UPSC CSE Mains Economics Syllabus
(These syllabus may change from time to time. Please check with the relevant Public Service Commission websites for any changes in the syllabus)
Paper - I
1. Advanced Micro Economics:
(a) Marshallian and Walrasiam Approaches to Price determination.
(b) Alternative Distribution Theories: Ricardo, Kaldor, Kaleeki
(c) Markets Structure: Monopolistic Competition, Duopoly, Oligopoly.
(d) Modern Welfare Criteria: Pareto Hicks & Scitovsky, Arrow’s Impossibility Theorem, A.K. Sen’s Social Welfare Function.
2. Advanced Macro Economics: Approaches to Employment Income and Interest Rate determination: Classical, Keynes (IS-LM) curve, Neo classical synthesis and New classical, Theories of Interest Rate determination and Interest Rate Structure.
3. Money - Banking and Finance:
(a) Demand for and Supply of Money: Money Multiplier Quantity Theory of Money (Fisher, Pique and Friedman) and Keyne’s Theory on Demand for Money, Goals and Instruments of Monetary Management in Closed and Open Economies. Relation between the Central Bank and the Treasury. Proposal for ceiling on growth rate of money.
(b) Public Finance and its Role in Market Economy: In stabilization of supply, allocation of resources and in distribution and development. Sources of Govt. revenue, forms of Taxes and Subsidies, their incidence and effects. Limits to taxation, loans, crowding-out effects and limits to borrowings. Public Expenditure and its effects.
4. International Economics:
(a) Old and New Theories of International Trade
(c) Balance of Payments Adjustments: Alternative Approaches.
(a) Theories of growth:
(c) Economic development and International Trade and Investment, Role of Multinationals.
(d) Planning and Economic Development: changing role of Markets and Planning, Private- Public Partnership
(e) Welfare indicators and measures of growth – Human Development Indices. The basic needs approach.
(f) Development and Environmental Sustainability – Renewable and Non Renewable Resources, Environmental Degradation, Intergenerational equity development.
Paper - II
1. Indian Economy in Pre-Independence Era: Land System and its changes, Commercialization of agriculture, Drain theory, Laissez faire theory and critique. Manufacture and Transport: Jute, Cotton, Railways, Money and Credit.
2. Indian Economy after Independence:
A The Pre Liberalization Era:
1. A market with few producers in the Industry
(A) Oligopoly (B) Monopsony (C) Duopoly (D) Cartel
2. In case of deficit budget, when the deficits are covered through taxes, that budget is called :
(A) surplus budget (B) balanced budget (C) unbalanced budget (D) none of these
3. The WTO was founded in
(A) 1995 (B) 1998 (C) 2000 (D) 1996
4. Privatisation of the public sector enterprises by selling off part of the equity of PSEs to the public is known as
(A) disinvestment (B) equity share (C) profit (D) dividend
5. Which have been removed to increase the competitive position of Indian goods in the international markets ?
(A) Import duties (B) Export duties (C) Tariffs (D) Quota
6. Which is the term used to refer the relationship between human beings and their physical environment ?
(A) Human physiology (B) Human ecology (C) Human environment (D) None of these
7. The standard of living is often measured by
(A) Real GDP per capita (B) Real GDP (C) Real GDP population (D) Real GDP plus depreciation
8. The Gini Coefficient measures
(A) Income inequality (B) Inflation (C) Unemployment (D) Economic growth
9. The year in which Burgress and Park developed their theory of urban ecology
(A) 1925 (B) 1935 (C) 1915 (D) none of these
10. Which of the following is a stage within the 'product life cycle' ?
(A) Maturity (B) Profitability (C) Abandonment (D) Regeneration
11. An organisation's equal opportunities policy should be concerned with which of the following ?
(A) Age discrimination (B) Opportunity cost (C) Globalisation of supply (D) the balanced scorecard
12. Which of the following describes an economic market that is controlled by two main suppliers ?
(A) Monopoly (B) Price discrimination (C) Duopoly (D) Perfect competition
13. Which of the following explains how a Public sector organization obtains its Funds ? (A) from direct and indirect taxes
(B) from money invested by shareholders
(C) from donations made by the public
(D) from sales in overseas markets
14. 'Dynamic inefficiency' in the context of a model of economic growth means
(A) the economy's output per unit labour is below its steady-state value
(B) the economy's unemployment rate is too high
(C) the economy's steady state is not at the golden-rule steady-state
(D) none of the answers are correct
15. 'Capital Widening' refers to that part of investment needed to
(A) increase the capital per unit effective labour ratio
(B) replace capital that has depreciate
(C) equip new units of effective workers at the same capital per unit effective labour ratio
(D) all of the above
16. A 'PEST' analysis is conducted on which of the following of an organisation's environments ?
(A) Internal environment (B) Market environment (C) Historical environment (D) Macro environment
17. The movement of people from central cities to smaller communities in the surrounding areas is known as
(A) Reverse migration (B) Under urbanization (C) Suburbanisation (D) Over-urbanisation
18. The gendering of World Politics is seen in which areas ?
(A) Prostitution and human trafficking (B) Civil wars and refugee flows (C) Trade and development (D) All the options given above are correct
19. The period of the business cycle in which real GDP is increasing is called the :
(A) expansion (B) peak (C) recession (D) depression
20. A type of unemployment in which workers are in between jobs or are searching for new and better jobs is called
(A) Frictional unemployment (B) Cyclical unemployment (C) Structural unemployment (D) Turnover
21. Which of the following is a "loser" from unexpected inflation ?
(A) Workers with COLAs (B) people who own treasury Bills (C) the middle class (D) people who own homes and have fixed rate martgages
22. The largest transfer in the federal budget is :
(A) defense (B) education (C) Social security (D) Welfare
23. The Philips curve describes the relationship between :
(A) the federal budget deficit and the trade deficit
(B) savings and investment
(C) the unemployment rate and the inflation rate
(D) marginal taxes rates and tax revenues
24. According to the monetarists, in the long-run, the Phillips curve is
(A) vertical (B) horizontal (C) downward sloping (D) upward-sloping
25. Who has given the concept of urban fringe ?
(A) M.N. Srinivas (B) K.M. Kapadia (C) S.C. Dube (D) None of these
26. Who introduced the concept of Gesellschalt ?
(A) George Simmel (B) Durkheim (C) Tonnies (D) None of these
27. What is "double burden" ?
(A) It refers to the disproportionate share of housework done by women
(B) It dates to the 17th century
(C) It is rooted in gendered conceptions of the distinction between public and private life (D) All of the options given above are correct
28. What is the gendered division of labour ?
(A) It is based on gender-structured conceptions of appropriate work
(B) It has led to an increase in women's consumption worldwide.
(C) It negates the 'double burden'
(D) none of the answers given are correct
29. What is the impact of globalization ?
(A) It has created new areas of women's advancement
(B) It has led to new challenges and dangers for women
(C) It has not changed the fundamental inequality of gender-relationships in the world enough
(D) all of the options given above are correct
30. Who developed concentric-zone theory of city ?
(A) Louis Wirth (B) E. Burgess (C) M.N. Srinivas (D) M.S.A. Rao
31. Who among the following economists emphasized the role of non-economic factors in explaining growth ?
(A) R.M. Solow (B) Dusenberry (C) N. Kaldor (D) Harrod
32. For a linear demand curve, which of the following is true ?
(A) Elasticity of demand is unity at all points.
(B) Elasticity of demand is constant at all points.
(C) Elasticity increases as one slides down the demand curve.
(D) Elasticity declines as one slides down the demand curve.
33. Hedging in the foreign exchange market refers to :
(A) An act of devaluation
(B) Not covering a risk of foreign exchange in future
(C) Covering a risk of foreign exchange in future
(D) None of the above
34. New Trade Policy 2015-20 has introduced a new scheme which is called
(A) Merchandise Export from India Scheme
(B) Export from India Scheme
(C) Merchandise Trade from India Scheme
(D) Trade from India Scheme
35. Inclusive growth objective was given for the first time in which Plan of India ?
(A) 9th Five Year Plan (B) 10th Five Year Plan
(C) 11th Five Year Plan (D) 12th Five Year Plan
36. Type-I error is defined as :
(A) Reject Null-hypothesis when it is false
(B) Reject Null-hypothesis when it is true
(C) Accept Null-hypothesis when it is true
(D) Accept Null-hypothesis when it is false
37. Labour market reforms aim at :
(A) Job security (B) Minimum wage (C) Labour market flexibility (D) Employment insurance
38. Which of the following is credited with introduction of LPG model of economic development in India
(A) Dr. C Rangarajan (B) Dr. Montek Singh Ahluwalia (C) Dr. Amartya Sen (D) Dr. Manmohan Singh
39. Philips curve sets up a relation between
(A) Taxes and inflation (B) Inflation and unemployment (C) Money Supply and aggregate demand (D) Price and cost of production
41. The relationship between aggregate saving and income is known as
(A) Saving function (B) Demand Function (C) Supply function (D) Consumption function
42. The properties of General Equilibrium state are called
(A) Efficiency (B) Pareto efficiency (C) Property efficiency (D) Accuracy
43. The negative of the slope of the PPC is called
(A) MRPT (B) MRPS (C) Negative productivity (D) disinvestment
44. The new share price Index of Mumbai Share Market is
(A) DOLEX (B) UREX (C) FOREX (D) SENSEX
45. Who developed Kinked Demand Curve Model ?
(A) Samuelson (B) Paul Sweezy (C) Mahalanobis (D) Marshall
46. A market in which there is only one seller and only one buyer is called
(A) Duopoly (B) bilateral monopoly (C) monopsony (D) oligopoly
47. A producer cannot cross the iso-cost line because of
(A) fixed outlay (B) entire outlay (C) price (D) none of the above
48. Who is the founder of behaviouralistic theories ?
(A) Bain (B) Cyert and March (C) Modigliani (D) Karl Marx
49. Gilt edged market means
(A) bullion market (B) market of government securities (C) market of guns (D) market of pure metals
50. A mathematical expression showing the relationship between volume of output and its total cost of production is called
(A) cost-function (B) price-function (C) demand function (D) supply function
51. In the Keynesian Model of aggregate expenditure, real GDP is determined by the
(A) Level of taxes (B) Level of aggregate demand (C) Price level (D) Level of aggregate supply
52. An increase in expected future income
(A) shifts the saving function upward (B) decreases consumption expenditure (C) increases saving (D) shifts the consumption function upward
53. If the marginal propensity to save is 0.6, then the Marginal Propensity to consume Is (A) 1.0 (B) 0.4 (C) 0.6 (D) not determinable
54. When the consumption function becomes steeper,
(A) the saving function also become steeper (B) the MPC falls (C) the MPC rises (D) loss of every dollar is consumed
55. The only way to increase the output of one good is to reduce the output of another. This allocation of inputs is said to be :
(A) Consumption efficient (B) Production efficient (C) Economic efficient (D) None of the above
56. A good for which consumption falls as an individual's income rises
(A) inferior good (B) consumption good (C) durable good (D) non-durable good
57. The increase in consumption brought about by a increase in income, when the prices of goods are held constant
(A) substitution effect (B) income effect (C) price effect (D) none of the above
58. A curve that describes the relationship between the quantity of a good consumed and income
(A) Kinked curve (B) Engel curve (C) Demand curve (D) None of the above
59. A form of implicit collusion, where one firm in the market sets the price and other firms follow suit
(A) cartel (B) giffen good (C) price leadership (D) price taker
60. A form of intertemporal price discrimination in which peak users pay more than off-peak users because marginal cost is higher during peak periods
(A) Peak-load pricing (B) peak-load effect (C) peak-load consumption (D) none of the above
61. Segmented labour markets imply :
(A) labour discrimination
(B) Labour paid wage less than MRP
(C) MP theory of wage fails to determine market outcomes
(D) Equality of wages of different types of labour Which of the above is incorrect ?
62. In India those farmers are called 'Marginal Farmers' who hold land upto :
(A) 1 hectare (B) 2 hectares (C) 3 hectares (D) 4 hectares
63. Which of the following is not related to 'empowerment of women' ?
(A) Gender Development Index (B) Gender Empowerment Measure (C) Gender Budgeting (D) Gender discrimination
64. The agricultural census is done at which one of the following intervals ?
(A) once in five years (B) every year (C) once in ten years (D) twice
65. The maximum amount that a customer is willing to pay for a good
(A) real price (B) reservation price (C) marginal price (D) absolute price
66. Tobin tax is a tax on :
(A) transactions in the share market (B) transactions in the money market (C) transactions in the commodity market (D) transactions in the foreign exchange market
67. The discriminating monopolist will charge a higher price in the market in which the price elasticity of :
(A) demand is smaller (B) supply is smaller (C) demand is greater (D) supply is greater
68. A model of oligopoly in which one firm sets output before the other firms do
(A) strategic model (B) stackelberg model (C) suspense model (D) duopoly
69. An expenditure that has already been made and cannot be recovered
(A) fixed cost (B) sunk cost (C) variable cost (D) real cost
70. Dividing consumers into two or more groups with different demands for a product in order to charge different prices to each group
(A) first degree price discrimination (B) second degree price discrimination (C) third degree price discrimination (D) none of the above