Economy Previous Year Questions UPSC – Economy PYQ UPSC Prelims (2023-2013)
By BYJU'S Exam Prep
Updated on: September 15th, 2023
Economy previous year questions UPSC Prelims can be downloaded year-wise from the links shared in this article. It is a highly important subject in the Prelims stage as out of the total number of questions, around 13 to 16% are asked from Economics topics. Some of the common topics from which UPSC Prelims economy questions are asked include inflation, monetary policy, RBI policies and ongoing events, e-commerce, foreign direct investment, etc.
This year, the Prelims exam is scheduled to take place on 28 May 2023, so it is high time for candidates to start preparing through UPSC economics previous year questions to understand the difficulty level and the type of questions generally asked. In this article, one can find the Economy previous year questions UPSC Prelims for the last 10 years from 2013 to 2022 along with their answers, trends, and the preparation tips suggested by experts to score well in this subject.
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Economy Previous Year Questions UPSC Prelims
The economy section holds significant importance in the UPSC Prelims exam. The economy previous year questions UPSC can be related to current affairs, and candidates have to prepare accordingly. Candidates should go through the UPSC Syllabus carefully and analyse the previous year’s question papers for effective preparation. We have provided the direct download links of UPSC Prelims economy questions for the last 10 years here:
- UPSC Prelims Economy Questions 2022
- UPSC Prelims Economy Questions 2021
- Economy Previous Year Questions UPSC 2020
- UPSC Economics Questions 2019
- Economy PYQ UPSC Prelims 2018
- UPSC Prelims Economy Questions 2017
- UPSC Prelims Economy Questions 2016
- Economics Previous Year Question Paper UPSC 2015
- UPSC Prelims Economy Questions 2014
- UPSC Prelims Economy Questions 2013
Topics of UPSC Prelims Economy Questions
Candidates need to know the topics from which economy previous year questions in UPSC Prelims were asked as it would help them figure out the types of questions asked topic-wise from this subject. In addition, candidates would be able to know the best strategy to prepare for the UPSC Prelims Economy Questions and ace this section.
UPSC Prelims Economy Questions 2022
Last year, the UPSC Prelims exam was conducted on 05 June 2022 in which 15.3% of questions are from Economics subject. We have covered all the UPSC Prelims economy questions of 2022 below.
Question: “Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which of the following:
Asian Development Bank, International Monetary Fund, United Nations Environment Programme Finance Initiative, World Bank
Answer: International Monetary Fund
Question: In India, which one of the following is responsible for maintaining price stability by controlling inflation?
Department of Consumer Affairs, Expenditure Management Commission, Financial Stability and Development Council, Reserve Bank of India
Answer: Reserve Bank of India
Question: With reference to the Indian economy, consider the following statements:
- If the inflation is too high, the Reserve Bank of India (RBI) is likely to buy government securities.
- If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
- If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.
Which of the statements given above are correct? – 1 and 2 only, 2 and 3 only, 1 and 3 only, 1, 2 and 3
Answer: 2 and 3 only
Question: Consider the following statements:
- In India, credit rating agencies are regulated by the Reserve Bank of India.
- The rating agency popularly known as ICRA is a public limited company.
- Brickwork Ratings is an Indian credit rating agency.
Which of the statements given above is correct? – 1 and 2 only, 2 and 3 only, 1 and 3 only, 1, 2 and 3
Answer: 2 and 3 only
UPSC Economics Previous Year Questions 2021
The UPSC Economy Prelims questions asked in 2021 are given below.
Question: Which among the following steps is most likely to be taken at the time of an economic recession?
- Cut in tax rates accompanied by an increase in interest rate
- Increase in expenditure on public projects
- Increase in tax rates accompanied by reduction of interest rate
- Reduction of expenditure on public projects
Answer: Increase in expenditure on public projects
Question: The money multiplier in an economy increases with which one of the following?
- Increase in the Cash Reserve Ratio in the banks
- Increase in the Statutory Liquidity Ratio in the banks
- Increase in the banking habit of the people
- Increase in the population of the country
Answer: Increase in the banking habit of the people
Question: Consider the following statements:
- The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
- Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
- The Governor of the RBI draws his power from the RBI Act.
Which of the above statements are correct? – 1 and 2 only, 2 and 3 only, 1 and 3 only, 1, 2 and 3
Answer: 1 and 3 only
Question: Which one of the following is likely to be one of the most inflationary in its effects? – Repayment of public debt, Borrowing from the public to finance a budget deficit, Borrowing from the banks to finance a budget deficit, Creation of new money to finance a budget deficit
Answer: Creation of new money to finance a budget deficit
Economy Previous Year Questions UPSC Prelims Trend
The number of UPSC Prelims Economy Questions has been constantly around 10-20 for the last 5 years. It shows the importance of the economy section in UPSC Prelims. To make things more clear, we have mentioned the number of economy questions asked in UPSC Prelims every year in the table below.
| Year | Economy PYQ UPSC Prelims – Number of Questions |
| 2022 | 18 |
| 2021 | 14 |
| 2020 | 14 |
| 2019 | 13 |
| 2018 | 13 |
| 2017 | 6 |
| 2016 | 20 |
| 2015 | 14 |
| 2014 | 10 |
| 2013 | 18 |
How to Prepare for UPSC Prelims Economy Questions?
The difficulty level of UPSC Prelims Economy Questions can vary from moderate to tough, and that’s why it is advised to have a solid preparation strategy to back up your preparation. Below we will be sharing some proven tips from the experts to ace the economy section in UPSC Prelims.
- Start with the basics, and follow the UPSC NCERT Books for Economics. NCERTs will help you build a strong foundation, and along with it, you can follow ‘Indian Economy by Ramesh Singh’ to understand the advanced topics.
- Focus on the core topics of economics. In the UPSC Prelims, Economy Questions are designed to test your basic knowledge of the subject.
- Build a habit of reading the newspaper daily so that you will stay updated with the economic developments of the country.
- Make notes, and revise them daily to have maximum retention of the concepts you have studied.
