UPSC Economic Questions and Answers

UPSC Economic Questions and Answers

The civil services exam is one of the toughest examinations conducted in the country, and economy questions constitute a major of the two written phases of the examination. At BYJU’S we bring to you a compiled list of Economy questions along with answers that are suitable from the prelims and mains perspective.

These answers have been provided by UPSC experts for the candidate’s assistance, without any indirect or ambiguous information. Questions based on sustainable development, GDP, economic growth, taxation, etc. are included in the economy syllabus and the list of questions provided below will focus on the same.

The compiled list of questions given below comes with straightforward and crisp answers, with the IAS mains General Studies-III paper syllabus as the focal point. Aspirants can refer to these questions and answers and familiarize themselves with the depth of important economic topics as per the UPSC Syllabus.

Yes, there are instances when the economic superpower, the United States of America had to face deflation. The most recent example of deflation...
During a specific time period, money supply is the total volume of money that is in circulation in a national economy. It includes both currency...
Two prominent examples of deflation are the 2007-2008 recession and the Great Depression in the United States of America (USA). When deflation...
There are many consequences of recession. Some of them are cutting back on investments by the private sector. To stimulate economic growth, the...
A general decline in economic activity, a contraction in the business cycle is known as recession. This decline in economic activity is spread...
Recession is definitely bad for the economy of a country. Recession means massive decline in economic activity across the nation, spread over...
Soon after the pandemic, the entire global economy was facing the situation of recession. In 2022, India is expected to have a strong growth rate...
Disinflation means price levels slowing down temporarily and deflation means decrease in general price levels throughout an economy. It is not...
Reflation is an act of stimulating the economy by reducing taxes or by increasing the money supply. To curb the effects of deflation, a monetary...
Deflation is a bad thing for the economy of a nation. In the short term deflation is good for consumers as the prices of goods and services will...
Painless disinflation occurs when the Government policy aimed at reducing inflation is credible and if the expectation is rational. It happens...
As the supply of bitcoin increases over time, bitcoin can be considered inflationary using the traditional definition. As Bitcoin’s...
Japan had a disinflated economy in 1990. This is the best example of disinflation. When the increase in the “consumer price level”...
Adam Smith’s 3 laws of economics are Law of demand and Supply, Law of Self Interest and Law of Competition. As per these laws, to meet the...
Adam Smith was of the opinion that Government regulations were sort of an obstacle to the growth of the economy. Adam Smith believed that markets...
The 4 economic theories are supply side economics, new classical economics, monetarism and Keynesian economics. New-classical economists believe...
The 4 types of financial markets are currency markets, money markets, derivative markets, and capital markets. Capital markets are used to sell...
There are several types of financial markets. They are money markets, capital markets, listed vs. OTC markets, primary vs. secondary markets,...
Financial Market refers to the system consisting of financial institutions, financial instruments, regulatory bodies, and organisations. You can...
Financial markets facilitate the interaction between those who need capital with those who have capital to invest. Financial Market refers to the...