UPSC Prelims – Economy (Objective / MCQs)

UPSC Prelims – Economy (Objective / MCQs)

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1. Recommended Books & Resources

Book / Resource	Purpose / Details
Ramesh Singh – Indian Economy	Comprehensive book for both Prelims and Mains. Covers Indian economic development, planning, banking, taxation, poverty, and government schemes.
Economic Survey (latest edition)	Annual report by the Ministry of Finance, provides current economic trends, policies, and data, highly relevant for Prelims and Interview.
Budget Highlights	Annual Union Budget to understand fiscal policy, government schemes, taxation, and allocations.
Government Websites & Reports	PIB, NITI Aayog, RBI reports for updated economic data and policies.

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2. Strategy to Cover Economy for Prelims

Step 1: Foundation – Ramesh Singh

·         Focus on static and conceptual economy topics:

o    Indian economic development

o    Planning & policy framework

o    Poverty, unemployment, and inclusive growth

o    Banking, financial institutions, and monetary policy

o    Fiscal policy, taxation, and budgeting

o    Government schemes and welfare programs

o    International trade & agreements

Tips: Understand concepts rather than memorizing facts, but remember key figures, schemes, and policies.

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Step 2: Current Affairs – Economic Survey & Budget

·         Economic Survey gives latest trends, GDP growth, sectoral performance, and government initiatives

·         Focus on:

o    Key indicators: GDP, inflation, unemployment, fiscal deficit

o    Important schemes (PM-Kisan, Ayushman Bharat, etc.)

o    Economic challenges & policy recommendations

Tips: Make short notes of statistics, schemes, and government targets.

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Step 3: Revision & Practice

·         Monthly revision of key schemes, policies, and economic concepts

·         Solve previous year Prelims MCQs

·         Follow current economic news for updates

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3. Important Topics (Prelims Focus)

Section	Key Points
Basic Concepts	GDP, GNP, Inflation, Deflation, Fiscal Deficit, Money Supply, Reforms
Indian Economy	Planning history, Five-Year Plans, NITI Aayog, Liberalization (1991), Sectoral contribution
Banking & Finance	RBI functions, Monetary policy, Banking reforms, Digital payments, Financial inclusion
Government Schemes	PM-Kisan, MNREGA, Ayushman Bharat, Pradhan Mantri Awas Yojana
Trade & Global Economy	WTO, FTA, Balance of Payments, Exports & Imports
Current Issues	Unemployment, Poverty, Inequality, Inflation, Fiscal management

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4. Sample Questions – Economy (Prelims MCQs)

1.      Which of the following is considered the "heart of Indian Economy"?
a) Agriculture
b) Service sector
c) Manufacturing
d) Banking
Answer: a) Agriculture

2.      RBI uses which of the following to control money supply in India?
a) Repo rate
b) Cash Reserve Ratio (CRR)
c) Open Market Operations (OMO)
d) All of the above
Answer: d) All of the above

3.      Which scheme aims to provide health insurance cover of ₹5 lakh per family per year?
a) Ayushman Bharat
b) PM-Kisan
c) Pradhan Mantri Awas Yojana
d) National Health Mission
Answer: a) Ayushman Bharat

4.      Fiscal deficit is the difference between:
a) Revenue and expenditure
b) Total expenditure and total receipts of government excluding borrowings
c) Total borrowings and total revenue
d) None of the above
Answer: b) Total expenditure and total receipts of government excluding borrowings

5.      Which organization prepares the Economic Survey of India?
a) Reserve Bank of India
b) NITI Aayog
c) Ministry of Finance
d) Planning Commission
Answer: c) Ministry of Finance

6.      GST in India is an example of:
a) Indirect Tax
b) Direct Tax
c) Income Tax
d) Custom Duty
Answer: a) Indirect Tax

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5. Preparation Tips – Economy for Prelims

1.      Start with Ramesh Singh → Conceptual clarity and static economy

2.      Read Economic Survey & Budget Highlights → Current economic developments

3.      Make concise notes → Key schemes, figures, policy initiatives

4.      Revise monthly → Ensure retention of important facts

5.      Solve MCQs → Previous year papers + mock tests

6.      Follow current economic news → RBI, Government websites, PIB

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Summary

·         Books: Ramesh Singh – Indian Economy (main), Economic Survey (current)

·         Topics: GDP, Inflation, Banking, Fiscal Policy, Government Schemes, Trade

·         Strategy: Read, note-making, revise, practice MCQs

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