Economics: CUET Mock Test - 9 - CUET MCQ

The correct answer is (A) - (IV), (B) - (III), (C) - (I), (D) - (II).
Key Points

• India is on the cusp of a major transformational change as it transitions towards a low-carbon economy. ⇒ Less emission of carbon dioxide.
• The Government of India regulates the prices of ethanol derived from various sources and procures it through Oil Marketing Companies at pre-determined prices. However, ethanol primarily derived from molasses and sugarcane juice can ignite a fuel vs food security debate, ⇒ Derived from sugarcane juice and molasses.
• Methanol, on the other hand, can be derived from different sources such as natural gas, coal, naphtha, biomass, etc. ⇒ Derived from biomass, naphtha, etc.
• The Government of India regulates the prices of ethanol derived from various sources and procures it through Oil Marketing Companies at pre-determined prices. ⇒ Procure ethanol for the government.

The correct answer is (B) and (D) and (E) only.
Key Points

Methanol is preferred as an alternate fuel over ethanol because it will not create a fuel vs food security debate and is derived from coal, which is abundantly available in India. It is also a relatively cleaner fuel than gasoline. Therefore, the correct answer is (B) and (D) only.

The correct answer is 15 percent.
Key Points

India meets 85% of its crude oil requirement, 53% of its natural gas requirement, and 25% of its coal requirement through imports.

So, India meets its crude oil requirements through domestic sources of 15%.

The correct answer is the Sustainable use of cleaner fuels.
Key Points

'Presence of the sentence 'The energy policies of the country and those on the anvil demonstrate and focus on the country's transition toward cleaner fuels in a sustainable manner.' in the aforementioned paragraph states that new energy policies of the country aimed at promoting sustainable use of clear fuels.

The correct answer is Fossil fuel.
Key Points

• 'Alternative fuels' can be defined as sources of energy or fuels that can partially or completely replace fossil oil sources in the transportation sector.
• 'Alternate fuels' refer to non-conventional sources of energy that can replace conventional fossil fuels like coal, oil, and natural gas. In this case study, Ethanol and Methanol are mentioned as alternate fuels.

Hence, alternative fuel refers to fossil fuels.

Key Points

• Indifference curves are generally convex to the origin. This convexity implies that as a consumer substitutes one good for another, the amount of the substituted good required to maintain the same level of utility increases. This reflects the principle of diminishing marginal rate of substitution, where the consumer needs increasingly more of one good to compensate for giving up units of another good, maintaining the same level of overall satisfaction.

The correct answer is Bundles which are considered indifferent by the consumer

Key PointsAn indifference curve represents a series of combinations of two goods between which a consumer is indifferent, meaning that each combination offers the same level of utility or satisfaction. Thus, the consumer has no preference for one combination over another along the same curve, as all provide equivalent satisfaction.

The correct answer is Monotonic preference.

Key PointsA rational consumer is the one who has Monotonic preference. Monotonic preference
A rational consumer with monotonic preferences always prefers more of at least one good, holding other factors constant, without being worse off in terms of consumption of other goods. This preference indicates that more of a good is better, which aligns with the typical assumption in economic theory that consumers always prefer more of a good to less, assuming all else remains equal. This property helps define the consumer's rationality in decision-making by aligning with the goal of maximizing utility.

Correct answer is option 3) Tea and Coffee.

Key PointsTea and coffee are classic examples of substitute goods. They both fulfill a similar need (i.e., a caffeinated beverage) and can be replaced with one another depending on availability, preference, or price changes. When the price of one increases, consumers might switch to the other, demonstrating their substitutability.

The correct answer is Option 4) Same

Key Points

• When the budget line is tangent to an indifference curve at a point, the slope of the budget line (which represents the price ratio of the two goods) equals the absolute value of the MRS at that point. The MRS represents the rate at which a consumer is willing to trade off one good for another while maintaining the same level of utility. This equality of slopes signifies that the consumer is optimizing their utility given their budget constraints.

It was based on minimum daily requirement of 2,400 and 2,100 calories for an adult in rural and urban areas, respectively.

Valmiki Ambedkar Awas Yojana (VAMBAY) is a centrally sponsored scheme for the benefit of Slum Dwellers. The objective of Valmiki Ambedkar Awas Yojana (VAMBAY) is primarily to provide shelter or upgrade the existing shelter for people living Below Poverty Line in Urban Slums, with a view to achieve the goal of “Shelter for All”.

There is a large gap between the conceptual understanding of poverty and its measurement in both rural and urban areas. Poverty is understood to encompass many different aspects including inadequate consumption, inadequate income and asset base, and inadequate access to basic infrastructure and services. For urban poverty, at the very least it should reflect the income needed not only to purchase sufficient food but also to obtain a secure shelter with adequate quality water, sanitation and garbage collection, to pay for transport and for keeping children at school, and to afford health care and medicines when needed. The ‘non-food’ monetary costs of avoiding poverty are generally higher in urban areas than in rural areas, as access to housing, resources and services are monetized – and usually particularly expensive in larger or more prosperous cities.

Churning poor is a sub category of poor, in which a person keeps on struggling to stay above the poverty line. In this type they regularly move in and out of poverty.

Antyodya anna yogna i.e AAY provides food grains to poor people at cheap price. it is supported by the government.

Swaran Jayanti Shahari Rozgar Yojna. The Urban Self-Employment Program and the Urban Wage Employment Program are two special schemes of the SJSRY initiated in December 1997, which replaced various programs operated earlier for urban poverty alleviation

Jawahar Gram Samridhi Yojana (JGSY) AKA Jawahar Rozgar Yojana (JRY). Launched on 1st April 1999, which was designed for the purpose of improving the quality of life of the rural poor by providing them additional gainful employment.

The poverty line is set on the basis of monthly spending on food, education, health, electricity and transport. According to this estimate, in year 2000 a person who earns below Rs. 15.14 in urban areas in a day are defined as living below the poverty line which makes it 454 per month.

Wages are to be paid partly in cash and partly in food grains.  Grains should be at least 5 kg of the wages, and cash should be at least 25%.