The National Testing Agency (NTA) conducted the CUET PG 2026 Economics (COQP10) examination on March 12, 2026, during Shift 2 from 12:30 PM to 02:00 PM. Students who appeared for the exam reported that the overall difficulty level of the paper was moderate. CUET PG 2026 Economics Question Paper with Solutions PDF is available here for Download
Based on candidate feedback, the question paper focused on domain knowledge, including Microeconomics, Macroeconomics, Mathematical Economics, Statistics, and Indian Economy. The marking scheme is +4 for correct answers and -1 for wrong answers, totaling 300 marks.
CUET PG 2026 Economics Question Paper with Solutions PDF
| CUET PG 2026 Economics Question Paper with Answer key | Download PDF | Check Solution |
Which among the following is not an assumption of Indifference Curve?
Curve shows the allocation of goods between two consumers, or of two inputs between two production functions
Goods are substitutes when an increase in price of one leads to of other commodity
The term convex means that the slope of the indifference curve along the curve.}
A zero economic profit means that the firm is earning a
Total cost curve of a firm is a
The efficient level of output is the level at which price of product is marginal social cost (MSC).
The following two characteristics define a particular type of market: A. Close substitute products are sold by firms B. Free entry and exit of firms. Select the correct option from below.
In the short run, if planned purchase exceeds production
Which one of the following is not a principal macro-economic goal?
When there is no change in central banks holding of international reserves, a country's:
Which one of following is not a measure of National Income of a country?
The interest rate and price level are jointly determined by simultaneous equilibrium of:
If consumption is \(C=40+0.75Y\), Investment is \(I=60\), the output, consumption and saving at the equilibrium will be respectively
The permanent income hypothesis was propounded by:
In a two sector model, let \(C=60+0.80Y\), \(I=116-2i\), \(L=0.20Y-5i\) and \(M=120\). The LM equation will be
The Phillips curve shows
Which institution formulates monetary policy?
The estimated regression equation is \(\hat{y}=60+5X\). What is the slope of this regression equation?
The coefficient of variation is a relative measure of variability. It measures the
Conditional Probability can be calculated by
If \(TC=\frac{Q^3}{3}+20\), what will be \(MC\)?
Given the matrices, \(A\) and \(B\) as \[ A=\begin{bmatrix}1&2\\-2&4\end{bmatrix},\quad B=\begin{bmatrix}3&-2\\5&0\end{bmatrix} \] What will be \(AB\)?
Derivative of Average cost \((AC)=5+\frac{2}{Q}\) is:
On recommendation of which committee the Competition Act, 2002 was implemented?
The occupational structure of India at Independence was dominated by:
The Heckscher-Ohlin theory states that the trade arises due to difference in
In the Colonial period agriculture credit system was dominated by
Market failure arise in case of Public good due to
Public debt becomes unsustainable when
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: Monopoly power is the ability to set price above marginal cost and that the amount by which price exceeds marginal cost depends inversely on the elasticity of demand. Reason R: Monopoly power is determined with the more number of firms in the market.
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: There are increasing return to scale, if output become more than doubles when inputs are doubled. Reason R: Large scale of operation allows managers and workers to specialised in their tasks.
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: The nominal interest rate can be misleading guide to cost of borrowing. Reason R: The real interest rate is nominal rate of interest plus the rate of inflation.
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: In the Keynesian model equilibrium output is determined where aggregate demand equals aggregate supply. Reason R: Effective demand is the level of demand that will occur, given firm's expectation of profit.
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: A random variable is a numerical description of the outcome of an experiment. Reason R: The particular numerical value of a random variable does not depend on the outcome of the experiment.
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: For a demand function \(P=60-Q^2\) and at price \(P=44\), point elasticity of demand is \(-1.375\). Reason R: Demand is inelastic.
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: According to Ricardo's theory a country can benefits from trade even if it has an absolute disadvantage in the production of all the goods. Reason R: What matters for trade is comparative advantage which depends on relative not absolute cost differences.
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: The primary cause of India's recurring balance of payment surplus with Britain during the colonial periods was ‘Home-charges'. Reason R: ‘Home-charges' included expenses such as pension to British officers, interest on India's Public debt held in Britain and salaries paid in England.
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: Labour relations in colonial industry were often exploitative. Reason R: Workers had low-wages, poor working conditions, and minimal labour rights.
Arrange the following in correct order to solve a linear system \(AX=T\) using matrix inversion. A. Verify that determinant of \(A\) is non-zero B. Compute the adjoint C. Compute \(A^{-1}\) D. Multiply \(A^{-1}T\) to get \(X\) E. Set up the co-efficient Matrix \(A\) and constant Matrix \(T\).
Chronologically arrange the following famines of colonial India: A. Chalisa Famine, B. Great Famine, C. Orisa Famine, D. Rajputana Famine, E. Bihar Famine.
Sequence the Pigouvian externality corrections: A. Identify the external cost, B. Measure marginal external damage, C. Compute marginal social cost, D. Tax equals to marginal external damage, E. Welfare improves after corrections.
Sequence the following theories/concept earliest to latest: A. Ordinal Utility, B. Cardinal Utility, C. Revealed Preference, D. Slutsky decomposition, E. Modern behavioural economics.
Arrange the following models in a chronological order oldest to latest: A. Cournot's Model, B. Bertrand Model, C. Edgeworth Model, D. Chamberlin Model, E. Sweezy Kinked Demand Curve.
Sequence the working of money multiplier in correct order: A. RBI injects High Powered Money, B. Banks keep required reserves, C. Banks receives deposits, D. Banks gives loans, E. Deposit expansion.
Sequence the evolution of money demand theories oldest to latest: A. Friedman's Restatement of quantity theory, B. Inventory theory of transactions demand, C. Cambridge Cash Balance approach, D. Liquidity Preference theory, E. Portfolio Balance Model.
The Transmission Mechanism process follow different stages: A. Change in real money supply, B. Spending adjusts to change in interest rate, C. Portfolio adjustment, D. Output adjusts to the change in aggregate demand, E. Change in asset price and interest rate.
Arrange the steps to compute the coefficient of variation \(CV\) in correct order: A. Compute standard deviation \(SD\), B. Divide \(SD\) by mean \(\bar{X}\), C. Compute Mean \(\bar{X}\), D. Multiply the ratio of \(SD\) and mean with 100 to express in percentage, E. Report CV.
Arrange the following as per their establishment oldest to latest: A. Textile mills in Bombay, B. Jute Industry in Bengal, C. Iron and Steel Industry in Jamshedpur, D. Coal Mining in Raniganj, E. Railway as Industrial Catalyst.
Sequence the evolution of taxation principles in modern Economics: A. Ability to pay principle, B. Benefit principle, C. Optimal taxation theory, D. Equity and efficiency consideration, E. Dead weight loss concept.
Arrange the following in chronological oldest to latest order: A. Introduction of Income tax in India, B. Constitutional Amendment to establish finance commission, C. GST in India, D. FRBM Act, E. 16th Finance Commission.
Consider the following statements: A. Consumer surplus equals area under demand curve above price line, B. Marshall's measure assume constant marginal utility of money, C. Hicksian compensatory variation is better welfare measure than Marshallian surplus, D. Consumer surplus is always zero for perfectly elastic demand, E. Price elasticity of demand is unitary when total revenue \(TR\) is maximum.
Consider the statements about monopolistic competition: A. Firms faces downward sloping demand curve, B. Excess capacity is a long run property, C. Firm is price taker, D. Product differentiations is essential in this market, E. Selling costs are significant.
Consider the following statements: A. Average Fixed Cost always decline with increase in output, B. Marginal Cost intersects AVC and ATC at their minimum point, C. Learning Curve implies cost rises with accumulated output, D. In the long run, all costs are variable, E. Longrun Average Cost is envelope of Shortrun Average Cost curves.
Money has following functions: A. Medium of Exchange, B. Unit of account, C. Store of value, D. Measure of Economic Uncertainty, E. Measure of Happiness.
Consider the following statements: A. IS curve shifts to right when government's expenditure rises, B. LM Curve shifts to left when money supply falls, C. Interactions of IS-LM curve determines equilibrium of interest rate and income, D. A rise in price level shift LM curve to left, E. Liquidity trap makes LM curve vertical.
Select correct answers in regard of Phillips curve: A. The short run Phillips curve is negative sloped, B. Long run Phillips curve is steeper in slope than short run curve, C. Over the time Phillips curve has tendency to be parallel to x-axis, D. The Phillips curve shows positive relationship between inflation and money, E. Inflation expectations plays a major role in wage negotiations.
Consider the following question for measures of dispersion: A. Range is sensitive to extreme, B. Coefficient of variation \(CV\) is unit free, C. Quartile deviation is \((Q_3-Q_4)/2\), D. Inter Quartile range \(IQR=Q_3-Q_1\), E. Variance is square root of standard deviation.
Choose the correct answer from the options given below: A. Slope shows in regression equation change in \(y\) per unit, B. Probabilities always remain positive, C. Sampling distribution = distribution of sample statistics, D. OLS minimizes the squared error, E. Convenience sampling is probability sampling.
Consider the following statement in context of Linear Programming Problem \(LPP\): A. It has an objective function, B. It allows negative values of decision variable always, C. Its Feasible region is usually a polygon, D. Its Constraint must be linear, E. Its Optimal solution lies at corner point.
Select the correct statements: A. Fiscal Deficit = Budget Deficit - Interest Payments, B. Revenue Deficit = Revenue Expenditure - Revenue Receipts, C. Budget Deficit = Total Expenditure - Total Receipts, D. Primary Deficit = Fiscal Deficit + Interest Payments, E. Current Deficit = Budget Deficit + Borrowings.
RBI controls the credit in economy by: A. Change in CRR, B. Change in SLR, C. Change in Bank Rate, D. Open market operations, E. Credit Rationing.
Select the correct pair of five year plans and its time range. A. First Plan - (1951-56), B. Fourth Plan - (1972-77), C. Ninth Plan - (1997-2002), D. Tenth Plan - (2002-2007), E. Eleventh Plan - (2007-2012).
Match List-I with List-II.
| List-I | List-II |
|---|---|
| A. Contract Curve | I. Shows all efficient allocation of goods |
| B. Utility Possibility Frontier | II. Shows all efficient allocations of resources measured in term of utility |
| C. Social Welfare Function | III. Measure the well being of society as whole in term of utilities of individual |
| D. Production Possibility Frontier | IV. Shows the combination of two goods that can be produced with given input |
Match List-I with List-II.
| List-I | List-II |
|---|---|
| A. Efficiency in exchange | I. Externalities |
| B. Efficiency in the use of inputs | II. \(MRS^A_{xy}=MRS^B_{xy}\) |
| C. Efficiency in the output market | III. \(MRTS^X_{LK}=MRTS^Y_{LK}\) |
| D. Market failure | IV. \(MRT_{xy}=MRS_{xy}\) |
Match List-I with List-II.
| List-I | List-II |
|---|---|
| A. Marginal rate of Substitutions | I. Slope of Budget Line |
| B. Budget Line | II. Ratio of Marginal Utility |
| C. Indifference Curve | III. Locus of equal utility |
| D. Price Ratio | IV. Constraints based on income |
Match List-I with List-II.
| List-I | List-II |
|---|---|
| A. Classical Model | I. Supply creates its own demand |
| B. Effective Demand | II. Level of aggregate demand where planned saving = planned investment |
| C. Say's law | III. Output determined by aggregate demand in short run |
| D. Keynesian Model | IV. Price and wage flexible full employment assumed |
Match List-I with List-II.
| List-I | List-II |
|---|---|
| A. Expectation Augmented Phillips curve | I. Long run vertical Phillips curve |
| B. Natural rate of unemployment | II. Excess aggregate demand |
| C. Demand pull inflation | III. Wage price spiral |
| D. Cost push inflation | IV. Friedman |
Match List-I with List-II.
| List-I | List-II |
|---|---|
| A. Harrod-Domar Model | I. \(g=\frac{s}{v}\) |
| B. Solow Model | II. \(MRK=\delta\) |
| C. Golden rule of capital stock | III. \(k\) constant, \(y\) constant |
| D. Steady state | IV. convergence |
Match List-I with List-II.
| List-I | List-II |
|---|---|
| A. \(\bar{X}\) | I. Population Standard Deviation |
| B. \(\mu\) | II. Sample mean |
| C. \(\sigma\) | III. Population mean |
| D. \(s\) | IV. Sample Standard Deviation |
Match the corresponding equations List-I with solutions List-II.
| List-I | List-II |
|---|---|
| A. \(5x^2=0\) | I. \(x=0,16\) |
| B. \(2x^2-32=0\) | II. \(x=\pm4\) |
| C. \(2x^2+32=0\) | III. \(x=0\) |
| D. \(2x^2-32x=0\) | IV. \(x=\pm4i\) |
Match the partial derivative of function \(Z=x^2+xy^2+y\).
| List-I | List-II |
|---|---|
| A. \(Z_x\) | I. \(2y\) |
| B. \(Z_y\) | II. \(2xy+1\) |
| C. \(Z_{xy}\) | III. \(2x+y^2\) |
| D. \(Z_{yx}\) | IV. \(2y\) |
In context of features of Indian Economy during British period, match List-I with List-II.
| List-I | List-II |
|---|---|
| A. National Income | I. Growing but with very high death rates |
| B. Per capita Income | II. Very low and barely rising |
| C. Population | III. Increasing dependency on agriculture |
| D. Occupational Structure | IV. Almost stagnant |
Match List-I with List-II.
| List-I | List-II |
|---|---|
| A. Public Good | I. Rival, non-excludable |
| B. Club Good | II. Non-rival, Non exclusion |
| C. Common Pool resources | III. Rival, Excludable |
| D. Private Good | IV. Non-rival, Excludable |
Match List-I with List-II.
| List-I | List-II |
|---|---|
| A. Liberalisation | I. Selling government share to private sector |
| B. Privatisation | II. Reducing entry barriers and control |
| C. Disinvestment | III. Transfer of ownership to private hands |
| D. Globalisation | IV. Opening up to foreign investment |
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