CUET UG Categorised PYQ Economics Unit 5
Economics
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QUESTION 1 OF 1
Match the following: (PYQ 2024)
| List-I | List-II |
|---|---|
| A. Equilibrium | I. Plans of all the consumers and firms in the market match |
| B. Excess supply | II. Demand decreases with an increase in income |
| C. Inferior good | III. Supply is greater than market demand |
| D. Price ceiling | IV. Imposition of upper limit by government |
Test Complete!
Answer Review
1 Match the following: (PYQ 2024)
| List-I | List-II |
|---|---|
| A. Equilibrium | I. Plans of all the consumers and firms in the market match |
| B. Excess supply | II. Demand decreases with an increase in income |
| C. Inferior good | III. Supply is greater than market demand |
| D. Price ceiling | IV. Imposition of upper limit by government |
Equilibrium means market plans match perfectly. Excess supply means supply is greater than demand in the market. Inferior good has a negative relationship with income. Price ceiling means a government-imposed upper price limit on a good.
(Detailed) → (A) Equilibrium occurs when the plans of all consumers and firms in the market match, meaning market demand equals market supply. Therefore, (A) matches with (I). → (B) Excess supply happens when the market price is above the equilibrium point, meaning supply is greater than market demand. Therefore, (B) matches with (III). → (C) Inferior goods are those whose demand decreases with an increase in income. Therefore, (C) matches with (II). → (D) Price ceiling is the imposition of an upper limit by the government on the price of an essential good to protect consumers. Therefore, (D) matches with (IV). → Hence, Option B is the correct answer.
- A) (A) - (I), (B) - (II), (C) - (III), (D) - (IV) → This is incorrect because excess supply and inferior good are interchanged.
- C) (A) - (I), (B) - (II), (C) - (IV), (D) - (III) → This is incorrect because excess supply, inferior good, and price ceiling are wrongly matched.
- D) (A) - (III), (B) - (IV), (C) - (I), (D) - (II) → This is incorrect because all the pairs are completely mismatched.
Used
- Option A → Incorrect because excess supply and inferior good are mismatched.
- Option B → Correct because all pairs match correctly based on microeconomic definitions.
- Option C → Incorrect because three pairs are wrong.
- Option D → Incorrect because the matching is completely wrong.
- Final Answer → Option B.