Check Important Topics to Study for Preparation of Economics Section

UPSC (IAS) Prelims 2020 Exam is due on October 4. Aspirants must be vigorously preparing for the exam to qualify the first stage of UPSC (IAS) 2020. The syllabus for the UPSC IAS exam is quite extensive, hence the students must understand the syllabus and prepare each subject and section with equal importance. In this article, we have provided all the important topics which should be covered while preparing for the Economics section.

Economic Development and Inclusive Growth

➨ Factors of Economic Development

➨ Financial Inclusion

➨ Pradhan Mantri Jan Dhan Yojana

➨ Development Strategy of India

Let’s have a look at a reference question asked from this topic in UPSC (CSE) Prelims previous year paper:

Ques: Increase in absolute and per capita, real GNP do not connote a higher level of economic development, if

(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.

Answer.c

UPSC (IAS) Prelims 2020: Subject-Wise Study Material for Preparation/ Revision

Poverty and Unemployment

➨ Types of Poverty

➨ Poverty Alleviation Programs

➨ Tendulkar Panel Report

➨ Types & Causes of Unemployment

➨ Important Scheme & Programs related to Unemployment

• Antyodya Yojna
• Food for Work Scheme
• TRYSEM
• Jawahar Rojgar Yojana
• Indira Awas Yojana etc.

➨ Poverty Alleviation Projects

• MGNREGA
• Sarnajayani Gram Swarojgar Yojana
• National Rural Livelihood Project etc. 

Let’s have a look at a reference question asked from this topic in UPSC (CSE) Prelims previous year paper:

Ques In a given year in India, official poverty lines are higher in some states than in others because

(a) poverty rates vary from State to State

(b) price levels vary from State to State

(c) Gross State Product varies from State to State

(d) quality of public distribution varies from State to State

Answer: b

UPSC 2020 (IAS) Prelims: Check Important Questions for Preparation of Economy Section

Planning

➨ Planning Commission

➨ NITI Aayog

➨ Five Year Plans

➨ Employment Exchange

Let’s have a look at a reference question asked from this topic in UPSC (CSE) Prelims previous year paper:

Ques:  With reference to India’s Five-Year Plans, which of the following statements is/are correct?

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

Answer: a

Investment Models

➨ PPP Models of India

➨ Principles of PPP

Let’s have a look at a reference question asked from this topic in UPSC (CSE) Prelims previous year paper:

Ques:  Consider the following statements

1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries.
2. In terms of PPP dollars, India is the sixth-largest economy in the world.

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

Answer: a

Indian Agriculture

➨ Role of Agriculture in Indian Economy

➨ Land Reforms in India

➨ Impact of Green Revolution

➨ Agriculture & Five Year Plans

➨ Schemes & Programs Launched by the Government

➨ Minimum Support Price

➨ food Policy

➨ The National Food Security Act

➨ Agriculture Finance

➨ Agriculture Insurance

➨ NABARD

Let’s have a look at a reference question asked from this topic in UPSC (CSE) Prelims previous year paper:

Ques: The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus

(a) transportation cost only        

(b) interest cost only     

(c) procurement incidentals and distribution cost                             

(d) procurement incidentals and charges for godowns  

Answer: c

Industrial Policy

➨ Industrial policy

➨ Public Sector Reforms

➨ Important Schemes and Programmes for SME

➨ NBFCs

➨ Mutual funds

➨ Stock exchange

➨ SEBI

Let’s have a look at a reference question asked from this topic in UPSC (CSE) Prelims previous year paper:

Ques: 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?

(a) Certificate of Deposit

(b) Commercial Paper

(c) Promissory Note

(d) Participatory Note

Answer: d

Money & Banking

➨ Money Supply & components

➨ Commercial Bank of India

➨ Inflation (reasons, Effects, Control measures)

➨ RBI

➨ Monetary Policy

➨ Banking Sector Reforms

➨ SHGs

➨ RBI guidelines on Microfinancing

Let’s have a look at a reference question asked from this topic in UPSC (CSE) Prelims previous year paper:

Ques: The money multiplier in an economy increases with which one of the following?

(a) Increase in the cash reserve ratio

(b) Increase in the banking habit of the population

(c) Increase in the statutory liquidity ratio

(d) Increase in the population of the country

Answer: b

Ques: Consider the following statements:

1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
3. 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

Answer.c

Important Banking/Finance/Insurance Committees Constituted in 2019 

Fiscal Policy

➨ Tax Structure

➨ Tax Reforms

➨ GST

➨ Finance Commission (recommendations)

➨ Budget

➨ FRBM Act

Let’s have a look at a reference question asked from this topic in UPSC (CSE) Prelims previous year paper:

Ques: What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’?

1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer. a

UPSC 2020 (IAS) Prelims: Check Important Questions on Government Schemes, Acts & Organisations

Foreign Factors

➨ India’s Foreign Trade

➨ Foreign Trade Policy

➨ Balance of Payments

➨ FDI

➨ Foreign Exchange Reserves

Let’s have a look at a reference question asked from this topic in UPSC (CSE) Prelims previous year paper:

Ques: In the context of India, which of the following factors is/are contributor/ contributors to reducing the risk of a currency crisis?

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

Answer: b

Global Financial Crisis

➨ Brexit

➨ Brussels Agreement

➨ Structural Deficit

➨ The Fiscal Compact

➨ Euro Zone Crisis

International Organisations

➨ IMF

➨ World Bank

➨ GATT

➨ WTO

➨ G-20

➨ OPEC

➨ Asian Development Bank

➨ World Intellectual Property Organisation

Let’s have a look at a reference question asked from this topic in UPSC (CSE) Prelims previous year paper:
Ques: With reference to an initiative called ‘The Economics of Ecosystems and Biodiversity (TEEB)’, which of the following statements is/are correct?

1. It is an initiative hosted by UNEP, IMF and World Economic Forum.
   2. It is a global initiative that focuses on drawing attention to the economic benefits of biodiversity.
   3. It presents an approach that can help decision-makers recognize, demonstrate and capture the value of ecosystems and biodiversity.

Select the correct answer using the code given below.

(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer. c