Economics UPSC PYQ 2023

What do you mean by horizontal fiscal disequilibrium in a federal setup and how did the XIIth Finance Commission correct such imbalance in India?

In the IS-LM framework, the effectiveness of monetary and fiscal policies depend on the interest elasticity of investment. Explain.

Answer the following questions in about 150 words each : <!--qid:MAINS_2023_Economics-I_Q5-->

How important is rent from extraction of renewable and non-renewable resources to distinguish between Net Domestic Product (NDP) and Environmentally adjusted Domestic Product (EDP). Will the distinction be valid if we have an economy with only renewable resources and the economy reaches the point of maximum sustainable yield?

In the context of finance, the term ‘beta’ refers to

Answer the following questions in about 150 words each : <!--qid:MAINS_2023_Economics-I_Q1-->

Critically examine the contribution of Special Economic Zones (SEZs) in promoting foreign trade in India.

What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade Organization (WTO) in relation to agricultural subsidies. <!--qid:MAINS_2023_GS-III_Q14-->

Examine the effectiveness of universal basic income as an approach to poverty alleviation in India.

State the key features of the Targeted Public Distribution System (TPDS) in India. Do you believe that TPDS has been successful in achieving its objectives? Justify your answer.

Consider the investments in the following assets:1. Brand recognition2. Inventory3. Intellectual property4. Mailing list of clientsHow many of the above are considered intangible investments?

Why depreciation of a currency is inflationary ? Explain.

Tax burden is distributed between buyers and sellers in the ratio of elasticities of demand and supply. Explain.

Examine the factors responsible for acceleration in the growth of national income in the decade of 1980s as against 1960s and 1970s.

"Balanced and unbalanced growth strategies are not substitutes but complementary to each other." Discuss.

Explain the concept of ceiling on agricultural landholding in India. Examine its rationality with respect to equity and efficiency.

With reference to coal-based thermal power plants in India, consider the following statements : 1. None of them uses seawater. 2. None of them is set up in water-stressed district. 3. None of them is privately owned. How many of the above statements are correct?

Explain the development of cotton industry in India during pre-Independence era. Also point out its growth constraints.

Examine the role of price elasticity of demand in determining the price set by a discriminating monopolist.

Explain the changes in wage structure in India in the post-economic reform period.

Describe a model of oligopoly that explains price stickiness.

Consider the following statements in the context of interventions being undertaken under Anaemia Mukt Bharat Strategy : 1. It provides prophylactic calcium supplementation for pre-school children, adolescents and pregnant women. 2. It runs a campaign for delayed cord clamping at the time of child-birth. 3. It provides for periodic deworming to children and adolescents. 4. It addresses non-nutritional causes of anaemia in endemic pockets with special focus on malaria, hemoglobinopathies and fluorosis. How many of the statements given above are correct?

Human capital and components of research and development are determining factors of economic growth. Explain using appropriate endogenous growth model.

Explain the Cournot model of duopoly using reaction functions and interpret it as a Nash equilibrium.

Consider the market for good X for Country 1 and Country 2. The supply and demand functions for Country 1 are given as P = Q + 70 and P = 170 - Q, while that of Country 2 are given as P = 10 + Q and P = 110 - Q. Assume that there are two countries in the world and trade is balanced. Free trade price is stabilized in between autarky prices of both the countries. Based on the above information, answer the following questions : (i) From the free trade price and zero transportation cost, if the importing country imposes an import quota of 50 units, determine the quantity of good X produced and consumed. Calculate the consumer and producer surplus and protection cost due to import quota. (ii) From the free trade price, assume that the importing country is small and consider an import tariff of Rs. 10 per unit on good X. Calculate the impact on consumer surplus, producer surplus and government revenue. Does this policy increase national welfare ?

Consider the investments in the following assets: 1. Brand recognition 2. Inventory 3. Intellectual property 4. Mailing list of clients How many of the above are considered intangible investments?

"Perfect competition is incompatible with increasing returns to scale." Examine the statement.

Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?

Consider the following statements : Statement-I : India, despite having uranium deposits, depends on coal for most of its electricity production. Statement-II : Uranium, enriched to the extent of at least 60%, is required for the production of electricity. Which one of the following is correct in respect of the above statements?

Describe the pattern and trends in national income in India during the pre-economic reform period.

Consider the following statements :Statement-I : In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.Statement-II : Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.Which one of the following is correct in respect of the above statements?

Explain the backward bending supply curve of labour as a choice between income and leisure.

Dam failures are always catastrophic, especially on the downstream side, resulting in a colossal loss of life and property. Analyze the various causes of dam failures. Give two examples of large dam failures. <!--qid:MAINS_2023_GS-III_Q7-->

"Income inequality is not a cause of concern as long as per capita income is rising." Critically examine this statement.

The adoption of electric vehicles is rapidly growing worldwide. How do electric vehicles contribute to reducing carbon emissions and what are the key benefits they offer compared to traditional combustion engine vehicles? <!--qid:MAINS_2023_GS-III_Q15-->

With reference to Central Bank digital currencies, consider the following statements: 1. It is possible to make payments in a digital currency without using the US dollar or SWIFT system. 2. A digital currency can be distributed with a condition programmed into it such as a time- frame for spending it. Which of the statements given above is/are correct?

Discuss the role of D. R. Gadgil in economic planning and development in India.

Consider the following markets : 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the above are included in capital markets?

Consider the following statements: Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable. Statement-II: InvITs are recognized as borrowers under the 'Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002'. Which one of the following is correct in respect of the above statements?

What is meant by internal rate of return in the theory of investment ? What is its importance in deciding whether to accept investment project ?

Explain the concept of steady-state in the context of Solow model.

Show how Liquidity Adjustment Facility (LAF) in India emerged as an effective monetary policy instrument to control market fluctuations in the short run.

Examine the salient features of the Action Plan for Disinvestment, 2009.

What are the factors contributing towards shift in sectoral composition in Gross National Product (GNP) in India during the pre-economic reform period? Discuss.

Explain the changes in cropping pattern in India in the context of changes in consumption pattern and marketing conditions. <!--qid:MAINS_2023_GS-III_Q13-->

Deceleration and structural retrogression have been the key features of industrial sector in India during 1965-80. Give reasons.

Explain the main features of money and credit policies in India during the pre-Independence era.

State the objectives and measures of land reforms in India. Discuss how land ceiling policy on landholding can be considered as an effective reform under economic criteria. <!--qid:MAINS_2023_GS-III_Q4-->

What are the internal security challenges being faced by India? Give out the role of Central Intelligence and Investigative Agencies tasked to counter such threats. <!--qid:MAINS_2023_GS-III_Q19-->

Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard. <!--qid:MAINS_2023_GS-III_Q1-->

Consider the following statements : Statement-I : India accounts for 3.2% of global export of goods. Statement-II : Many local companies and some foreign companies operating in India, have taken advantage of India's 'Production-linked Incentive' scheme. Which one of the following is correct in respect of the above statements?

Explain how modified HDI is an improved measure of development over HDI.

Explain the role of public sector in the Indian economy. Also point out its main problems faced during the period between 1970 to 1980.

"Under rational expectation hypothesis, systematic monetary policy is ineffective." Explain the above statement using a suitable model.

Answer the following questions in about 150 words each: <!--qid:MAINS_2023_Economics-II_Q1-->

Consider the following statements : The 'Stability and Growth Pact' of the European Union is a treaty that 1. limits the levels of the budgetary deficit of the countries of the European Union 2. makes the countries of the European Union to share their infrastructure facilities 3. enables the countries of the European Union to share their technologies How many of the above statements are correct?

Discuss Friedman's restatement of Quantity Theory of Money. Under what conditions, it reduces to classical Quantity Theory of Money ? Explain.

Explain why it is considered difficult for open market operations to affect both the availability and cost of credit at the same time.

Consider the following statements with reference to India : 1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between 15 crore and 25 crore. 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Which of the statements given above is/are correct?

Distinguish between explicit and implicit subsidies. Explain the trends in explicit subsidies on irrigation and fertilizer in India during post-economic reform period.

With reference to Central Bank digital currencies, consider the following statements: 1. It is possible to make payments in a digital currency without using US dollar or SWIFT system. 2. A digital currency can be distributed with a condition programmed into it such as a time-frame for spending it. Which of the statements given above is/are correct?

How does e-Technology help farmers in production and marketing of agricultural produce? Explain it. <!--qid:MAINS_2023_GS-III_Q3-->

Explain the main causes of inequality in income distribution in India and examine how it affects welfare of the society.

Consider the following statements with reference to India:1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore.2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.Which of the statements given above is/are correct?

Explain the concept of "sterilization" in the context of monetary approach to balance of payments.

What is the golden rule of capital accumulation ? Explain it using a growth model.

What is the status of digitalization in the Indian economy? Examine the problems faced in this regard and suggest improvements. <!--qid:MAINS_2023_GS-III_Q2-->

The Intergovernmental Panel on Climate Change (IPCC) has predicted a global sea level rise of about one metre by AD 2100. What would be its impact in India and the other countries in the Indian Ocean region? <!--qid:MAINS_2023_GS-III_Q18-->

Discuss the characteristic features of Agreement on Agriculture (AOA) under Uruguay Round of GATT and examine its impact on Indian agriculture.

Briefly explain the growth and structure of India's foreign trade in the post-liberalization period.

How renewable energy use can help attain environmental sustainability ? Explain.

Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. <!--qid:MAINS_2023_GS-III_Q11-->

Comment on the National Wetland Conservation Programme initiated by the Government of India and name a few India’s wetlands of international importance included in the Ramsar Sites. <!--qid:MAINS_2023_GS-III_Q17-->

State the main provisions of the 73rd and 74th Constitutional Amendment Act, 1992. Do you agree that this Act has been successful in promoting the democratic decentralization in India? Justify your answer.

"A continuous process of innovation and invention would give rise to trade even between countries with similar factor endowments and tastes." Examine the statement.

Examine the significance of external economies and product variety in the context of international trade theory.

Explain the major differences between classical and Keynesian macroeconomics.

State the salient features of the Foreign Exchange Management Act (FEMA), 1999 in India. To what extent it deviates from the Foreign Exchange Regulation Act (FERA), 1979?

Examine the impacts of Green Revolution on production and productivity in the agriculture sector.

How important is speculative demand for money in achieving unemployment equilibrium in the Keynesian model ? Discuss.

"Factor intensity reversal is incompatible with Heckscher-Ohlin model." Examine this statement.

Consider the following statements : Statement-I : Switzerland is one of the leading exporters of gold in terms of value. Statement-II : Switzerland has the second largest gold reserves in the world. Which one of the following is correct in respect of the above statements?

Consider the following statements: 1. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived. 2. In an SHG, all members of a group take responsibility for a loan that an individual member takes. 3. The Regional Rural Banks and Scheduled Commercial Banks support SHGs. How many of the above statements are correct?

Answer the following questions in about 150 words each: <!--qid:MAINS_2023_Economics-II_Q5-->

Consider the following markets :1. Government Bond Market2. Call Money Market3. Treasury Bill Market4. Stock MarketHow many of the above are included in capital markets?

Land system during the British rule was responsible for sustained poverty and stagnant growth in India. Comment.

Discuss several ways in which microorganisms can help in meeting the current fuel shortage. <!--qid:MAINS_2023_GS-III_Q6-->

Can Kuznet's hypothesis of an inverted U-curve be extended to analyse environmental degradation ? Explain.

Explain the reasons for sluggish growth in employment in India during the post-economic reform period.

Discuss the salient features of India's New Foreign Trade Policy, 2023.

Consider the following statements:Statement-I: India accounts for 3.2% of global export of goodsStatement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme.Which one of the following is correct in respect of the above statements?

Explain the main reasons for deceleration in agricultural growth in India during the post-economic reform period.

Give out the major sources of terror funding in India and the efforts being made to curtail these sources. In the light of this, also discuss the aim and objective of the ‘No Money for Terror (NMFT)’ Conference recently held at New Delhi in November 2022. <!--qid:MAINS_2023_GS-III_Q20-->

Distinguish between ‘care economy’ and ‘monetized economy’. How can care economy be brought into monetized economy through women empowerment? <!--qid:MAINS_2023_GS-III_Q12-->