Economics — UPSC Mains Optional PYQ (2023–2025)

(a) Show that when prices and income increase in the same proportion, there will be no change in quantity demanded for a commodity in Marshallian approach. [10M]

(b) Interpret the slope of the IS curve. Why is IS curve normally negatively sloped? [10M]

(c) What is classical dichotomy? Is it the same as neutrality of money? Explain. [10M]

(d) What are the major reasons for market failure? Explain the role of the government in this context. [10M]

(e) What are the determinants of velocity of money in Fisher’s equation? How does it differ from the Cambridge version of velocity of money? [10M]

(a) Distinguish between the Zamindari system and the Ryotwari system of land revenue under the British rule in India. [10M]

(b) What were the major impacts of ‘commercialisation of agriculture’ on Indian farmers during the pre-Independence India? Discuss. [10M]

(c) What were the economic consequences of the ‘Drain of Wealth’ theory as practised during the British rule in India? Analyse. [10M]

(d) Why did the British lead to the destruction of India’s traditional cotton industry? Discuss. [10M]

(e) Describe the phases of colonisation in British India. [10M]

(a) Define offer curve and explain its slope. [10M]

(b) What is J-curve effect? Explain it graphically. [10M]

(c) State Heckscher-Ohlin theory. Explain the Leontief Paradox in this context. [10M]

(d) Write down the implications of knife-edge problem in Harrod’s model of growth. [10M]

(e) Write down the major limitations of HDI developed by the UNDP. [10M]

(a) Discuss the components of food processing schemes introduced by the Government of India. [10M]

(b) Do you agree with the view that India’s Foreign Trade Policy, 2023–2028 will boost country’s trade surplus and generate employment? Give reasons. [10M]

(c) What are the structural shortcomings of the ‘Public Distribution System’ (PDS) in India? Explain. [10M]

(d) Justify the importance of ‘Disinvestment Policy’ of India. [10M]

(e) What are the implications of the Goods and Services Tax (GST) reforms for Indian federalism? Discuss. [10M]

(a) Differentiate between perceived demand curve and proportional demand curve in a monopolistic competitive market. Explain why the proportional demand curve is steeper than the perceived demand curve. [10M]

(b) Discuss critically the phenomenon of classical dichotomy. [10M]

(c) Show that ad valorem tax is preferable to specific sales tax from a firm's point of view in generating the same level of tax revenue. [10M]

(d) Examine the role of treasury bills in controlling money supply. [10M]

(e) Write down the major assumptions behind Neoclassical Loanable Funds Theory of Interest. [10M]

(a) Mention the items of ‘Economic Drain’ from India as conceived by Dadabhai Naoroji. [10M]

(b) Discuss why the railway system developed by the East India Company went against the Indian interest. [10M]

(c) Discuss why ‘Laissez Faire’ was not good for India during the pre-independence period. [10M]

(d) Describe why farmers derived little benefits from the commercialisation of agriculture in pre-independence India. [10M]

(e) What are the implications of the “PM-Kisan Samman Nidhi” scheme? [10M]

(a) Critically examine ‘per capita’ GDP as a crude indicator of development. [10M]

(b) Explain managed floating and sterilized interventions for exchange rate. [10M]

(c) Discuss how carbon trading is helpful in reducing environmental degradation. [10M]

(d) “Higher tariffs do not increase employment, they just redistribute the unemployed.” Do you agree with the statement? Explain. [10M]

(e) Explain how the equilibrium terms of trade are determined by using offer curves of the trading partners. [10M]

(a) Examine the alternative model of planning given by C. N. Vakil. [10M]

(b) Is service-led growth in India sustainable? Comment. [10M]

(c) What are the implications of depreciating Rupee on the Indian economy? [10M]

(d) Comment on FDI in the multi-brand retail sector in India. [10M]

(e) Is poverty ‘capability deprivation’? Discuss. [10M]

(a) Examine the role of price elasticity of demand in determining the price set by a discriminating monopolist. [10M]

(b) Explain the backward bending supply curve of labour as a choice between income and leisure. [10M]

(c) Explain the major differences between classical and Keynesian macroeconomics. [10M]

(d) What is meant by internal rate of return in the theory of investment? What is its importance in deciding whether to accept investment project ? [10M]

(e) Explain why it is considered difficult for open market operations to affect both the availability and cost of credit at the same time. [10M]

(a) Land system during the British rule was responsible for sustained poverty and stagnant growth in India. Comment. [10M]

(b) How did V. K. R. V. Rao improve upon the earlier national income estimates of India? [10M]

(c) Examine the impacts of Green Revolution on production and productivity in the agriculture sector. [10M]

(d) Deceleration and structural retrogression have been the key features of industrial sector in India during 1965–80. Give reasons. [10M]

(e) Examine the factors responsible for acceleration in the growth of national income in the decade of 1980s as against 1960s and 1970s. [10M]

(a) “Factor intensity reversal is incompatible with Heckscher-Ohlin model.” Examine this statement. [10M]

(b) Why depreciation of a currency is inflationary ? Explain. [10M]

(c) Can Kuznet’s hypothesis of an inverted U-curve be extended to analyse environmental degradation ? Explain. [10M]

(d) Explain how modified HDI is an improved measure of development over HDI. [10M]

(e) How renewable energy use can help attain environmental sustainability ? Explain. [10M]

(a) Distinguish between explicit and implicit subsidies. Explain the trends in explicit subsidies on irrigation and fertilizer in India during post-economic reform period. [10M]

(b) Examine the salient features of the Action Plan for Disinvestment, 2009. [10M]

(c) What do you mean by horizontal fiscal disequilibrium in a federal setup and how did the XIIth Finance Commission correct such imbalance in India? [10M]

(d) Show how Liquidity Adjustment Facility (LAF) in India emerged as an effective monetary policy instrument to control market fluctuations in the short run. [10M]

(e) Examine the effectiveness of universal basic income as an approach to poverty alleviation in India. [10M]