CUET Economics Previous Year Paper 2025 (with Solution) - Economics CUET Preparation

 Page 1


Previous Years' Paper 
Common University Entrance Test for UG Programmes 
CUET-UG - Economics and Business Economics 
Entrance Exam, 2025 
 
Q.1. Whether to use more resources in education and health or to use more 
resources in building military services. Which of the central problems of an 
economy is accurate for this? 
1. How to produce? 
2. What to produce?  
3. Whom to produced?  
4. Where to produced? 
Q.2. The collection of all possible combinations of the goods and services that 
can be produced from a given amount of resources and a given stock of 
technological knowledge is called? 
1. Production Possibility Frontier 
2. Isoquant Curve  
3. Production Possibility Set 
4. Isocost Line 
Q.3. With the shifting demand curve leftward, arrange the following statement 
in sequential order. 
(A) At any given price, demand is less. 
(B) Ex???uppwill bo thoro 
(C) Some producers will decrease the prices of commodity. 
(D) At new equilibrium, quantity and price will be less. 
Page 2


Previous Years' Paper 
Common University Entrance Test for UG Programmes 
CUET-UG - Economics and Business Economics 
Entrance Exam, 2025 
 
Q.1. Whether to use more resources in education and health or to use more 
resources in building military services. Which of the central problems of an 
economy is accurate for this? 
1. How to produce? 
2. What to produce?  
3. Whom to produced?  
4. Where to produced? 
Q.2. The collection of all possible combinations of the goods and services that 
can be produced from a given amount of resources and a given stock of 
technological knowledge is called? 
1. Production Possibility Frontier 
2. Isoquant Curve  
3. Production Possibility Set 
4. Isocost Line 
Q.3. With the shifting demand curve leftward, arrange the following statement 
in sequential order. 
(A) At any given price, demand is less. 
(B) Ex???uppwill bo thoro 
(C) Some producers will decrease the prices of commodity. 
(D) At new equilibrium, quantity and price will be less. 
Choose the correct answer from the options given below: 
1. (B), (A), (C), (D)  
2. (A), (C), (B), (D)  
3. (B), (A), (D), (C)  
4. (D), (B), (C), (A) 
Q.4. Match List-I with List-II 
List-I List-I1 
(A) Analysis assumes that level of 
utility can be expressed in numbers. 
(1) Cardinal Utility 
(B) Change in total utility due to 
consumption of one additional unit 
of a commodity 
(II) Law of Diminishing Morainal 
tility 
(C) Marginal utility from consuming 
each additional unit of a commodity 
declines as its consumption 
increases. 
(III) Marginal Utility 
(D) The amount of mangoes that the 
consumer has to forego in order to 
get an additional banana, her total 
utility level being the same. 
(IV) Marginal rate of substitution 
 
Choose the correct answer from the options given below: 
1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)  
2. (A) - (I), (B) - (III), (C) - (II), (D) - (IV)  
3. (A) - (I), (B) - (I), (C) - (IV), (D) - (III)  
4. (A)- (III). (B) - (IV), (C) – (I), (D) - (II) 
Q.5. Budget Set is _____________ 
1. Given the prices of the goods and the income of a consumer.  
2. Any bundle as long as it costs less than or equal to the income  
3. A set of price available to producer.  
Page 3


Previous Years' Paper 
Common University Entrance Test for UG Programmes 
CUET-UG - Economics and Business Economics 
Entrance Exam, 2025 
 
Q.1. Whether to use more resources in education and health or to use more 
resources in building military services. Which of the central problems of an 
economy is accurate for this? 
1. How to produce? 
2. What to produce?  
3. Whom to produced?  
4. Where to produced? 
Q.2. The collection of all possible combinations of the goods and services that 
can be produced from a given amount of resources and a given stock of 
technological knowledge is called? 
1. Production Possibility Frontier 
2. Isoquant Curve  
3. Production Possibility Set 
4. Isocost Line 
Q.3. With the shifting demand curve leftward, arrange the following statement 
in sequential order. 
(A) At any given price, demand is less. 
(B) Ex???uppwill bo thoro 
(C) Some producers will decrease the prices of commodity. 
(D) At new equilibrium, quantity and price will be less. 
Choose the correct answer from the options given below: 
1. (B), (A), (C), (D)  
2. (A), (C), (B), (D)  
3. (B), (A), (D), (C)  
4. (D), (B), (C), (A) 
Q.4. Match List-I with List-II 
List-I List-I1 
(A) Analysis assumes that level of 
utility can be expressed in numbers. 
(1) Cardinal Utility 
(B) Change in total utility due to 
consumption of one additional unit 
of a commodity 
(II) Law of Diminishing Morainal 
tility 
(C) Marginal utility from consuming 
each additional unit of a commodity 
declines as its consumption 
increases. 
(III) Marginal Utility 
(D) The amount of mangoes that the 
consumer has to forego in order to 
get an additional banana, her total 
utility level being the same. 
(IV) Marginal rate of substitution 
 
Choose the correct answer from the options given below: 
1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)  
2. (A) - (I), (B) - (III), (C) - (II), (D) - (IV)  
3. (A) - (I), (B) - (I), (C) - (IV), (D) - (III)  
4. (A)- (III). (B) - (IV), (C) – (I), (D) - (II) 
Q.5. Budget Set is _____________ 
1. Given the prices of the goods and the income of a consumer.  
2. Any bundle as long as it costs less than or equal to the income  
3. A set of price available to producer.  
4. Set of bundles available to the consumer 
Q.6. Find the correct statement/statements. 
(A) Goods which are consumed together are called complementary goods. 
(B) The market demand curve can be derived as a vertical summation of the 
individual demand curves.  
(C) Price elasticity of demand is a measure of the responsiveness of the 
demand for a good to changes in its price. 
(D) If the Consumer’s prefnref cbapge in favor ofa good the demapd curve for 
such od shifts leftward 
Choose the correct answer from the options given below: 
1. (A) and (C) only 
2. (A), (B) and (C) only 
3. (A) and (D) Only 
4. (B), (C) and (D) only 
Q.7. The relation between the consumer's optimal choice of the quantity of a 
good and its price is called? 
1. Supply function  
2. Demand Function 
3. Cost Function  
4. Output function 
Q.8. Match List-I with List-II 
List-I List-II 
(A) Relationship between the 
variable input and output. 
(I) Average Product 
(B) Output per unit of variable input. (II) Marginal Product 
(C) Change in output per unit of 
change in the input 
(III) Law of variable proportions 
Page 4


Previous Years' Paper 
Common University Entrance Test for UG Programmes 
CUET-UG - Economics and Business Economics 
Entrance Exam, 2025 
 
Q.1. Whether to use more resources in education and health or to use more 
resources in building military services. Which of the central problems of an 
economy is accurate for this? 
1. How to produce? 
2. What to produce?  
3. Whom to produced?  
4. Where to produced? 
Q.2. The collection of all possible combinations of the goods and services that 
can be produced from a given amount of resources and a given stock of 
technological knowledge is called? 
1. Production Possibility Frontier 
2. Isoquant Curve  
3. Production Possibility Set 
4. Isocost Line 
Q.3. With the shifting demand curve leftward, arrange the following statement 
in sequential order. 
(A) At any given price, demand is less. 
(B) Ex???uppwill bo thoro 
(C) Some producers will decrease the prices of commodity. 
(D) At new equilibrium, quantity and price will be less. 
Choose the correct answer from the options given below: 
1. (B), (A), (C), (D)  
2. (A), (C), (B), (D)  
3. (B), (A), (D), (C)  
4. (D), (B), (C), (A) 
Q.4. Match List-I with List-II 
List-I List-I1 
(A) Analysis assumes that level of 
utility can be expressed in numbers. 
(1) Cardinal Utility 
(B) Change in total utility due to 
consumption of one additional unit 
of a commodity 
(II) Law of Diminishing Morainal 
tility 
(C) Marginal utility from consuming 
each additional unit of a commodity 
declines as its consumption 
increases. 
(III) Marginal Utility 
(D) The amount of mangoes that the 
consumer has to forego in order to 
get an additional banana, her total 
utility level being the same. 
(IV) Marginal rate of substitution 
 
Choose the correct answer from the options given below: 
1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)  
2. (A) - (I), (B) - (III), (C) - (II), (D) - (IV)  
3. (A) - (I), (B) - (I), (C) - (IV), (D) - (III)  
4. (A)- (III). (B) - (IV), (C) – (I), (D) - (II) 
Q.5. Budget Set is _____________ 
1. Given the prices of the goods and the income of a consumer.  
2. Any bundle as long as it costs less than or equal to the income  
3. A set of price available to producer.  
4. Set of bundles available to the consumer 
Q.6. Find the correct statement/statements. 
(A) Goods which are consumed together are called complementary goods. 
(B) The market demand curve can be derived as a vertical summation of the 
individual demand curves.  
(C) Price elasticity of demand is a measure of the responsiveness of the 
demand for a good to changes in its price. 
(D) If the Consumer’s prefnref cbapge in favor ofa good the demapd curve for 
such od shifts leftward 
Choose the correct answer from the options given below: 
1. (A) and (C) only 
2. (A), (B) and (C) only 
3. (A) and (D) Only 
4. (B), (C) and (D) only 
Q.7. The relation between the consumer's optimal choice of the quantity of a 
good and its price is called? 
1. Supply function  
2. Demand Function 
3. Cost Function  
4. Output function 
Q.8. Match List-I with List-II 
List-I List-II 
(A) Relationship between the 
variable input and output. 
(I) Average Product 
(B) Output per unit of variable input. (II) Marginal Product 
(C) Change in output per unit of 
change in the input 
(III) Law of variable proportions 
(D) The marginal product of a factor 
input initially rises with its 
employment level 
(IV) Total Product 
 
Choose the correct answer from the options given below: 
1. (A) - (IV), (B) - (I), (C) - (II), (D) - (I1I)  
2. (A) - (1), (B) - (III), (C) - (II), (D)- (IV)  
3. (A) - (1), (B) (II), (C) - (IV), (D) - (III) 
4. (A)-(U) (B) -(IV), (0-(1) (D) – (II) 
Q.9. In the long run ______________________ 
1. At least one of the factor varied.  
2. All factors of production can be varied.  
3. Factor remains fixed.  
4. Only one factor can vary. 
Q.10. The difference between the revenue and cost is known as _____________  
1. Cost of Production  
2. Input cost  
3. Marginal Cost  
4. Profit 
Q.11. ___________ of an input is defined as the change in output per unit of change 
in the input when all other inputs are remain constant. 
1. Marginal Product.  
2. Average Product.  
3. Total Product.  
4. Returns to Scale. 
Page 5


Previous Years' Paper 
Common University Entrance Test for UG Programmes 
CUET-UG - Economics and Business Economics 
Entrance Exam, 2025 
 
Q.1. Whether to use more resources in education and health or to use more 
resources in building military services. Which of the central problems of an 
economy is accurate for this? 
1. How to produce? 
2. What to produce?  
3. Whom to produced?  
4. Where to produced? 
Q.2. The collection of all possible combinations of the goods and services that 
can be produced from a given amount of resources and a given stock of 
technological knowledge is called? 
1. Production Possibility Frontier 
2. Isoquant Curve  
3. Production Possibility Set 
4. Isocost Line 
Q.3. With the shifting demand curve leftward, arrange the following statement 
in sequential order. 
(A) At any given price, demand is less. 
(B) Ex???uppwill bo thoro 
(C) Some producers will decrease the prices of commodity. 
(D) At new equilibrium, quantity and price will be less. 
Choose the correct answer from the options given below: 
1. (B), (A), (C), (D)  
2. (A), (C), (B), (D)  
3. (B), (A), (D), (C)  
4. (D), (B), (C), (A) 
Q.4. Match List-I with List-II 
List-I List-I1 
(A) Analysis assumes that level of 
utility can be expressed in numbers. 
(1) Cardinal Utility 
(B) Change in total utility due to 
consumption of one additional unit 
of a commodity 
(II) Law of Diminishing Morainal 
tility 
(C) Marginal utility from consuming 
each additional unit of a commodity 
declines as its consumption 
increases. 
(III) Marginal Utility 
(D) The amount of mangoes that the 
consumer has to forego in order to 
get an additional banana, her total 
utility level being the same. 
(IV) Marginal rate of substitution 
 
Choose the correct answer from the options given below: 
1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)  
2. (A) - (I), (B) - (III), (C) - (II), (D) - (IV)  
3. (A) - (I), (B) - (I), (C) - (IV), (D) - (III)  
4. (A)- (III). (B) - (IV), (C) – (I), (D) - (II) 
Q.5. Budget Set is _____________ 
1. Given the prices of the goods and the income of a consumer.  
2. Any bundle as long as it costs less than or equal to the income  
3. A set of price available to producer.  
4. Set of bundles available to the consumer 
Q.6. Find the correct statement/statements. 
(A) Goods which are consumed together are called complementary goods. 
(B) The market demand curve can be derived as a vertical summation of the 
individual demand curves.  
(C) Price elasticity of demand is a measure of the responsiveness of the 
demand for a good to changes in its price. 
(D) If the Consumer’s prefnref cbapge in favor ofa good the demapd curve for 
such od shifts leftward 
Choose the correct answer from the options given below: 
1. (A) and (C) only 
2. (A), (B) and (C) only 
3. (A) and (D) Only 
4. (B), (C) and (D) only 
Q.7. The relation between the consumer's optimal choice of the quantity of a 
good and its price is called? 
1. Supply function  
2. Demand Function 
3. Cost Function  
4. Output function 
Q.8. Match List-I with List-II 
List-I List-II 
(A) Relationship between the 
variable input and output. 
(I) Average Product 
(B) Output per unit of variable input. (II) Marginal Product 
(C) Change in output per unit of 
change in the input 
(III) Law of variable proportions 
(D) The marginal product of a factor 
input initially rises with its 
employment level 
(IV) Total Product 
 
Choose the correct answer from the options given below: 
1. (A) - (IV), (B) - (I), (C) - (II), (D) - (I1I)  
2. (A) - (1), (B) - (III), (C) - (II), (D)- (IV)  
3. (A) - (1), (B) (II), (C) - (IV), (D) - (III) 
4. (A)-(U) (B) -(IV), (0-(1) (D) – (II) 
Q.9. In the long run ______________________ 
1. At least one of the factor varied.  
2. All factors of production can be varied.  
3. Factor remains fixed.  
4. Only one factor can vary. 
Q.10. The difference between the revenue and cost is known as _____________  
1. Cost of Production  
2. Input cost  
3. Marginal Cost  
4. Profit 
Q.11. ___________ of an input is defined as the change in output per unit of change 
in the input when all other inputs are remain constant. 
1. Marginal Product.  
2. Average Product.  
3. Total Product.  
4. Returns to Scale. 
Q.12. Consider the production function q = f(x 1, x2) where the firm produces q 
amout of output x1 amount of factor 1 and x2 amount of factor 2. The firm 
decides to increase the employment level of both the factors t (t >1). Identify 
the equation for decreasing returns to scale from the following: 
1. q = f(x1, x2) 
2. f (tx1, tx2) = t.f (x1, x2) 
3. f (tx1, tx2) < t.f (x1, x2). 
4. f (tx 1, tx 2) > t.fx 1, x 2 
Q.13. The change in total cost per unit of change in output is known as by which 
name 
1. Average Cost  
2. Variable Cost 
3. Fixed Cost 
4. Short Run Marginal Cost 
Q.14. Shape of Average Fixed Cost Curve is:  
1. Constant  
2. 'U' Shaped.  
3. Rectangular Hyperbola  
4. Reverse Hyperbola 
Q.15. Marginal cost curve intersects average cost curve at _____________ 
1. At maximum point of average cost curve.  
2. At minimum point from of average cost curve.  
3. Do not intersect.  
4. Intersect at mid point at rising average cost curve.