List of top Economics Questions asked in CUET (PG)

Which of the following is not a part of the national income?

Match List-I with List-II:

List-I		List-II
A	\( y = ln(x)\)	I	\(\frac{1}{x}\)
B	\(y=\frac{x^2}{4}\)	II	\(3x^2\)
C	\(y=x^3\)	III	\(\frac{x}{2}\)
D	\(y=x+1\)	IV	\(1\)

Choose the correct answer from the options given below

A utility maximizing consumer has a utility function given by \(U(X,Y)=2X+Y\). He has a budget constraint given by \(X+2Y=10\). In equilibrium he purchases:

If a group of countries abolish trade barriers between themselves and set common tariffs for other countries, this is known as:

Stagflation describes a situation of:

In a 2x2 general equilibrium model of exchange with goods X and Y and two consumers 1 and 2, both of whom have a weakly positive endowment of X and Y. In the exchange equilibrium, we know that:

The current account balance in an open economy:

Transfer pricing refers to:

If a consumer definitely prefers a payment of INR 50 for sure to a lottery which promises rewards of INR 100 or INR 0 with probabilities of 1/2 each, then we can say that the consumer is:

The shutdown point for a profit maximizing competitive firm in the short run is when the market price is equal to the:

The mark-up as a fraction of price for the profit-maximizing quantity \( Q^{*} \) for a monopolist can be expressed in the following form:
\(\frac{p^{*} - C(Q^{*})}{p^{*}} = -\frac{1}{e^{*}}.\)
We can say from this that:

Services such as the provision of clean air and national security are considered to be:

Debts which have to be paid at some specific future date are known as:

Mr Tokai is very particular in how he makes his coffee. He is completely inflexible in that he can only take 1 teaspoon of coffee with 2 teaspoons of sugar. Any more coffee or sugar given to him is discarded in his quest for the perfect coffee. Suppose you give him 9 teaspoons of coffee and 2 teaspoons of sugar. How many cups of coffee can he create from this?

Suppose an individual has a utility function given by, \(U(x,y)=2x+3y\). We can say that this function displays:

An allocation for agents in an economy, x, is said to be Pareto superior to another allocation y if moving from allocation y to allocation x:

For inferior goods, the substitution effect of a price decrease and the income effect of the same price decrease:

For a manufacturing firm, the cost function is given by \(C = q^{3} + 2q^{2} + q + 1.\) The marginal and average costs at \(q = 10\) units are respectively given by:

In the table below, firm 1 and firm 2 can cooperate to share market profits or compete with each other. The figures in the cells represent the profits in crores of INR. They can either cooperate with each other where they share INR 10 crores equally. Alternatively, they can compete, which lowers the market output to INR 4 crores, which they share equally. If one of the firms competes while the other cooperates, the former obtains INR 10 crore of profit while the other makes zero profit. In equilibrium, firm A and firm B should respectively:

Firm 2	Cooperate	Compete
Firm 1	5, 5	0, 10
Compete	10,0	2, 2

In Ronald Coase's Nobel winning Coase theorem, if two bargaining parties have zero transaction costs, well-defined property rights over the good and there are no income effects:

Keeping a consumer’s income constant, if bundle X is chosen by a consumer when bundle Y is available, then when bundle Y is chosen, X must not be a feasible alternative. This property of consumer behaviour is known as:

In an oligopolistic market, firm i and firm j have constant marginal cost = c for an identical good. They compete to set prices Pi and Pj. The demand for total market demand Q, where if \(P_i > P_j\), the demand for firm i is 0. If \(P_i < P_j\), the demand for firm i is Q. If \(P_₁ = P_j\), then they share the market equally and hence the demand for firm i is \(\frac{Q}{2}\). In equilibrium, the prices of firms i and j are:

If Y = F(L,K) is a linear homogeneous production function, then multiplying all inputs by a constant factor α = 2 results in output increasing by a factor of:

If a Production Function is given as Q(x,y) = Axay, where (a + b) = 2, the function is said to display:

A trade-off is: