List of top Economics Questions

“British colonial rule in India executed a systematic economic exploitation that involved the extraction of India’s resources and wealth to benefit Britain.” Justify the given statement with valid explanation.

“The disinvestment policy of India under the 1991 reforms involved selling of part of the government’s stakes in Public Sector Undertakings (PSUs).”
Explain the rationale behind the decision undertaken by the government.

(a) (i) Distinguish between human capital and physical capital.
(ii) Define Sustainable Development.
OR 
(b) 
(i) Describe briefly the importance of micro-credit programmes in Rural India.
(ii) State any one strategy involved in attaining sustainable development in India.

(a) (i) Import substitution policy, if not applied carefully, can be a double-edged sword for any economy. Do you agree with the given statement? Justify your answer with valid arguments.
(ii) State how multilateral trade is different from bilateral trade.
OR 
(b) 
(i) Discuss briefly, causes and consequences of the tax reforms initiated during economic reforms in India.
(ii) Give one example each of a Navratna and a Maharatna company in the public sector in India.

Read the following text carefully and compare the impact of subsequent reforms initiated by China and India.
China underwent substantial policy changes to stimulate their economy. China's economic growth was rapid in the late 1970s across various sectors. However, India had to wait much longer for its economic transformation. India's significant economic progress was only realised after the economic reforms of 1991, which were implemented out of compulsion.
On the basis of given text and common understanding, compare the impact of subsequent reforms initiated by China and India.

Using the following data, analyse the sectoral contribution of India and Pakistan towards Gross Value Added (GVA).

SectorContribution to GVADistribution of Workforce
IndiaChinaPakistanIndiaChinaPakistan
Agriculture16724432641
Industry304119252824
Services545257324635
Total100100100100100100
State and elaborate whether the following statements are true/false, with valid arguments: (a) The Indian economy has shown satisfactory progress towards formalization of the workforce in the recent years.
(b) In the Indian rural landscape, agricultural diversification has emerged as a reasonable alternative to fill up the gaps in income.
Read the following statements carefully :
Statement 1 : The purchase of food grains, made by the government on the Minimum Support Price (MSP), is maintained as buffer stock.
Statement 2 : Minimum Support Price (MSP) safeguards the farmers against any sharp fall in farm product prices.
In the light of the given statements, choose the correct option from the following :

Study the following image carefully :

From the following, choose the correct option which indicates similarities in the policies of India and Pakistan, in the post-1947 period:

Read the following text carefully:
The Labour Force Participation Rate (LFPR) measures the percentage of the population either employed or actively seeking employment in a nation. In India, the labour force grew by 99·2 million persons between 2000 – 2019. The labour force grew from 396·3 million to 495·5 million.
During 2012 – 2019, the labour force grew without a matching increase in employment, leading to higher unemployment.
The gender disparity in India’s labour market is notable with women’s LFPR at 32·8\% in 2022, significantly lower than men’s LFPR at 77·2\%. This is a major reason for India’s overall low LFPR, which is lower than the global average of 47·3\%.
During 2000 – 2019, rural LFPR declined by 14·1\%, compared to a 3·5\% decline in urban areas. This trend reversed between 2019 – 2022, with rural LFPR increasing by 6\% (especially among rural women) and urban LFPR by 2·1\%. These shifts suggest that fluctuations occur in women’s labour market participation, particularly in rural areas.
This significantly affected the overall LFPR. Women join the workforce during economic hardships and move out when conditions improve.
On the basis of the given text and common understanding, answer the following questions:
(a) Define unemployment.
(b) Write the meaning of Labour Force Participation Rate (LFPR).
(c) Comment upon the gender disparities in rural and urban Labour Force Participation Rate (LFPR) during 2000 – 2019.
Identify, which of the following statements is incorrect about the Rural Banking system in India. (Choose the correct option)
Read the following statements – Assertion (A) and Reason (R). Choose the correct alternative from the options given below :
Assertion (A) : Under the financial sector reforms introduced in 1991, foreign investment limit in banks was raised up to around 74%.
Reason (R) : Foreign Institutional Investors (FIIs) were allowed to invest in Indian financial markets, post-1991.
“Suppose an imaginary economy is experiencing a situation of rise in Real Gross Domestic Product (GDP), without any corresponding adequate rise in the employment opportunities in the economy.” In economic parlance, such a situation is termed as ..................... growth.
(Choose the correct option to fill in the blank)
Identify, which of the following statements is incorrect about the functions of the environment. (Choose the correct option)
In the post-independence era, the policy makers of India emphasised on ‘self-reliance’ for the first ............. Five Year Plans.
(Choose the correct option to fill in the blank)
Read the following statements carefully :
Statement 1 : The British policies led to huge employment generation in the secondary and tertiary sectors of the Indian Economy.
Statement 2 : The real motive of the colonial government’s infrastructural development was to benefit the interests of India.
In the light of the given statements, choose the correct alternative from the following :
State the meaning and components of M1 measure of money supply.
State the formula to compute Credit Multiplier.
"In a country, routine economic operations rely on a stable medium, to facilitate transactions for maintaining smooth economic activities." Discuss briefly the indicated function of money.
Production of diverse varieties of crops, rather than one specialised crop, is known as diversification of ...................
"All consumption goods are durable in nature."
Defend or refute the given statement with a valid argument.

On the basis of the given data, estimate the value of National Income (NNPFC):

S.No.ItemsAmount (in ₹ Crore)
(i)Household Consumption Expenditure1,800
(ii)Gross Business Fixed Capital Formation1,150
(iii)Gross Residential Construction Expenditure1,020
(iv)Government Final Consumption Expenditure2,170
(v)Excess of Imports over Exports720
(vi)Inventory Investments540
(vii)Gross Public Investments1,300
(viii)Net Indirect Taxes240
(ix)Net Factor Income from Abroad(-) 250
(x)Consumption of Fixed Capital440
Read the following statements – Assertion (A) and Reason (R). Choose the correct option from the options given below :
Assertion (A) : People spend to acquire information related to labour and other markets (like, education and health).
Reason (R) : Expenditure on information is necessary for efficient utilisation of the human capital stock.
Suppose, there are only three firms in a hypothetical economy, viz. A, B and C. During a given period of time, the following transactions were undertaken by them: \[ \text{(I) Firm A sold goods worth ₹2,000 to Firm B and ₹1,200 to Firm C.} \\ \text{(II) Firm B sold goods worth ₹1,100 to Firm A and ₹3,500 to Firm C.} \\ \text{(III) Firm C sold to households for final consumption, goods worth ₹5,700.} \] Estimate the value of Net Domestic Product at Market Price (NDPMP), assuming depreciation to be ₹120.

"The Indian economy has witnessed a sharp turnaround during 2023 – 24 with Foreign Direct Investments (FDI) inflows of US $ 70.9 Bn and net Foreign Portfolio Investments (FPI) inflows of US 32.4 Bn."In which account of Balance of Payments will the given variables be entered and why?