Download CMAT 2022 Economics Questions PDF by Cracku. Very Important Economics Questions for CMAT 2022 based on asked questions in previous exam papers. These questions will help your CMAT preparation. So kindly download the PDF for reference and do more practice.<\/p>\n
Download Economics Questions for CMAT<\/a><\/p>\n Enroll to CMAT crash course<\/a><\/p>\n Take CMAT mock tests here<\/a><\/p>\n Download CMAT previous papers PDF<\/a><\/p>\n Question 1:\u00a0<\/b>As per Economic survey 2017-18, the percentage contribution of the Services Sector to a)\u00a0Between 40-50%<\/p>\n b)\u00a0Greater than 50%<\/p>\n c)\u00a0Less than 30%<\/p>\n d)\u00a0Between 30-40%<\/p>\n Question 2:\u00a0<\/b>How much loan amount was sanctioned by The World Bank to help India develop its first modern waterway?<\/p>\n a)\u00a0$575 million<\/p>\n b)\u00a0$275 million<\/p>\n c)\u00a0$375 million<\/p>\n d)\u00a0$475 million<\/p>\n Question 3:\u00a0<\/b>What is Showrooming?<\/p>\n a)\u00a0An individual browses the sites of e-retailers for products and then ends up purchasing the product from some brick and mortar store.<\/p>\n b)\u00a0An individual visiting a brick and mortar store to have a look and feel of the product and then ordering the same product through some e-retailers.<\/p>\n c)\u00a0An individual visiting a big box retailer to have a look and feel of the product and then purchasing the same product from nearby kirana (Mom and Pop) store.<\/p>\n d)\u00a0An e-retailer using the kirana (Mom and Pop) stores to keep its stock of goods and meets the orders in the nearby localities.<\/p>\n e)\u00a0None of the above<\/p>\n Question 4:\u00a0<\/b>Indian Government is planning to introduce GAAR. What is the purpose of GAAR?<\/p>\n a)\u00a0Increase rural Income<\/p>\n b)\u00a0Increase agriculture income<\/p>\n c)\u00a0Regulatory authority for managingagriculture resources<\/p>\n d)\u00a0Regulate foreign investment in agriculture<\/p>\n e)\u00a0Curtail tax avoidance<\/p>\n Question 5:\u00a0<\/b>Which of the following was not the reason for the recent slide of Indian Rupee?<\/p>\n a)\u00a0Huge trade Deficit<\/p>\n b)\u00a0Low Growth and High Inflation<\/p>\n c)\u00a0Low Capital Inflow<\/p>\n d)\u00a0Burgeoning current account deficit<\/p>\n e)\u00a0High employment rate<\/p>\n Get 5 CMAT mocks at just Rs.299<\/a><\/p>\n Download CMAT Previous Papers PDF<\/a><\/p>\n Question 6:\u00a0<\/b>Which of the following are millennium development goals?<\/p>\n a)\u00a0Poverty eradication, reducing child mortality, reducing trade barriers, combating AIDS<\/p>\n b)\u00a0Poverty Reduction, environment sustainability, universal primary education, equal employment<\/p>\n c)\u00a0Reduce unemployment, promote diversity,combating malaria, improving maternal health<\/p>\n d)\u00a0Globalization, reduction in poverty, combating AIDS, universal primary education<\/p>\n e)\u00a0Poverty eradication, improving maternal health, universal primary education, combating AIDS<\/p>\n Question 7:\u00a0<\/b>CPI and WPI as acronyms refer to<\/p>\n a)\u00a0Political Parties<\/p>\n b)\u00a0Purchasing capacity indices<\/p>\n c)\u00a0Price Indices<\/p>\n d)\u00a0Poverty indices<\/p>\n e)\u00a0Unemployment indices<\/p>\n Question 8:\u00a0<\/b>The cost price of an article is x. It is marked up by 120%. It is sold at Rs 8800 after giving 20% discount. What is the value (in Rs) of x?<\/p>\n a)\u00a07680<\/p>\n b)\u00a06000<\/p>\n c)\u00a06680<\/p>\n d)\u00a05000<\/p>\n Question 9:\u00a0<\/b>The demand for an inferior good decreases with ________ in the consumer’s income.<\/p>\n a)\u00a0increase<\/p>\n b)\u00a0decrease<\/p>\n c)\u00a0constant<\/p>\n d)\u00a0double<\/p>\n Question 10:\u00a0<\/b>If price of an article decreases from Rs 800 to Rs 700, quantity demanded increases from Q1 units to 70 units. If point elasticity of demand is -1.333 find Q1?<\/p>\n a)\u00a080 units<\/p>\n b)\u00a090 units<\/p>\n c)\u00a060 units<\/p>\n d)\u00a050 units<\/p>\n Question 11:\u00a0<\/b>Which of the following will cause an increase in demand for a good?<\/p>\n a)\u00a0an increase in income if the good is an inferior goods<\/p>\n b)\u00a0a decrease in the price of the goods<\/p>\n c)\u00a0a decrease in income if the good is a normal goods<\/p>\n d)\u00a0an increase in the price of its substitute goods<\/p>\n Question 12:\u00a0<\/b>If India exports more than it imports, which of the following is likely to happen?<\/p>\n a)\u00a0INR is likely to appreciate against other currencies<\/p>\n b)\u00a0The supply of INR is likely to exceed the demand in the foreign exchange market, ceteris paribus<\/p>\n c)\u00a0INR would be under pressure to depreciate against other currencies<\/p>\n d)\u00a0Both B and C are correct<\/p>\n Question 13:\u00a0<\/b>Negative inflation is also called:<\/p>\n a)\u00a0Disinflation<\/p>\n b)\u00a0Deflation<\/p>\n c)\u00a0Both<\/p>\n d)\u00a0None of the above<\/p>\n Question 14:\u00a0<\/b>India recently started \u201cMaitree Express\u201d to which of the following destinations ?<\/p>\n a)\u00a0Islamabad<\/p>\n b)\u00a0Karachi<\/p>\n c)\u00a0Dhaka<\/p>\n d)\u00a0Kathmandu<\/p>\n e)\u00a0None of these<\/p>\n Question 15:\u00a0<\/b>Many times we hear about SEZ in newspapers \/magazines. What is the full form of SEZ ?<\/p>\n a)\u00a0Small Economic Zone<\/p>\n b)\u00a0Social Economic Zone<\/p>\n c)\u00a0Special Enforcement Zone<\/p>\n d)\u00a0Service & Economic Zone<\/p>\n e)\u00a0Special Economic Zone<\/p>\n Take CMAT Mock Tests<\/a><\/p>\n Answers & Solutions:<\/strong><\/span><\/p>\n 1)\u00a0Answer\u00a0(B)<\/strong><\/p>\n The services sector contributed<\/strong> 55.2% to India’s<\/strong> GVA in 2017-18<\/strong><\/p>\n 2)\u00a0Answer\u00a0(C)<\/strong><\/p>\n The Government of India and the World Bank today signed a $375 million loan agreement to support India develop its first modern inland water transport fairway on the Ganga river between Varanasi and the seaport of Haldia.<\/p>\n Option C is correct.<\/p>\n 3)\u00a0Answer\u00a0(B)<\/strong><\/p>\n Showrooming is the process in which an individual visits a showroom to know how a product looks and feels before buying it online at a discount. Therefore, option\u00a0B is the right answer.<\/p>\n 4)\u00a0Answer\u00a0(E)<\/strong><\/p>\n GAAR stands for General anti-avoidance rule. The rule was established under chapter X-A of Income tax act, 1961. The rule was enacted to curtail tax avoidance. Therefore, option E is the right answer.<\/p>\n 5)\u00a0Answer\u00a0(E)<\/strong><\/p>\n The 2012 slide in Indian rupee was caused due to a huge trade deficit, low growth and high inflation, low capital inflows and increasing current account deficit. High employment rate was not one of the reasons for the slide of rupee in 2012. Therefore, option E is the right answer.<\/p>\n 6)\u00a0Answer\u00a0(E)<\/strong><\/p>\n The UN set 8 development goals in 2000 to be accomplished by 2015. These goals are known as the millennium goals.<\/p>\n The goals are as follows: Only option E captures these points. Therefore, option\u00a0E is the right answer. 7)\u00a0Answer\u00a0(C)<\/strong><\/p>\n CPI is the abbreviation of Consumer Price index. CPI and WPI are price indices used to keep track of inflation. Therefore, option C is the right answer.<\/p>\n 8)\u00a0Answer\u00a0(D)<\/strong><\/p>\n $\\frac{100-20}{100} \\times \\frac{100+120}{100} \\times (x) = 8800$<\/p>\n $\\frac{80}{100} \\times \\frac{220}{100} \\times (x) = 8800$<\/p>\n $ x = 8800\/(1.76) = 5000$<\/p>\n So the answer is option D.<\/p>\n 9)\u00a0Answer\u00a0(A)<\/strong><\/p>\n Increase is the correct word because when people’s income increases, they start looking for superior goods and hence demand for inferior goods decreases.<\/p>\n 10)\u00a0Answer\u00a0(C)<\/strong><\/p>\n Point price elasticity of demand = (Change in quantity \/ Change in price)<\/p>\n -1.33 = $\\frac{(70 – Q1) \/ Q1}{(-100 \/ 800)}$<\/p>\n 560 – 8Q1= 1.33Q1<\/p>\n 560 = 9.33Q1<\/p>\n Q1 = 60.02<\/p>\n Hence, option C is the correct answer.<\/p>\n 11)\u00a0Answer\u00a0(D)<\/strong><\/p>\n Increasing the price of its substitute goods will increase the demand for a good. While, a decrease\u00a0in the price of the goods cause an increase in quantity demanded, not an increase in demand.<\/p>\n => Ans – (D)<\/p>\n 12)\u00a0Answer\u00a0(A)<\/strong><\/p>\n If India starts exporting more than it imports, the current account would be in surplus (foreign currencies flowing into the current account, which constitutes all the trades in goods and services, would be more than foreign currencies flowing out). 13)\u00a0Answer\u00a0(B)<\/strong><\/p>\n Negative inflation is also called deflation. 14)\u00a0Answer\u00a0(C)<\/strong><\/p>\n COMPUTER KNOWLEDGE \/ MARKETING APTITUDE<\/p>\n 15)\u00a0Answer\u00a0(E)<\/strong><\/p>\n COMPUTER KNOWLEDGE \/ MAKETING APTITUDE<\/p>\n
\nIndia\u2019s GDP will be in the range of:<\/p>\n
\n1. Eradicate extreme poverty and hunger.
\n2. Achieve universal primary education.
\n3. Promote gender equality
\n4. Reduce child mortality
\n5. Improve maternal health
\n6. Combat HIV and Malaria
\n7. Ensure environmental sustainability
\n8. Develop global partnerships for development<\/p>\n
\nMillennium development goals were replaced by sustainable development goals in 2015.<\/p>\n
\nWPI is the abbreviation of Wholesale price index.<\/p>\n
\nThis may or may not lead to a strengthening of Rupee Vs foreign currencies, depending on how the capital account is behaving, that is, if the foreign currencies in terms of investments, portfolio and direct, are flowing in or out.
\nHowever, as a rule of thumb, if the current account is in huge surplus (like say China), our currency should appreciate. Dollars would be cheaper. Also, a positive current account would build in the sentiments of capital and forex markets and more forex would pour in. This might have a domino effect.
\nIn the end, the currency would strengthen (theoretically) to an extent where our exports would be too costly and imports would be cheap, and the balance is restored.<\/p>\n
\nHence, option B is the correct answer.<\/p>\n