ' 100 in the bank. If it is assumed that there is no other currency circulation in the economy, then the total money supply in the economy will be _______.

' 120' 100zeronot defined

16. Identify which of the following is not an example of 'invisible item' under Current Account of the Balance of Payments transactions?

Merchandise linked transactionsAir and sea transportEducation-related travelPostal and courier services

18. National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 as a/the _______ body to coordinate the activities of all institutions involved in the rural financing system.

private creditcooperativemicro creditapex

19. Read the following statements - Assertion (A) and
Reason (R):
Assertion (A) : Major policy initiatives (land reforms and Green Revolution) helped India to become self-sufficient in food grains production.
Reason (R) : The proportion of people depending on agriculture did not decline as expected after the Green Revolution. From the given alternatives choose the correct one:

Both Assertion (A) and Reason (R) are true andReason (R) is not the correct explanation ofAssertion (A).Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation ofAssertion (A).Assertion (A) is true but Reason (R) is false.Assertion (A) is false but Reason (R) is true.

21. In the light of the given text and common knowledge, identify the incorrect statement:

A severe balance of payments problem triggered an acute economic crisis in 1991.In 1991, the economic and political leadership launched a multipronged reforms agenda to repair the macroeconomic situation of the nation.In post 1991 situation, the state wasGiven the role of primary regulator of the economy.

22. Read the following statements carefully and choose the correct alternatives given below: Statement 1 : Subsidies do not add any burden on the financial health of a nation. Statement 2 : Complete removal of subsidies may violate the aim of equitable distribution of income. Alternatives:

Statement 2 is true and Statement 1 is falseBoth the statements are true.Statement 1 is true and Statement 2 is falseBoth the statements are false.

23. According to the given text, ________ was adopted as the guiding principle of governance and all governments since 1991.

ModernizationPrivatizationGlobalizationLiberalisation

24. Read the following statements - Assertion (A) and
Reason (R):
Assertion (A) : Human capital treats human beings as a m eans to an end (in crease in productivity).
Reason (R) : Human Capital Formation decreases by way of investments in education and health. From the given alternatives choose the correct one:

25. Two friends Mira and Sindhu were discussing the exchange rate systems. 'Under this system, the exchange rates are determined by the market forces of demand and supply. However, deliberate efforts are made by the competent authority to keep the exchange rates within a specific range'. The above-mentioned statement was given by Sindhu, identify the type of exchange rate system was she talking about?

Fixed Exchange RateManaged Fixed Exchange RateManaged Floating Exchange RateFloating Exchange Rate

25 Questions

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25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know? Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com