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.

Money Multiplier = 1/LRR is the relation between LRR and money multiplier. LRR is the legal reserve ratio. You can read about the Money Supply in...
Interest rates are affected by the money supply. Money supply is determined by the multiplier. Hence money multiplier is important in...
Tourism multiplier effect indicates how many times the money spent by a tourist circulates in the country’s economy. You can read about the...
Money multiplier would decrease when the money lent by the banks is less. You can read about the Money Supply in Economy - Types of Money,...
Increasing number of borrowers were unable to repay their loans and the prices of houses in the US started to fall. These factors played a big...
The economic stimulus packages helped in ending the financial crisis.You can read about the Balance of Payment Crisis, 1991 - Causes and Measures...
Subprime mortgage crisis, loose lending standards in the housing market, lack of strong watchdogs.You can read about the Balance of Payment...
In urban areas it is 1,286 Indian rupees, and in rural areas it is 1059.42 Indian Rupees per month.You can read about the Main Causes of Poverty...
Robert Owen (1771–1858) is the father of the modern cooperative movement. He is from Wales. He was a social reformer, textile manufacturer,...
The non-financial sector consists of market producers and independent legal companies, whose main activities are non-financial services and...
No, the Central cooperative bank and nationalised banks are different. They are not the same.You can read about the List of Co-operative Banks in...
Yes, credit card debt is a non-financial debt.You can read about the Loan Guarantee Scheme For COVID Affected Sectors - LGSCAS in the given link....
There are 1,539 urban cooperative banks (UCBs) in India by the end of March 2020. These cooperative banks are located in urban and semi-urban...
With the objective of creating a more service and market oriented economy, Indian Government formulated economic policies for liberalization of...
India was forced to open its economy in 1991 due to the balance of payment crisis.You can read about the Economic Reforms Of 1991 - Objectives,...
The Indian economy witnessed growth, there was an increase in investments, production, and inflation rates came down.You can read about the...
Wholesale Price Index (WPI) is the index which tracks and measures changes in the prices when goods are traded between entities or businesses in...
(Current Price / Base Period Price) × 100 is the formula used to calculate the Wholesale Price Index (WPI).You can read about the WPI -...
Wholesale Price Index (WPI) does not show the situation of consumer price in the country.You can read about the WPI - Wholesale Price Index [UPSC...
WPI is calculated by the Office of Economic Advisor (OEA), Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.You...