Download CMAT Economics questions with solutions PDF by Cracku. Practice CMAT solved Economics Questions paper tests, which are the practice question to have a firm grasp on the Economics topic in the CMAT exam. Top 20 very Important Economics Questions for CMAT based on the questions asked in previous exam papers. Click on the link below to download the Economics Questions for CMAT PDF with detailed solutions.<\/p>\n
Download Economics Questions for CAMT<\/a><\/p>\n Enroll to CMAT 2023 Crash Course<\/a><\/p>\n Question 1:\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 1)\u00a0Answer\u00a0(B)<\/strong><\/p>\n Solution:<\/b><\/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 Question 2:\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 2)\u00a0Answer\u00a0(E)<\/strong><\/p>\n Solution:<\/b><\/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 Question 3:\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 3)\u00a0Answer\u00a0(E)<\/strong><\/p>\n Solution:<\/b><\/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 Question 4:\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 4)\u00a0Answer\u00a0(E)<\/strong><\/p>\n Solution:<\/b><\/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. Question 5:\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 5)\u00a0Answer\u00a0(C)<\/strong><\/p>\n Solution:<\/b><\/p>\n CPI and WPI are price indices used to keep track of inflation.<\/p>\n CPI is the abbreviation of Consumer Price index. It calculates the average price paid by the consumer to the shopkeepers. Therefore, option C is the right answer.<\/p>\n Question 6:\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 6)\u00a0Answer\u00a0(D)<\/strong><\/p>\n Solution:<\/b><\/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 Question 7:\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 7)\u00a0Answer\u00a0(A)<\/strong><\/p>\n Solution:<\/b><\/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 Demand of inferior goods depends on the income of the consumer.<\/p>\n Lets understand with an example.<\/p>\n When money is constricted, travelling by bus becomes more acceptable, but when money is abundant, more rapid and luxury\u00a0transport is preferred.<\/p>\n Question 8:\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 8)\u00a0Answer\u00a0(C)<\/strong><\/p>\n Solution:<\/b><\/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 Question 9:\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 9)\u00a0Answer\u00a0(D)<\/strong><\/p>\n Solution:<\/b><\/p>\n Increasing the price of its substitute goods will increase the demand for a good.<\/p>\n Lets understand with an example,<\/p>\n If there is increase in the price of petrol and than the demand for the electric vehicle will automatically increase<\/p>\n => Hence, Option D is correct.<\/p>\n Question 10:\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 10)\u00a0Answer\u00a0(A)<\/strong><\/p>\n Solution:<\/b><\/p>\n The appreciation of currency of a country depends on the following factors :<\/p>\n When a country exports more than it imports, high funds flow into the country and directly impact economic growth, consumer spending and domestic demand and value of domestic currency will increase.<\/p>\n Hence, Option A is correct.<\/p>\n Question 11:\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 11)\u00a0Answer\u00a0(B)<\/strong><\/p>\n Solution:<\/b><\/p>\n Negative inflation is also called deflation.<\/p>\n Deflation is when consumer and asset prices decrease over time, and purchasing power increases. Essentially, you can buy more goods or services tomorrow with the same amount of money you have today.<\/p>\n Hence, option B is the correct answer.<\/p>\n Question 12:\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 12)\u00a0Answer\u00a0(C)<\/strong><\/p>\n Solution:<\/b><\/p>\n COMPUTER KNOWLEDGE \/ MARKETING APTITUDE<\/p>\n Question 13:\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 13)\u00a0Answer\u00a0(E)<\/strong><\/p>\n Solution:<\/b><\/p>\n SEZ stands for Special Economic Zone<\/p>\n SEZ refers to\u00a0an area in a country that is subject to different economic regulations than other regions within the same country.<\/p>\n Hence, Option E is correct.<\/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. It calculates the price paid by the manufactures and wholesalers in the market.<\/p>\n\n