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.

As per information given by the World Trade Organisation (WTO) there are 420 regional trade agreements in force across the globe. Transatlantic...
Some of the top free trade agreements Canada is involved in are Canada–Chile Free Trade Agreement, North American Free Trade Agreement...
The different types of trade agreements are the Comprehensive Economic Cooperation Agreement (CECA), Comprehensive Economic Partnership Agreement...
The main feature of the balance of payment is, in a specific period of time, it gives a systematic record of all economic transactions of one...
Masala Bonds are debt instruments. An example of a Masala bond is the first Masala bond issued by International Finance Corporation (IFC) to fund...
The problem of balance of payment arises when there is rise in the balance of payment deficit. This problem can be managed when exports start...
It is known as Masala bond because the word ‘Masala’ means spices. As the word evokes the cuisine and culture of India, the...
An agreement or treaty between two or more countries to remove trade barriers and facilitate trade between them is known as Free Trade Agreement....
Eurobonds have been in existence since 1963. Masala bonds are an offshoot of Eurobonds with changes in the choice of currencies and some...
A good example of a Free Trade Agreement is the North American Free Trade Agreement (NAFTA). NAFTA was signed among 3 countries - the United...
Masala Bonds are traded in India International Exchange (INX), London Stock Exchange (LSE), Luxembourg Stock Exchange. Historically, 43 Masala...
The purpose of the Free Trade Agreement is to reduce trade barriers among signatory nations. The Free Trade Agreement will have reduced or no...
Some of the 5 Free Trade Agreements are NAFTA (North American Free Trade Agreement), SAFTA (South Asia Free Trade Agreement), Indo-Sri Lanka Free...
Trade agreements between nations will consist of measures to boost trade between the signatory nations. It will contain measures to remove trade...
The main idea of Mercantilism is that a nation's wealth  and power were best served by increasing exports and so involved increasing trade....
An example of mercantilism was the Sugar Act of 1764 which made colonists in America had to pay higher tariffs and duties on imports of...
The five characteristics of mercantilism are as follows: Accumulation of wealth and power Belief about wealth being static. It was the core...
The three principles of mercantilism are as follows: Amount of wealth in the world is relatively static A country’s wealth is best...
The invisible hand is an economic concept that describes the unintended greater social benefits and public good brought about by individuals...
Balance of Payment is the accounting of a nations’ monetary transactions with other countries over a particular time period. You can read...