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.

The society will be better off when a unit of income is transferred from a richer individual to a poorer individual. This is the Dalton's...
Gresham's law will operate or hold good only if certain conditions are fulfilled, hence they are like limitations of Gresham's law. The 3...
If there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity...
A general tendency for programmed activities to overshadow non-programmed activities is known as Gresham’s Law of Planning. However,...
Henry Dunning Macleod named the law Gresham's law in 1860. He named it after Sir Thomas Gresham. He was an English financier during the Tudor...
Keynesian economics is considered a "demand-side" theory that focuses on changes in the economy. During the 1930s in an attempt to understand the...
In an economic downturn, unemployment can result as the prices and wages can be sticky. The primary cause of a short-run economic event like a...
Keynes argued that inadequate overall demand could lead to prolonged periods of high unemployment. Business and economic growth will be promoted...
The 3 major theories of economics are Keynesian economics, Neoclassical economics, and Marxian economics. Some of the other theories of economics...
The Simple Keynesian Model emphasizes that a decrease in aggregate demand can lead to a stable equilibrium with substantial unemployment. It is...
In the 1970s, there was a period of slow economic growth accompanied by higher inflation. Until the 1970s, many economists believed that there...
Monetarist economics can be considered as the opposite of Keynesian economics. It is a direct criticism of Keynesian economics theory by Milton...
In the 1970s, there was a period of stagflation i.e. higher inflation and higher unemployment which led to heavy criticism of Keynesian...
As per Keynes, depressions and recessions are caused by a fall in aggregate demand. When the demand for products falls, the production falls,...
When there is a major shift in the way a market functions or industry functions, it is known as structural change. As per Kuznets view, during...
An example of a eurobond is a bond issued by a Russian corporation in the European market that pays interest and principal in the US Dollars. You...
A type of convertible bond issued in a currency different from the issuer's domestic currency is known as a foreign currency convertible bond...
The inverse relationship between unemployment rate and inflation when graphically charted is called the Phillips curve. It is a single-equation...
The Phillips curve remains the primary framework for understanding and forecasting inflation used in central banks. Many economists believe that...
Long-run Phillips curve shifts will occur when there is a change in the natural rate of unemployment. At the natural rate of unemployment, the...