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.

GDP Deflatoris the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that...
The GDP deflator is also known as implicit price deflator and is a measure of inflation. It is used to analyse the extent to which the increase...
The GDP deflator is calculated by dividing nominal GDP by real GDP and multiplying it by 100 Further Reading: What is GDP? Inflation in...
The three main types of inflation in the economy are as follows: Demand-Pull Inflation Cost-Push Inflation Built-in Inflation Further...
The Organisation for Economic Co-operation and Development (OECD) has defined the wholesale price index as a measure that reflects changes in the...
Wholesale Price of goods is a common factor in measuring inflation and is thus important. A wholesale price index (WPI) measures and tracks the...
Wholesale price is the amount that is charged by the manufacturer with profits at the very base level. Retail price, on the other hand, is what a...
As per the International Monetary Fund, PPI or the Producer Price Index measures the rate at which the prices of producer goods and services are...
One of the key drawbacks of the WPI is that it only considers the impact of goods that are supposed to represent the entire population of goods....
The Bureau of Labor Statistics (BLS) indicates that the consumer price index is a measure of the average change over time in the prices paid by...
The Thousand Pillars Temple, located at the base of Hanamkonda hill was built in the 12th century by the Kakatiya King Rudra Deva. The temple is...
When the price of goods and services increases, it is known as inflation. Deflation, on the other hand, results in a decrease in the prices of...
A consumer price index measures changes in the price level of a weighted average market basket of consumer goods and services purchased by...
Mahalanobis Plan was India’s second five-year plan (1956-61) proposed by Professor Prasanta Chandra Mahalanobis. This plan gave priority to...
Mahalanobis Plan was designed by Professor Prasanta Chandra Mahalanobis.  Further Reading: Economic Planning In India Highlights of...
The Gandhian Plan was introduced by S. N. Agarwal emphasizing the expansion of small unit pro­duction and agriculture for the economic...
The Gandhian Plan was put forth by Shriman Narayan Aggarwal in 1944. Further Reading: Economic Planning In India Economy Syllabus and...
Inflation is the rate at which the value of a currency is falling and, consequently, the general level of prices for goods and services is...
Inflation in India is measured based on two indicators WPI (Wholesale Price Index)  CPI (Consumer Price Index)  Further Reading:...
Inflation is an increase in the level of prices of goods and services. The two major indices based on which it is measured are as follows: WPI...