CUET UG 2025 — Economics Macro

2025mcqeasy

What is the base year?

Official previous-year question

Held on 22 May 2025 · Verified 13 Jul 2026.

Options

The correct option (or the base year itself) is:
2020

In macroeconomics, the base year serves as the benchmark year against which changes in prices and quantities are measured over time.

Given Baseline: The data explicitly states that the price and production for the year 2020 are used to calculate the initial GDP figure ( $100 \text{ Kg} \times \text{Rs } 10 = \text{Rs } 1,000$ ).
Current Price Framework: When evaluating subsequent years (like 2021), economists compare the new market realities (Rs 15 per kg) against this established starting point to distinguish between nominal growth (due to inflation) and real growth (due to an increase in actual production output from 100 Kg to 110 Kg).

Work through every CUET UG Macro PYQ, year by year.

Solution

The correct option (or the base year itself) is:
2020

In macroeconomics, the base year serves as the benchmark year against which changes in prices and quantities are measured over time.

Given Baseline: The data explicitly states that the price and production for the year 2020 are used to calculate the initial GDP figure ( $100 \text{ Kg} \times \text{Rs } 10 = \text{Rs } 1,000$ ).
Current Price Framework: When evaluating subsequent years (like 2021), economists compare the new market realities (Rs 15 per kg) against this established starting point to distinguish between nominal growth (due to inflation) and real growth (due to an increase in actual production output from 100 Kg to 110 Kg).