CUET UG 2022 — Macro

Economics all across the globe are facing the problem of deficient demand post covid 19. Such a situation in India can be corrected by : (Choose the correct alternative).

If the reserve ratio is 10% and the initial deposit with the commercial banks are Rs. 450 cr, the total money creation by the banking system will be :

Which of the following is a function of RBI ?

Given the following set of data calculate equilibrium income. C = 100 + 0.8 y. Investment = Rs. 260 Cr.

Which of the following explains the concept of depreciation: A. An annual allowance for wear and tear of a capital good. B. The capital good gradually used up in each year's production process. C. Cost of replacement of a capital good due to an accident. D. Fall in the value of fixed asset due to unexpected change in technology. E. Cost of the good divided by number of years of its useful life. Choose the correct answer from the options given below:

In a situation of Excess Demand. Choose the correct option. (A) Cash reserve ratio should decrease (B) Bank rate should increase (C) Statutory Liquidity Ratio should increase (D) Statutory Liquidity Ratio should decrease Choose the correct answer from the options given below :

The government in its budget has announced the construction of seven textile parks under the scheme of mega-investment textile parks. Which objective of the government budget is most likely being reflected here ? (Choose the correct alternative).

Identify the incorrect statement of the union budget of India 2022- 23.

What is the value of real GDP if nominal GDP is Rs.3300 crores and GDP deflator is 150.

_____ is included in the government budget as a capital receipt.

Which of the following is not a component of current account:

What is the value of education cess levied on Union taxes by the Government of India ?

If the equilibrium level of output is less than the full employment level, then it is a situation of:

When consumption function starts from y axis, it indicates that ?

Suppose you are a member of the "Advisory Committee to the Finance Minister of India". The finance minister is concerned about the rising Revenue Deficit in the budget. Which measure would you suggest to control the rising Revenue deficit of the government ?

GDPMP will be equal to GDPFC if

Suppose in an economy, the legal Required ratio fixed by the Central Bank is 20% and the value of initial deposits is $\overline{\mathbf{\tau}}$ 1000 crores. What is the value of loans extended by the Commercial Banks ?

Choose the correct sequence to arrive at $NNP_{FC}$ using value added method. (A) $GDP_{MP}$ - Depreciation (B) $NDP_{MP}$ - Net Indirect Taxes (C) Value of output - Intermediate cost (D) Domestic income + Net factor income from abroad Choose the correct answer from the options given below :

Cess on the luxury and sin goods benefitted.

Identify the quantitative tools used by RBI to control money supply. (A) Moral Suasion (B) Bank Rate (C) Cash Reserve Ratio (D) Open Market Operations (E) Margin requirement Choose the correct answer from the options given below :

If Gross Domestic Product at Market Price (GDPmp)=2995 crore. Private final consumption expenditure=1100 crore. Gross domestic fixed capital formation=1000 crore. Government final consumption expenditure=900 crore. Net imports=75 crore. The change of stock will be :

What will be the amount of initial reserves if Cash Reserve Ratio (CRR) is 20 % and total credit creation is Rs 500?

Devaluation of domestic currency will make :

Rs.60000 crore allocated to provide tap water connection to 3.8 crore household. Provision of tap water by the government is an example of:

'Rs. 48,000 cr is allotted for PM Awas Yojana in this years budget'. Identify the government objective fulfilled from the statement above.

Match **List - I** with **List - II**. | List - I (Transactions) | List - II (Heads) | |---|---| | (A) Loans extended by the Indian Government to the Sri Lankan Government | (I) Revenue Receipts | | (B) Expenditure by the Government on Covid Vaccines | (II) Capital Receipts | | (C) Dividend received by the Government on shares bought by it | (III) Capital Expenditure | | (D) Public Provident Fund held by Public | (IV) Revenue Expenditure | Choose the **correct** answer from the options given below :

_______ are deposits which have a fixed period of maturity.

Which of the following is considered as an intermediate good ?

Identify normal residents of India from amongst the following.

In an economy if equilibrium level of national is Rs. 2000 crores, Autonomous consumption = Rs. 400 crores and Investment expenditure = Rs. 200 crores, then MPC will be:

Buying and selling of government securities by the Reserve Bank of India to the public is called :

For the business community, which of the following relates to the Budget 2022 ?

Who among the following is responsible for controlling money supply in the economy ?

When all of an economy's output is sold during a single accounting year, the value of output is represented by:

A change in the exchange rate of the Indian rupee and the British Pound from Rs.95 for a pound to Rs.100 for a pound will mean:

Identify the items which will be classified as stock items. (A) Production (B) Money supply (C) Interest on deposits (D) Savings (E) Capital stock in a Country Choose the **correct** answer from the options given below :

Identify the fiscal measures from the following that will help correct excess demand A. Decrease in Repo rate. B. Increase in taxes. C. Decrease in government expenditure. D. Increase in Repo rate E. Decrease in taxes Choose the correct answer from the options given below:

The likely impact of a depreciation of the domestic currencies of the South East Asian Countries on exports to the US would be :

Which of the following will be included in national income, while using the income method to calculate the same:- (Choose the correct option)

Coal used by a steel factory during the accounting year is a:

Wealth tax and gift tax have never bought in large amount of revenue for the government and thus are referred to as _______.

From the equations given below, choose the equation which correctly represents the consumption function.

Which one of the following statement is true ?

Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium. National Income = Rs. 1000 Marginal propensity to save = 0.2 Investment expenditure = Rs. 150

Assume a two sector economy in the above diagram, the initial demand curve $AD_1$ shifts upward to $AD_2$ due to : 

In India coins are issued by _______.

High powered money comprises of :

Identify the stock variable from the following:

The currency issued by the Reserve Bank of India is called. A. High powered money B. Reserve money C. Bank money D. Monetary base E. Fiscal base Choose the correct answer from the options given below:

Which among the following is not a part of Qualitative measure of Monetary Policy of RBI ?

Which of the following formula is correct ?

Match List I with List II | LIST I (Concept under Theory of Income determination) | LIST II (Meaning) | |---|---| | A. Saving < Investment | I. When AD<AS | | B. $\frac{1}{1-mpc}$ | II. Under employment equilibrium | | C. National income will fall | III. Planned inventory would fall below the desired level | | D. AD=AS at a point less than full employment | IV. Multiplier | Choose the correct answer from the options given below:

Suppose a TV manufacturing unit wants to raise its inventories from 1000 units to 2000 units during the year. Expecting sale of 5000 units during the year, the firm produces 5000+1000= 6000 TV sets. Actual sale for the firm are 5000 TV sets during the year. This is an example of:

Match List - I with List - II. | List - I | List - II | |---|---| | (A) MPC (Marginal Propensity to Consume) | (I) $\frac{\Delta Y}{\Delta I}$ | | (B) MPS (Marginal Propensity to Save) | (II) $\frac{\Delta C}{\Delta Y}$ | | (C) K (Multiplier) | (III) C + I | | (D) AD (Aggregate Demand) | (IV) $\frac{\Delta S}{\Delta Y}$ | Choose the correct answer from the options given below :

Match **List - I** with **List - II**. | List - I (Banking) | List - II (Function) | |---|---| | (A) Commercial Bank | (I) Long term lending rate by RBI | | (B) Reserve Bank of India | (II) Short term lending rate by RBI | | (C) Bank Rate | (III) Credit creation | | (D) Repo Rate | (IV) Lender of last resort | Choose the **correct** answer from the options given below :

Items under 5% tax slab includes

Percent is excluded from GST four tier formation

Raising the value of country's currency under fixed exchange rate system is :

__________ can never be negative while __________ can have value as 1.

Which of the following is not a function of the Central Bank ?

Given the information in the passage, find out the fiscal deficit :

Identify the correct statements from the following: A. Revenue expenditure is any lay out that result in a decrease in financial assets or an increase in financial liabilities B. Capital expenditure is expenditure which results in creation of financial assets or reduction in financial liabilities C. Capital receipts are receipts which leads to reduction in financial assets or creation of liability D. Revenue receipts are receipts which lead to decrease in financial assets or increase of financial liability E. Revenue receipts are receipts which neither lead to reduction in financial assets nor creation of financial liability Choose the correct answer from the options given below:

Match List I with List II | List I - Foreign Exchange Rate | List II - Derived Meaning | | --- | --- | | A. Fixed exchange rate | I. Mixture of fixed and flexible exchange rate system. | | B. Floating exchange rate | II. Determined by government. | | C. Managed floating | III. Expectation of gain from appreciation of the currency | | D. Speculation | IV. Determined by market forces of demand and supply of forex | Choose the correct answer from the options given below:

If the value NVA_FC is Rs.200 crores, intermediate consumption is Rs.100 crores and depreciation is given as Rs.40 crores, what will be the value of GVA_FC?

Identify which of the following measures taken by RBI will increase the money supply. A. Increase in Cash Reserve Ratio B. Decrease in Cash Reserve Ratio C. Selling of a government bond D. Buying of a government bond E. Decrease in Bank Rate Choose the correct answer from the options given below:

Identify the monetary invention that can Close the inflationary group:

PM Gati Shakti- National master plan for multi-modal connectivity is an example of:

Match List With List II | List I Description in Budget speech | List II Figures in per cent | | --- | --- | | A. Projected Fiscal Deficit in 2022-23. | I. (-16.67%) | | B. States Fiscal deficit in 2022-23. | II. 6.4% of GDP | | C. Change in dis-investment proceedings in FY 2022-23. | III. 35.4% | | D. Change in Capex target in FY 2022-23. | IV. Upto 4% of GDP | Choose the correct answer from the options given below:

Commercial banks have generated Rs. 12,000 crores and CRR is 25%. Initial payments will be in the amount of:

Which of the following is a factor income?

If NNPMP=Rs. 5,330, indirect tax=Rs. 1,770 and consumption of fixed capital = Rs. 1,550 then GNPFC will be x. The value of x is.

Match List I with List II | LIST I (National income terminology) | LIST II (Known as) | |---|---| | A. Income generated by own account workers | I. Nominal national income | | B. National income at current prices | II. Corporate tax | | C. Component of profit | III. Change in stock | | D. Closing stock-opening stock | IV. Mixed income of self employed | Choose the correct answer from the options given below:

Identify the correct statements from the following: A. Fees to a mechanic paid by a firm is not included in the estimation of national income B. Income tax paid by an individual is not included in national income C. Interest paid by a garment manufacture on a loan taken from bank is included in national income D. Payment of old age pension will not be included in national income as it is a transfer payment E. Insurance premium paid by household to an insurance company is not included in the estimation of national income Choose the correct answer from the options given below:

If a farmer sells wheat to miller for Rs. 500 and miller sells flour to baker for Rs. 700 and baker sells bread to the consumer for Rs. 1000, then total value added by miller and baker is:

In an economy MPS=0.20 and investment is increased by Rs. 400 crores, than total increase in income is _____ Crores.

Pick out the incorrect one :

Identify the situation when value of Domestic Income is equal to the value of National Income.

If the autonomous consumption is given as 100 and the tendency of the people to increase consumption for an increase in income is only 20%, then derive the savings function.

If the level of effective demand is much below the level of full employment equilibrium then which situation will appear in the economy ?

Public Goods are always :

The likely impact of an appreciation of the US dollar, on imports of the South East Asian Countries from the US. would be :

Which of the following statements are incorrect ? (A) Circular flow of income does not take place in a closed economy. (B) Real flow consists of flow of factor services from households to firms. (C) In a two-sector economy, total production is always equal to total consumption. (D) Money flow consists of flow of factor payments from households to firms. Choose the correct answer from the options given below :

Suppose a country only produces bread. In the year 2000 it had produced 100 units of bread, price was Rs. 10 per bread. In 2001, the same country produced 110 units of bread at price was Rs. 15 per bread. In 2001, the nominal and real GDP are : (base year is 2000)

Match List - I with List - II. | List - I (Financial Terms) | List - II (Examples) | | --- | --- | | (A) Monetary Base | (I) Loans extended by banks | | (B) Assets | (II) Reserve Bank of India | | (C) Liabilities | (III) Currency | | (D) Credit control | (IV) Deposits accepted by the banks | Choose the correct answer from the options given below :

Which of the following is not a reason for excess demand ?

Identify the statement that stands true during deficient demand : (A) Actual output falls short of potential output (B) Potential output falls short of actual output (C) Actual demand is less than expected demand (D) Expected demand is less than actual demand Choose the correct answer from the options given below :

Suppose in an economy there are only two firms A and B. Calculate Gross Domestic Product at Market Price from the given table. | Items | Firm A | Firm B | | --- | --- | --- | | Sales | 50 Cr | 200 Cr | | Change in stock | +20 Cr | -30 Cr | | Intermediate Consumption | 0 | 100 Cr |

Match List - I with List - II. | List - I (Budgetary Terms) | List - II (Accounting Head) | | --- | --- | | (A) Interest Payments | (I) Revenue Receipts | | (B) Grants-in-aid received | (II) Capital Expenditure | | (C) Borrowings and other liabilities | (III) Revenue Expenditure | | (D) Construction of flyover | (IV) Capital Receipts | Choose the correct answer from the options given below :

Which of the following statements is true ? (A) Fiscal deficit is the difference between the government's budgetary expenditure and budgetary receipts excluding borrowings. (B) Primary deficit is the difference between total receipts and interest payments. (C) Increase in revenue deficit will always lead to higher fiscal deficit. (D) Primary deficit equals revenue deficit less interest payments. (E) Revenue deficit refers to excess of government's revenue expenditure over its revenue receipts. Choose the correct answer from the options given below :

What does breakeven point indicate ? (A) MPS = 0 (B) APC = 1 (C) MPS = 1 (D) APS = 0 Choose the correct answer from the options given below :

Which of the following is NOT included in estimation of national income ?

Which of the following components, is NOT a part of compensation of employees, while estimating national income ?

Deposits which are payable on demand are called _______.

Assume that in an economy increased consumption is equal to increased saving, how many times will the national income increase in such an economy with an increase in investment?

Which of the following is included in the estimation of National Income ?

Which of the following is true about the aggregate demand curve in the short run; Choose the correct option:

Identify Indirect Tax among the following :

Identify the correct statements regarding money supply (A) Money supply is a stock concept. (B) Money supply is a flow concept. (C) Money supply is the currency (cash and coins) with the public and demand deposit in banks. (D) Money supply is the currency held with banks. (E) Money supply is the concept of real flow. Choose the correct answer from the options given below :

Identify the correct statement from the following: A. Consumption curve starts from the origin B. The sum of APC and APS is equal to 1 C. Aggregate demand and market demand mean the same D. The value of MPC and MPS varies between 0 and 1 E. At breakeven point saving is zero Choose the correct answer from the options given below:

Identify the correct statements about the externalities as a limitation of GDP and welfare. A. GDP as measured does not include external production of goods. B. Inverse relationship between negative externality and welfare. C. No relation between GDP and welfare. D. Economic activities have both positive and negative externalities. E. Producers are rewarded with profit for positive externalities Choose the correct answer from the options given below :

Identify the correct statement from the following: A. The Household's investing is not considered to be the cost of building a residence B. Net factor revenue from overseas includes money from Exports C. The sum of factor incomes equals the net value added D. The assessment of national income takes into account the market value of both final and intermediate items E. Profit earned by non-resident company in India is a part of domestic income of India Choose the correct answer from the options given below:

What would be the value of investment multiplier if MPC = MPS ?

Identify direct taxes from the following : (A) Goods and Services Tax (B) Corporate Tax (C) Capital Gains Tax (D) Value Added Tax Choose the correct answer from the options given below :

Indian Real Estate Company receives rent from Microsoft from London. This transaction will be recorded in __________ Account.

Arrange the following statements relating to appreciation of domestic currency in the correct sequence. (A) The demand curve for foreign exchange shifts to the right of the original demand curve (B) Due to some reason the exchange rate falls to 1$ = Rs. 70 (C) The initial exchange rate is 1$ = Rs. 75 (D) This increase the demand for foreign goods and services by Indians Choose the correct answer from the options given below :

Which out of the following are intermediate goods ? (A) Milk purchased by a household (B) Sugar purchased by a restaurant (C) Furniture purchased by school (D) Chalk and duster purchased by school (E) Printer purchased by a lawyer Choose the **correct** answer from the options given below :

Match List - I with List - II. | List - I (Concept) | List - II (Meaning) | |---|---| | (A) Trade surplus | (I) Excess of the payments for import of goods over the receipts for export of goods | | (B) Devaluation of currency | (II) Excess of exports of goods over the imports of goods | | (C) Trade deficit | (III) Fall in the external value of a domestic currency as notified by the government of the country | | (D) Balance of trade | (IV) Difference between the value of exports and value of imports of goods of a country | Choose the correct answer from the options given below :

If the ratio between MPC and MPS is 4:1, the value of investment multiplier will be:

A producer plans to add Rs.200 worth of goods to her stock by the end of the year. However due to an unexpected fall in the demand for her goods she adds Rs.250 worth of goods. Her ex-ante investment was____ and ex post investment was____

If a Country's real GDP is $\overline{\mathbf{\tau}}$ 400 crores and its nominal GDP is $\overline{\mathbf{\tau}}$ 1000 crores, its GDP deflator is : (Choose the correct alternative).

Identify the correct statements from the following: A. Currency is issued by the nation's Central Bank B. To address the budget deficit, Central Bank sends money to the government C. The economy's foreign exchange reserves are preserved by Central Bank D. Central Bank does not control money supply and credit through monetary policy E. Central Bank gives loans to the commercial Banks for short term Choose the correct answer from the options given below :

The size of investment multiplier (k) depends on:-

Actual aggregate demand's gap from that needed to achieve full employment equilibrium is referred to as:

Strategic transfer of ownership of Air India will lead to:

Economic variables such as 'National Income' and 'profits' can be classified under which of the following heads ?

Suppose the producers plans to add Rs. 100 cr worth of goods to her stock by the end of the year. However, due to an unforeseen upsurge of demand for her goods in the market, she had to sell goods worth Rs. 30 cr from her existing stock. Now, determine Ex-ante Investment and Ex-post Investment from the above information.

Marginal propensity to save in zero when.

In a time of deflation, the Central Bank should:

Identify which of the following are included in National Income ? (A) Gifts from abroad (B) Compensation of employees paid by a company located in India (C) Prize won in a lottery (D) Purchase of NCERT textbook by a student Choose the correct answer from the options given below :

Identify the most unlikely reason or appreciation of the US dollar.

If MPC = 0.75, autonomous consumption = 100 crore, then find the level of consumption at income level = 8,000 crore :

Which of the following correctly represents value at market price?

Which of the following is an example of Goods and service tax (GST)

Given the consumption function of an economy C = 200 + 0.25 Y, what is the value of slope of the savings function ?

The likely reason for investors from Western Countries pulling out their investments from these nations was :

Which of the following deficit shows excess of government expenditure over receipts other than burden of interest payments ?

In India currency notes are issued by _______.

In an economy, every time the National Income rises 20% of the rises in income is saved by households. Now suppose there is a rise in investment by $\overline{\mathbf{\tau}}$ 100 crores, then the National Income in this economy will rise by :

Owing to the current political instability across many countries, the Indian rupee has sharply lost its value in terms of US dollars. The impact of this would be : (A) A rise in imports from USA (B) A fall in imports from USA (C) A rise in exports to USA (D) A fall in exports to USA Choose the correct answer from the options given below :

Given below are the steps for calculation of National Income by value added method. Place them in the correct sequence. (A) Estimate Gross Domestic Product at market price (B) Calculate Net Domestic Product at factor cost (C) Estimation of value of output produced by each firm in all sectors of the economy during the year (D) Calculate Net National Product at factor cost Choose the correct answer from the options given below :

In an Economy, AD = Rs.250 cr+0.6Y and at zero level of income consumption is Rs.150 crores The value of autonomous investment will be:

The likely impact on the Balance of payment position of Countries facing a financial crisis would be :

Identify the incorrect statement. (A) Money is what money does (B) There are many assets which carry functions of money (C) In modern sense, money creates instability (D) The first and foremost role of money is that it acts as medium of exchange (E) Money acts only as convenient unit of account Choose the **correct** answer from the options given below :

At equilibrium level of income in an economy: