{"id":802863,"date":"2024-02-27T16:50:42","date_gmt":"2024-02-27T11:20:42","guid":{"rendered":"https:\/\/leverageedu.com\/discover\/?p=802863"},"modified":"2025-12-18T17:28:55","modified_gmt":"2025-12-18T11:58:55","slug":"exam-prep-conomics-for-upsc","status":"publish","type":"post","link":"https:\/\/leverageedu.com\/discover\/indian-exams\/exam-prep-conomics-for-upsc\/","title":{"rendered":"Economics For UPSC Prelims: Previous Year Questions, Tips and Tricks to Prepare, and Best Books\ud83d\udc69\u200d\ud83c\udf93"},"content":{"rendered":"\n

There are lakhs of students who prepare each year for this Union Public Service Commission (UPSC<\/strong>) examination. While preparing for any exam, practising questions is a key to success. Economics<\/a><\/strong> 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. <\/p>\n\n\n\n\n\n\n

Economics For UPSC Prelims PYQs<\/h2>\n\n\n\n

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 .<\/p>\n\n\n\n

Economics For UPSC Prelims 2022<\/h3>\n\n\n\n
1. In India, which one of the following is responsible for maintaining price stability by controlling inflation?<\/strong>

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.<\/p> <\/div>

2. Rapid Financing Instrument\u201d and \u201cRapid Credit Facility\u201d are related to the provisions of lending by which one of the following?<\/strong>

A. Asian Development Bank
B. International Monetary Fund
C. United Nations Environment Programme Finance Initiative
D. World Bank
The correct answer is B.<\/p> <\/div>

3. In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers ?<\/strong>

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.<\/p> <\/div>

4. With reference to the Indian economy, consider the following statements:<\/strong>

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.
<\/p> <\/div>

5. In India, what is the role of the Coal Controller\u2019s Organization (CCO)?<\/strong>

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 \u2018 to the Government\u2019s 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.<\/p> <\/div> <\/div>\n\n\n\n

Economics For UPSC Prelims 2021<\/h3>\n\n\n\n
1. The money multiplier in an economy increases with which one of the following?<\/strong>

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.
<\/p> <\/div>

2. With reference to \u201cWater Credit\u2019, consider the following statements:<\/strong>

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.
<\/p> <\/div>

3. With reference to India, consider the following statements:<\/strong>

1. Retail investors through demat account can invest in \u2018Treasury Bills\u2019 and \u2018Government of India Debt Bonds\u2019 in primary market.
2. The \u2018Negotiated Dealing System-Order Matching\u2019 is a government securities trading platform of the Reserve Bank of India.
3. The \u2018Central Depository Services Ltd.\u2019 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.
<\/p> <\/div>

4. In India, the central bank\u2019s function as the \u2018lender of last resort\u2019 usually refers to which of the following?<\/strong>

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.
<\/p> <\/div>

5. With reference to casual workers employed in India, consider the following statements:<\/strong>

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.
<\/p> <\/div> <\/div>\n\n\n\n

Economics For UPSC Prelims 2020<\/h3>\n\n\n\n
1. If the RBI decides to adopt an expansionist monetary policy, which of the following would it not<\/em><\/strong> do?<\/strong>

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.
<\/p> <\/div>

2. In India, the term \u201cPublic Key Infrastructure\u201d is used in the context of<\/strong>

A. Digital security infrastructure
B. Food security infrastructure
C. Health care and education infrastructure
D. Telecommunication and transportation infrastructure

The correct answer is A.<\/p> <\/div>

3. With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:<\/strong>

1. Worker productivity (Rs per worker at 2004 \u2013 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.<\/p> <\/div>

4. If another global financial crisis happens in the near future, which of the following actions\/policies are most likely to give some immunity to India?<\/strong>

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.
<\/p> <\/div>

5. Consider the following statements:<\/strong>

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.
<\/p> <\/div> <\/div>\n\n\n\n

Economics For UPSC Prelims 2019<\/h3>\n\n\n\n
1. Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?<\/strong>

A. Certificate of Deposit
B. Commercial Paper
C. Promissory Note
D. Participatory Note
The correct answer is D.<\/p> <\/div>

2. In the context of India, which of the following factors is\/are contributor\/ contributors to reducing the risk of a currency crisis?<\/strong>

1. The foreign currency earnings of India\u2019s 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.
<\/p> <\/div>

3. With reference to India\u2019s Five-Year Plans, which of the following statements is\/are correct?<\/strong>

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.
<\/p> <\/div>

4. With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements:<\/strong>

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.
<\/p> <\/div>

5. What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?<\/strong>

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.<\/p> <\/div> <\/div>\n\n\n\n

Economics For UPSC Prelims 2018<\/h3>\n\n\n\n
1. If a commodity is provided free to the public by the Government, then<\/strong>

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.
<\/p> <\/div>

2. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if<\/strong>

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.<\/p> <\/div>

3. Consider the following statements :<\/strong>

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.
<\/p> <\/div>

Consider the following statements :<\/strong>

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.
<\/p> <\/div>

5. Despite being a high saving economy, capital formation may not result in significant increase in output due to<\/strong>

A. weak administrative machinery
B. illiteracy
C. high population density
D. high capital-output ratio

The correct answer is D.<\/p> <\/div> <\/div>\n\n\n\n

Also Read: Know all about International Economics<\/a><\/strong><\/p>\n\n\n\n

Tips and Tricks to Prepare Economics For UPSC <\/h2>\n\n\n\n

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. <\/p>\n\n\n\n

Understand the Exam Pattern\ud83d\udcdd<\/strong><\/p>\n\n\n\n