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There are lakhs of students who prepare each year for this Union Public Service Commission (UPSC) examination. While preparing for any exam, practising questions is a key to success. Economics is the trickiest part to handle for the majority of students. To perform well in this examination, you will need to follow a well-structured timetable. In this article, we have curated the UPSC prelims economy question bank, which contains different questions from previous years. Practise them thoroughly to ace the examination. Analysing the PYQs can contribute a lot to clearing the examination in one go.
Table of Contents
Economics For UPSC Prelims PYQs
We have covered the years 2022 to 2020. Students can use these questions to determine the difficulty level as well as the types of questions they can expect in economics.Below you can find the previous years economics upsc prelims questions .
Economics For UPSC Prelims 2022
A. Department of Consumer Affairs
B. Expenditure Management Commission
C. Financial Stability and Development Council
D. Reserve Bank of India
The correct answer is D.
A. Asian Development Bank
B. International Monetary Fund
C. United Nations Environment Programme Finance Initiative
D. World Bank
The correct answer is B.
A. Central Statistics Office
B. Department for Promotion of Industry and Internal Trade
C. Labour Bureau
D. National Technical Manpower Information System
The correct answer is C.
1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.
Which of the above statements are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
The correct answer is C.
CCO is the major source of Coal Statistics in Government of India.
It monitors progress of development of Captive Coal/Lignite blocks.
It hears any objection ‘ to the Government’s notification relating to acquisition of coal-bearing areas.
It ensures that coal mining companies deliver the coal to end users in the prescribed time.
Select the correct answer using the code given below:
A. 1, 2 and 3 only
B. 3 and 4 only
C. 1 and 2 only
D. 1, 2 and 4 only
The correct answer is A.
Economics For UPSC Prelims 2021
A. Increase in the Cash Reserve Ratio in the banks
B. Increase in the Statutory Liquidity Ratio in the banks
C. Increase in the banking habit of the people
D. Increase in the population of the country
The correct answer is C.
1. It puts microfinance tools to work in the water and sanitation sector.
2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank.
3. It aims to enable the poor people to meet their water needs without depending on subsidies.
Which of the statements given above are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
The correct answer is C.
1. Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in primary market.
2. The ‘Negotiated Dealing System-Order Matching’ is a government securities trading platform of the Reserve Bank of India.
3. The ‘Central Depository Services Ltd.’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
Which of the statements given above is/are correct?
A. 1 only
B. 1 and 2 only
C. 3 only
D. 2 and 3 only
The correct answer is B.
1. Lending to trade and industry-bodies when they fail to borrow from other sources
2. Providing liquidity to the banks having a temporary crisis
3. Lending to governments to finance budgetary deficits
4. Select the correct answer using the code given below.
A. 1 and 2 only
B. 2 only
C. 2 and 3 only
D. 3 only
The correct answer is B.
1. All casual workers are entitled for Employees Provident Fund coverage.
2. All casual workers are entitled for regular working hours and overtime payment.
3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.
Which of the above statements are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
The correct answer is B.
Economics For UPSC Prelims 2020
1. Cut and optimize the Statutory Liquidity Ratio
2. Increase the Marginal Standing Facility Rate
3. Cut the Bank Rate and Repo Rate
Select the correct answer using the code given below:
A. 1 and 2 only
B. 2 only
C. 1 and 3 only
D. 1, 2 and 3
The correct answer is B.
A. Digital security infrastructure
B. Food security infrastructure
C. Health care and education infrastructure
D. Telecommunication and transportation infrastructure
The correct answer is A.
1. Worker productivity (Rs per worker at 2004 – 05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in non-farm economy increased.
4. The growth rate in rural employment decreased.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 3 and 4 only
C. 3 only
D. 1, 2 and 4 only
The correct answer is B.
1. Not depending on short-term foreign borrowings
2. Opening up to more foreign banks
3. Maintaining full capital account convertibility
Select the correct answer using the code given below:
A. 1 only
B. 1 and 2 only
C. 3 only
D. 1, 2 and 3
The correct answer is A.
1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
The correct answer is B.
Economics For UPSC Prelims 2019
A. Certificate of Deposit
B. Commercial Paper
C. Promissory Note
D. Participatory Note
The correct answer is D.
1. The foreign currency earnings of India’s IT sector
2. Increasing the government expenditure
3. Remittances from Indians abroad
Select the correct answer using the code given below.
A. 1 only
B. 1 and 3 only
C. 2 only
D. 1, 2 and 3
The correct answer is B.
1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries.
2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.
Select the correct answer using the code given below.
A. 1 and 2 only
B. 2 only
C. 3 only
D. 1, 2 and 3
The correct answer is A.
1. AIIB has more than 80 member nations.
2. India is the largest shareholder in AIIB.
3. AIIB does not have any members from outside Asia.
Which of the statements given above is/are correct?
A. 1 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
The correct answer is A.
A .To lessen the Government of India’s perennial burden of fiscal deficit and current account deficit
B. To support the infrastructure projects of Central and State Governments
C. To act as independent regulator in case of applications for loans of Rs 50 crore or more
D. To aim at faster resolution of stressed assets of Rs 50 crore or more which are under consortium
The correct answer is D.
Economics For UPSC Prelims 2018
A. the opportunity cost is zero.
B. the opportunity cost is ignored.
C. the opportunity cost is transferred from the consumers of the product to the tax-paying public.
D. the opportunity cost is transferred from the consumers of the product to the Government.
The correct answer is C.
A. industrial output fails to keep pace with agricultural output.
B. agricultural output fails to keep pace with industrial output.
C. poverty and unemployment increase.
D. imports grow faster than exports.
The correct answer is C.
Human capital formation as a concept is better explained in terms of a process which enables
1. individuals of a country to accumulate more capital.
2. increasing the knowledge, skill levels and capacities of the people of the country.
3. accumulation of tangible wealth.
4. accumulation of intangible wealth.
Which of the statements given above is/are correct ?
(a) 1 and 2
(b) 2 only
(c) 2 and 4
(d) 1, 3 and 4
A. 1 and 2 only
B. 2 only
C. 2 and 4 only
D. 1, 3 and 4 only
The correct answer is C.
The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
Treasury bills offer are issued at a discount from the par value.
Which of the statements given above is/are correct ?
A. 1 and 2 only
B. 3 only
C. 2 and 3 only
D. 1, 2 and 3
The correct answer is C.
A. weak administrative machinery
B. illiteracy
C. high population density
D. high capital-output ratio
The correct answer is D.
Tips and Tricks to Prepare Economics For UPSC
Preparing for the UPSC (Union Public Service Commission) prelims in economics demands a lot of dedication, a structured and focused approach, and more things like consistency, hard work, etc. Here are some of the general tips that will surely help you to prepare well and ace at the examination.
Understand the Exam Pattern📝
- First of all, you need to understand the UPSC prelims economics exam pattern very keenly.
- Make sure you are well aware with the exam pattern and the economics-related topics and weightage.
Syllabus Understanding📚
- Make sure that you are wel aware with the syllabus and has a deep understanding of it.
- Create a list of important topics and revise them again and again to retain them properly.
- Apart from this, make sure that you atleast cover the whole syllabus once.
Current Affairs📰
- Stay updated with the current economic affairs, both national and international.
- Develop a habit of reading newspapers, magazines, and online sources regularly.
- Keep yourself updated with all the economical affairs that are happening and specifically are hot topics.
Make Notes📖
- Make proper notes while studying.
- Mark all the important concepts and note them down at one place.
- Writing important topics more than once, helps you to retain the topic for a longer time. Also, if you will write a topics with its proper understanding, you develop concept clarity.
- It is very much better to have concept clarity than directly mugging up the things.
Time Management 👍
- Make sure that you solve ample questions before sitting for the examination.
- Also, do not forget to practice time management while solving the questions.
- Good time management skills will actually help you to divide your time among multiple questions on the examination day.
Proper Sleep & Healthy Diet 💤
- Minimum 6-7 hours of sound sleep is very very important for your brain and body to work properly.
- Also, eating healthy food will kill lethargicness in the crucial examination days.
Proper Revision 📖👨💻
- Remmember that proper revision is very important to not miss on any important concept.
- Revise the most important information again and again to perform best at the examination.
Stay Motivated 👩🎓
- Last but not least, always stay positive and motivated toward your preparation.
- Be confident about your preparation and attempt the questions with utmost faith.
List of Important Concepts – UPSC economy syllabus:
- Economic growth and development – basic concept and definition of economy and economics, uses and transfer of resources, distributive effects, macro and micro economic policy, micro-macro balance, distributive impact of economic policies, development versus growth, determinant of growth and development, concepts such as HPI/MPI, HDI, PQLI, GEM, GDI/GII, TAI, Green index, sustainable development, India’s ranking in the various indices.
- Inclusion – definition, relevance, types, financial inclusion, recent initiatives.
- Poverty – definitions, causes, distribution-deprivation, income versus calories, measurement of poverty, status of poverty, eradication programmes, poverty and resource policy, tribal rights and issues, livelihood mission.
- Fiscal policy – definition, component, receipts, revenue and capital account, tax revenue, expenditure, budget.
- Demographics – census data, populations by gender, by state, by age group, socio-economic status, caste, religion, literacy levels, etc. Trends in human development – interstate comparison, etc.
- Also, focus on issues currently in news related to the above topics – MNERGS, MSMEs, Make in India, industrial corridors, NITI Ayog, black money, international treaties and organisations, India’s policies with neighbours.
- Social issues – financing health policy, education policy, sanitation, drinking water, social security, infrastructure policy, international trade issues, regional cooperation.
Recommended Books To Prepare for UPSC Prelims Economics 📚
Below is the recommended books to prepare for the UPSC Prelims Economics examination.
| Book Name | Publications |
| Indian Economy | Ramesh Singh |
| Indian Economy For Civil Services | Nitin Singhania |
| The Indian Economy | Sanjiv Verma |
| Indian Economy | Datt & Sundharam |
| Banking | S.B. Gupta |
| The Art of Policymaking in India | Kaushik Basu |
FAQs
Yes, Indian economy is the most toughest part to handle in the UPSC prelims examination.
There are various books that solves the purpose for UPSC prelims economics, but The Art of Policymaking in India by Kaushik Basu is the most read by the students.
The weightage for any subject in the UPSC prelims examination is not fixed, it keeps on fluctuating.
This was all about the “Economics For UPSC Prelims”. For more such informative blogs, check out our UPSC Exams Section, or you can learn more about us by visiting our Indian exams page.