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.

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...
Some of the well-known 3 types of financial markets are derivatives market, bond market, and commodities market. A commodity market is a market...
An example of a financial market is the bond market. A financial market where participants can sell and buy debt securities, known as the...
There are several roles played by the financial markets. Financial markets help the government in raising funds by letting them borrow at a lower...
The two main types of financial markets are Capital Markets and Money Market. The capital market is the market for medium and long term funds....
The 5 roles of financial markets are ensuring a low cost of transactions and information, ensuring liquidity by providing a mechanism for an...
Some of the characteristics of financial markets are providing security dealings in financial assets and ensuring liquidity by giving mechanisms...
Yes, banks are part of financial markets. Financial institutions like banks, Development financial institutions like NABARD; non-banking...
When price inflation slows down temporarily, it is known as disinflation. The drop in prices for goods and services is known as deflation. You...
Yes, the Kuznets ratio is Lorenz consistent as it satisfies four properties. You can read about the Kuznets Curve - Explanation of the Kuznets...