Top 25 UPSC Prelims Expected Questions from Economics Syllabus

The number of questions from Economics in the UPSC Prelims in recent years has been on the rise, around 10-16 questions come from economics. Therefore, studying Economics during IAS Exam preparation has become very important for aspiring Civil Servants. The question asked in the Prelims from this section is basically to ensure that aspirants have a basic understanding of key static economic concepts, as well as familiarity with the latest developments in the Indian and Global Economy.

Economics questions are either current affairs or static in nature.  The subject’s preparation is quite easier than the other subjects, as the questions mostly deal with basic facts from the static portion or popular current affairs development. Hence, it is always recommended to have just the basic conceptual clarity of static economics and focus more on current affairs.

To help the aspirants score higher in the subject, we are providing top 25 topics in Economics that were in the news for the past couple of years. As per the UPSC 2023 calendar, the IAS Prelims and main exams are scheduled to take place on May 28, 2023 and September 15, 2023 respectively.

Related links:

How to Revise Important Topics of Economics for UPSC Prelims 2023?

Economics is a subject from where every year around 10 to 16 questions come in the UPSC Preliminary exam, hence it is a scoring subject. Revising the subject is considerably easier than others and thus consumes less time as the revision material is not much bulky. In most of the cases, Static economy questions come from Macroeconomics alone and not a single from Microeconomics. Below are some tips and tricks by UPSC experts at BYJU’S to revise the subject in the most effective way:

• If you are left with less time for revision, skip revising Microeconomics completely and accommodate the time between Macroeconomics and important current affairs.
• Don’t mug up the statistics or figures of various schemes or reports. Always remember that UPSC doesn’t rank or absolute numbers.
• Bear in mind that not all facts are important. Focus your revision more on the unique and new developments in the existing system/schemes. Also give adequate time to new developments which have the potential for large-scale influence on the Indian Economy in general.
• Economics is the one subject where more questions are from current affairs and less from the static topics, hence aspirants are advised to revise from the current affairs magazines or hand notes prepared by themselves.
• As stated earlier too, when it comes to static economy, only fundamental concept based questions are asked, hence it is not wise to dig too deeper here, refer to basic NCERT books for Class 11th and Class 12th or NCERT Notes for studies and revision.
• Aspirants are advised not to study or revise world economy for UPSC Prelims and study only those world economy current affairs which concern or affect India.

Relevant Video:

In addition to the below-mentioned topics and questions, aspirants can also refer to the below video for more in depth revision and exposure to many more probable questions that could be asked.

Best 25 Economy Topics/Questions Expected in UPSC Prelims 2023

UPSC Experts at BYJU’S have shortlisted the top 25 most important economics topics for the UPSC Civil Services Prelims Exam. The questions below are framed from the most important static topics as well as important economy based current affairs which have been in the news for the past couple of years. Aspirants can study the associated topics from the below questions and conduct their own short research for important facts, or visit the linked articles to read more.

While these are the most probable topics that UPSC can ask, candidates should keep in mind that the exam is quite unpredictable in nature, and so there are chances that some questions provided below might not come in the actual exam.

Aspirants should assess their risk to benefit ratio based on their level of preparation prior to digging deeper in the below topics.

List of 25 Expected Economics Questions in IAS Prelims 2023:

1. Which of the following does not fall under the ambit of GST?
   GST as a topic for UPSC is an evergreen one for the fact of it being in the news constantly and for important reasons. Questions related to GST might be asked in terms of goods that fall under its ambit or about the GST council, or even about the tax collection by the government.
2. What do you mean by the term “banking Company”?
   In the past one year a lot of developments have come forward in India with regard to the banking and financial sector, the recent ruling of the supreme court stating that States can’t regulate NBFCs and only RBI can is the latest example. In this backdrop, it is important to have the fundamentals clear and know the definition of “Banking Company”.
3. Which of the following statements are true about the Eurasian Group, which was in the news recently?
   Money laundering and terror financing is a menace which always stays in the news, due to these questions of FATF or Eurasian Group can be asked in the exam.
4. What is Capital Adequacy Ratio, and who decides its magnitude?
   Capital Adequacy Ratio and other rates are decided by the RBI from time to time. It is a static topic and fundamental to the Indian Economy, hence it is highly likely that questions on such topics could be asked.
5. Which of the following measures adopted by RBI are counter-inflationary in nature?
   Recent rate hikes by the RBI in India and central banks of various other countries to combat the high inflation have made rounds across the media. It becomes important to understand what inflation is and its remedies.
6. What is I.B.R.D?
   IBRD always stays in the headlines, and the most recent example is by helping Sri Lanka tackle its economic crisis. Therefore, it is important to know the names of various global financial institutions and their functions.
7. Which of the following comes under “Microeconomics”?
   UPSC often frames questions from basics, therefore it is highly likely that in the subject of economics, basic questions like the difference between Microeconomics and Macroeconomics could be asked.
8. What does a good having positive externalities is known as?
   In economics, goods are categorized based on a few parameters, each category of goods has certain features associated with it, “Positive Externalities” is one such parameter. This topic is one of the fundamentals of economics and thus having a clear understanding of it is very important as it can be touched by UPSC.
9. What are the functions of Deposit Insurance and Credit Guarantee Corporation?
   The latest report for Deposit Insurance and Credit Guarantee Corporation has been out stating total claims it has settled in the previous fiscal year. India’s banking ecosystem is a very troubled one, with issues such as high NPAs and corruption, leading to strict actions by RBI. The corporation comes to the rescue of the depositors in such troubled banks, and thus it is important to know its functions and scope.
10. What is PM-SVANidhi?
    PM-SVANidhi is a program launched by the Union Government of India for supporting small and marginal shopkeepers and vendors against the menace of COVID-19 pandemic. Its second phase has just been launched and so there is a possibility of being asked in the UPSC prelims.
11. What is the technology platform “CHAMPIONS” related to?
    The CHAMPIONS platform was recently launched by the Ministry of Micro, Small and Medium Enterprises (MSME) to aid India’s MSME sector in more than one way. The MSME sector is the largest employment generating sector in India and also the future of our economy’s growth engine, hence any positive development related to it becomes a probable topic for a question in IAS prelims.
12. What are the salient features of Mudra Shishu Loan?
    Recent media reports stating the rise in Mudra NPAs have made headlines, putting the whole PM-Mudra Yojana in the spotlight, hence it is important to know all the critical details of the scheme.
13. Which are the recent amendments to the definition of MSME?
    As stated earlier, MSME is a very important topic in Economics and any critical development in this sector poses a high chance of being asked in the UPSC exam.
14. What is long term Foreign Currency and Local Currency Issuer Ratings?
    Due to the huge role played by Sovereign Ratings and Foreign Currency and Local Currency Issuer Ratings with respect to driving the trends of foreign investment in India, any changes by credit rating agencies in this behalf becomes an important topic.
15. Who releases the Global Economic Prospects report?
    Reports by top Global financial organisations are always important for the UPSC prelims; questions can be asked about the static facts of such reports and not the statistics present in them. Global Economic Prospects and Global Economic Outlook are two different reports published by two different organizations, hence it is important to have conceptual clarity here.
16. What is the Empowered Group of Secretaries?
    The Central Government of India has recently created an Empowered Group of Secretaries to implement one of its flagship programs. Therefore, it is important to understand what the term actually means.
17. What are General Financial Rules?
    The central government has recently issued additional rules under the General Financial Rules, thus questions based on the term and its scope can be framed in the CSE Prelims exam.
18. What are the recent amendments to the Essential Commodities Act?
    Due to the Russia-Ukraine war, the supply chain of key agro-products has been disrupted, causing shortage and high prices. The government is using the Essential Commodities Act to control the issue. As it is in the news, so having a clear understanding of the latest developments regarding it is important.
19. What is the difference between Revenue Deficit, Effective Revenue Deficit and Primary Deficit?
    Types of budget deficit are one of the most important topics for UPSC, both under static economics and dynamic economics. Not much time has passed since the previous Union Budget and Economic Survey, so having the conceptual clarity of such key terms is always helpful.
20. Which of the following measures of RBI fall under Open Market Operations?
    RBI from time to time conducts Open Market Operations to keep inflation in check. This is fundamental to the Indian Economy and hence important for the exam.
21. What are the salient features of the Insolvency and Bankruptcy Code?
    NCLT has recently initiated insolvency proceedings against a company, hence it is important to have a basic understanding of the Insolvency and Bankruptcy Code as it can be asked in the UPSC Prelims.
22. What is the “Healthy and Energy Efficient Buildings” initiative?
    Launched on World Environment Day i.e. 5th June, the initiative is pivotal in dealing with India’s emerging environmental challenges and to ensure sustainable development. Having just the basic knowledge about the Healthy and Energy Efficient Buildings initiative would suffice for the IAS Prelims exam.
23. What are the component indicators used to compute the Global Hunger Index report?
    With India’s rank falling in the latest report and creating buzz throughout India and the world, it is important to know the key facts about the Global Hunger Index Report.
24. What is the Market Intervention Scheme?
    Minimum Support Price has been constantly been in the news for the past couple of years, in this backdrop it is important to know about the similar scheme called Market Intervention Scheme (MIS) which deals with the perishable agricultural products that are not under the ambit of MSP.
25. What is the Financial Stability and Development Council?
    The Financial Stability and Development Council was in the news recently due to its 25th meeting held in Mumbai and chaired by the Finance Minister of India discussing various challenges to the financial system of India. It thus becomes important to know basic details about it.

Motivation for UPSC Prelims 2023 – Revision Tips

• Don’t pick new topics or materials for study or revision just before the exam. Stick with the standard study materials and your hand notes.
• Use mnemonics wherever you find feasible to remember hard to remember facts.
• Stay confident with your revision and don’t get confused when you see the options in the question paper.
• As a general rule, don’t change your mind after you mark an option unless you have strong feelings about the other option.
• Maintain your calm and confidence while you attempt the exam, any fall or increase in your confidence can wreak havoc.

To get an idea about the expected questions from the other subjects asked in the IAS Prelims examination, check the links below:

Economics Expected Questions in UPSC CSE 2023 PDF –Download PDF Here