ECONOMY UPSC Previous Year Questions
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ECONOMY UPSC Previous Year Questions www.laex.in Page No. 1 https://elearn.laex.in www.laex.in ECONOMY UPSC Previous Year Questions www.laex.in https://elearn.laex.in www.laex.in ECONOMY UPSC Previous Year Questions INDEX No. of Page No. S.No. Topic Qns From To 1 National Income and Concepts of Economy 24 1 10 2 Planning 12 11 16 3 Poverty 06 16 20 4 Employment 13 20 26 5 Monetary policy 75 28 61 6 Fiscal Policy 34 61 80 7 Stock Market 15 80 86 8 Agriculture 26 86 101 9 Industry 20 101 111 10 Infrastructure 13 111 117 11 External Sector 48 117 135 12 International Economy 49 135 155 13 Indicies and Reports 04 156 158 14 Miscellaneous 10 158 163 www.laex.in https://elearn.laex.in www.laex.in ECONOMY UPSC Previous Year Questions 1. National Income and 1.2 Economy Basics 5. A "closed economy" is an economy in Concepts of Economy which 1.1 Basic Concepts a) The money supply is fully controlled 1. A decrease in tax to GDP ratio of a b) Deficit financing takes place country indicates which of the c) Only exports take place following? d) Neither exports nor imports take place 1) Slowing economic growth rate 6. Match List-I with List II and select the 2) Less equitable distribution of national correct answer using the codes given income below the lists: Select the correct answer using the code List-I List-II given below. A. Boom 1. Business activity at high a) 1 only level with increasing b) 2 only income, output and c) Both 1 and 2 employment at macro d) Neither 1 nor 2 B. Recession 2. Gradual fall of income 2. Economic growth is usually coupled with output and employment with a) Deflation business activity in low gear b) Inflation C. Depression 3. Unprecedented level of c) Stagflation under employment and d) Hyperinflation unemployment, drastic fall in 3. Economic growth in country X will income, output and necessarily have to occur if employment a) There is technical progress in the world D. Recovery 4. Steady rise in the general economy level of prices, income, output b) There is population growth in X and employment c) There is capital formation in X Codes: d) The volume of trade grows in the world A B C D economy a) 1 2 3 4 4. Despite being a high saving economy, capital formation may not result in b) 1 2 4 3 significant increase in output due to c) 2 1 4 3 a) Weak administrative machinery d) 2 1 3 4 b) Illiteracy 7. The supply-side economics lays greater c) High population density emphasis on the point of view of d) High capital-output ratio www.laex.in Page No. 1 https://elearn.laex.in www.laex.in ECONOMY UPSC Previous Year Questions a) Producer c) 4 1 2 3 b) Global economy d) 4 1 3 2 c) Consumer 10. Consider the following statements: d) Middle-man Human capital formation as a concept is 8. A consumer is said to be in equilibrium, better explained in terms of a process, if which enables a) He is able to fulfil his need with a given level 1) Individuals of a country to accumulate more of income capital. 2) Increasing the knowledge, skill levels and b) He is able to live in full comforts with a capacities of the people of the country. given level of income 3) Accumulation of tangible wealth. c) He can fulfil his needs without consumption 4) Accumulation of intangible wealth. of certain items Which of the statements given above is/are d) He is able to locate new sources of income correct? 9. The product life cycle from inception to a) 1 and 2 demise is shown in the graph. Match List b) 2 only I with List II and select the correct c) 2 and 4 answer using the codes given below: d) 1, 3 and 4 List I (Stage) 1) Product Development 11. In the context of Indian economy, consider the following pairs: 2) Maturity Term Most appropriate 3) Growth Description 4) Introduction 1) Melt down Fall in stock prices List II (Zone) 2) Recession Fall in growth rate 3) Slow down Fall in GDP Which of the pairs given above is/are correctly matched? a) 1 only b) 2 and 3 only c) 1 and 3 only d) 1, 2 and 3 Codes: 1.3 Current Trends in GDP Growth Rate A B C D 12. With reference to Indian economy, a) 1 4 2 3 consider the following statements: b) 1 4 3 2 www.laex.in Page No. 2 https://elearn.laex.in www.laex.in ECONOMY UPSC Previous Year Questions 1) The rate of growth of Real Gross Domestic 15. Which one among the following Product has steadily increased in the last countrieshas the lowest GDP per capita? decade. a) China 2) The Gross Domestic Product at market b) India prices (in rupees) has steadily increased in c) Indonesia the last decade. d) Sri Lanka Which of the statements given above is/are 1.4 Measuring National Income correct? 16. The national income of a country for a a) 1 only given period is equal to the b) 2 only a) Total value of goods and services produced c) Both 1 and 2 by the nationals d) Neither 1 nor 2 b) Sum of total consumption and investment 13. In the context of Indian economy, expenditure consider the following statements: c) Sum of personal income of all individuals 1) The growth rate of GDP has steadily d) Money value of final goods and services increased in the last five years. produced 2) The growth rate in per capita income has 17. The most appropriate measure of a steadily increased in 5 years. country's economic growth is its Which of the statements given above is/are a) Gross Domestic Product correct? b) Net Domestic Product a) 1 only c) Net National Product b) 2 only d) Per Capita Real Income c) Both 1 and 2 d) Neither 1 nor 2 18. The term National Income represents a) Gross national product at market prices 14. With reference to Indian economy, minus depreciation consider the following statements: b) Gross national product at market prices 1) The Gross Domestic Product (GDP) has minus depreciation plus net factor income increased by four times in the last 10 from abroad years c) Gross national product at market prices 2) The percentage share of Public Sector in minus depreciation and indirect taxes plus GDP has declined in the last 10 years subsidies Which of the statements given above is/ are d) Gross national product at market prices correct? minus net factor income from abroad a) 1 only b) 2 only 19. The growth rate of per capita income at current prices is higher than that of per c) Both 1 and 2 capita income at constant prices, d) Neither 1 nor 2 www.laex.in Page No. 3 https://elearn.laex.in www.laex.in ECONOMY UPSC Previous Year Questions because the latter takes into account the 1) Agriculture, Forestry and Fishing rate of 2) Manufacturing a) Growth of population 3) Trade, Hotels, Transport and b) Increase in price level Communication c) Growth of money supply 4) Financing, Insurance, Real Estate and d) Increase in the wage rate Business Services 20. In an open economy, the national Choose The decreasing order of the income (Y) of the economy is: (C, I, G, X, contribution of these sectors to the Gross M stand for Consumption, Investment, Domestic Product (GDP) at factor cost at Government Expenditure, total exports constant price and total imports respectively). a) 3, 1, 2, 4 a) Y = C+I + G + X b) 1, 3, 4, 2 b) Y = C+ I + G - X+ M c) 3, 4, 1, 2 c) Y = C + I+ G+ (X- M) d) 1, 3, 2, 4 d) Y = C + IG+ X- M 24. Since 1980, the share of the tertiary 21. Increase in absolute and per capita real sector in the total GDP of India has GNP do not connote a higher level of a) Shown an increasing trend economic development, if (2018) b) Shown a decreasing trend a) Industrial output fails to keep pace with c) Remained constant agricultural output. d) Been fluctuating b) Agricultural output fails to keep pace with industrial 1.Key and Explanations c) Poverty and unemployment increase. 1.1 Basic Concepts d) Imports grow faster than exports. 1. Answer: C 1.5 Sectorial Contribution to Explanation: The tax-to-GDP ratio is a ratio of a nation's tax revenue relative to its gross GDP Growth domestic product (GDP), or the market value of 22. Which one of the following is the correct goods and services a country produces. Taxes sequence in the decreasing order of and GDP are generally related. The higher the contribution of different sectors to the GDP, the more tax a nation collects. Gross Domestic Product of India? Conversely, countries with lower taxes produce a) Services- Industry - Agriculture a lower GDP. A low tax to GDP ratio b) Services - Agriculture - Industry indicates lower economic development and less c) Industry - Services - Agriculture equitable distribution of wealth. The tax-to-GDP d) Industry- Agriculture - Services ratio is an economic measurement that 23. With reference to the Indian economy compares the amount of taxes collected by a consider the following activities: government to the amount of income that www.laex.in Page No.