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 speed of price adjustment is indicated by the Phillips curve. From a Keynesian viewpoint, the Phillips curve should slope down so that higher...
Rising prices, high unemployment, slow economic growth are the causes of stagflation. Due to oil embargoes, and as a result of fiscal and...
The Phillips curve remains the primary framework for understanding and forecasting inflation used in central banks. Many economists believe that...
The Phillips curve is used by Central banks to forecast the inflation when the rate of unemployment falls. The Phillips curve was a concept used...
Kuznets curve theory hypothesizes that industrializing nations experience a rise and subsequent decline in income inequality. As per Kuznets...
As per Kuznets inverted U hypothesis, initially the income inequality will worsen as the economy grows, and the income inequality will reduce at...
Kuznet ratio is a measurement of the ratio of income going to the highest-earning households (usually defined by the upper 20%) to income going...
The Kuznets curve is inverted because, initially, as the income per capita increases the income inequality keeps rising. After a certain point of...
Yankee bonds are denominated in U.S. dollars. The Yankee Bonds are issued and traded in the United States. It is a debt obligation issued by a...
Euro bond means it is a bond which is issued outside of the borders of the currency's home. Euro bond is denominated in a currency other than the...
Elephant bond is a rupee denominated bond. The funds raised from the issue of this bond will be exclusively used for infrastructure projects in...
A Chinese renminbi-denominated bond sold in China but issued by a non-Chinese is known as Panda bond. The first two Panda bonds were issued by...
Kerala Infrastructure Investment Fund Board (KIIFB) wanted to raise Rs 2,150 crore to fund several infrastructure projects in Kerala. The masala...
To support domestic capital markets of India, the International Finance Corporation (IFC) Maharaja bonds are issued. Maharaja bonds are...
Entering into Free Trade Agreements (FTA) will help countries to access and expand into new markets, increase investments, and increase the GDP...
Some of the examples of trade agreements signed by India with various countries are India-Korea Comprehensive Economic Partnership Agreement...
The Regional Comprehensive Economic Partnership (RCEP) trade agreement involving Japan, Australia, China, South Korea, New Zealand, and members...
The US has 14 Free Trade Agreements (FTA’s) with 20 different countries. The US has signed an FTA with Canada and Mexico as part of the...
Australia has 15 Free Trade Agreements with 26 countries. Some of the Free Trade Agreements of Australia are Japan-Australia (JAEPA),...
Trade agreements are important because they help in economic growth, increase the GDP of the nation, help in production of high quality goods,...