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Preparation Strategy for Economics for UPSC CSE
UPSC CSE is the exam which everyone wants to clear. All the aspirants who are preparing for UPSC have only choice i.e. optional subject. So use your only choice smartly. So in this article, we are doing to discuss the strategy for all the candidates who are planning to choose economics as their optional subject in the main examination.
Economics is not popular like other subjects Public Administration or Geography. Our article will discuss the ways through which you can easily prepare for Economics.
What is Economics?
Economics is a social science concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations make choices on allocating resources to satisfy their wants and needs and try to determine how these groups should organize and coordinate efforts to achieve maximum output.
The economics can be further divided into two parts:
Microeconomics: Microeconomics is the study of economics at the individual or business level; how individual people or businesses behave given scarcity and government intervention. Microeconomics includes concepts such as supply and demand, price elasticity, quantity demanded, and quantity supplied.
Macroeconomics: Macroeconomics is the study of the performance and structure of the whole economy rather than individual markets. Macroeconomics includes concepts such as inflation, international trade, unemployment, and national consumption & production.
Benefits of Economics
As everything comes with a benefit so, choosing economics as your optional subject will give you some benefits.
- Economics is more scoring subject as compared to other subjects.
- This subject is a combination of a logical & rational section.
- The study material is a key to clear the exam. So, the study material for economics is easily available in the market or on the internet.
- Candidates who are coming from science background can also opt for economics without any hesitation. It does not require a prior knowledge to study economics. You just need a dedication to learn & understand a new subject.
- The biggest advantage is if you will study economics it will cover the 50-60% syllabus of General Studies III. So, in short, you are preparing for two subjects easily.
- You will have a bonus if you are good at using graphs. This will help you to score more in economics.
The important topics which you should focus on while you are preparing for economics are:
- Features of Indian Economy
- Basic Economic Indicators
- National income
- Foreign trade
- Money and banking
- International organizations
- Planning commission
- Public finance
Tips for Paper 1
- While you are appearing for paper 1, try to revise all the models at least 2-3 times. This will give you the more clarity towards the topic.
- Before explaining any topic or model, write some assumptions related to the topic. This will tell the examiner that you have a knowledge of that topic.
- Practice more & more diagrams, graphs & figures. Focus on every figures or fact, a model is incomplete without a figure.
- Focus on some frequently asked topics like Role of Central Bank or Instruments of Monetary Policy. Mostly the questions will be asked on this topic so, do not leave these topics.
- Revise the topics which you find more predictable. You can revise International Trade & Macroeconomics as questions from these topics are more predictable.
Tips for Paper 2
This is the second optional paper & it will be based on current affairs & related issues. So some necessary things which you should consider while you are preparing for economics are:
- Regularly follow government websites like NITI aayog websites for updated information. Also, check RBI speeches for relevant articles.
- As this paper is more based on current issues so, follow the survey for current issues & latest information.
- Make the notes regularly. Specifically, define each topic according to your comfortability.
- For current issues, you can follow a business newspaper. This will help you to read & understand some economical quotes.
The books which you should read for economics are discussed below. You can purchase the book just by clicking on them.
Indian Economy – Ramesh Singh.
India Year Book.
Indian Economy Since Independence – Uma Kapila.
Indian Economy – Datt and Sundaram.
Indian Economy – Sanjeev Varma.
Indian Economy – Mishra and Puri.
Indian Economy – Performance and Policies – Uma Kapila.
March of Indian Economy.
Previous Years Questions
- Derive the expansion path for a firm operating with the Cobb-Douglas Production Function.
- “Under monopolistic competition, a firm enjoys monopoly power without enjoying monopoly profit.”- Explain.
- Show that in the complete Keynesian model only fiscal policy is effective during a period of depression.
- Explain the difference between the assumptions on New Classical & the New Keynesian approaches in managing individual’s & markets.
- Show that full employment is the logical conclusion of the classical macro model.
- Would you advocate that the income of rich farmers should be taxed in India?
- “Subsidies are a source of inefficiency & corruption.” Do you agree with the statement in the Indian context?
- What caused the problem of non-performing assets of Indian commercial banks & what cures are being suggested to solve the problem?
- What were the considerations underlying the initiation of the railways and the road transport system in Indian in the 19th century?
- Write a brief note on the state of manufacturing in India in the 18th century & the subsequent of de-industrialization.
- “Pareto optimality conditions are necessary but not sufficient conditions for social welfare maximization.” Comment.
- Discuss briefly the circumstances were fiscal expansion leads to full crowding out.
- Explain how the equilibrium employment & real wage would change in a typically classical model if, in the event of an increase in the supply of labor, money wage become rigid?
- How Chamberlin uses planned sales curve to explain equilibrium of a firm & group when the entry of firms is permitted?
- Demonetization is expected to result in a fall in the ratio of currency to deposit. Using the money multiplier theory explain its possible impact on the supply of money.
- What is drain theory? How does it explain the backwardness of Indian in the 19th century?
- What were the broad considerations underlying the different types of land settlements in India during the colonial rule? Discuss.
If you have any doubt or need guidance you can comment below, our team will try to answer it.