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UPSC Economics — Previous Year Questions

Every question from Economics papers in UPSC Civil Services Mains (2021–2026), organised by year. 96 questions in total, each with directive-word analysis, model answer points, and a full evaluation rubric.

96Questions
6Years covered

2026 Mains

16 questions · 800 marks

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Paper I 8 Qs · 400 marksPaper II 8 Qs · 400 marks
All 16 questions from 2026

Paper I

  1. Q1 (a) According to Michal Kalecki, how the degree of monopoly and the level of investment interact to determine the… 50 marks
  2. Q2 (a) Under what conditions, does a market reach equilibrium ? Analyse the differences in stability between Marshallian… 50 marks
  3. Q3 (a) The following values for an economy are given : C = 0.8 (1 – t)Y t = 0.25 I = 900 – 50r, G = 800, L = 0.25Y – 62.5r… 50 marks
  4. Q4 (a) Explain the instruments through which the government of any country tries to successfully carry out its three major… 50 marks
  5. Q5 (a) “Import tariffs typically result in a net welfare loss for a country”. Do you agree ? Justify your answer by… 50 marks
  6. Q6 (a) Discuss the major differences between Old and New international trade theories. (20 marks) (b) Explain the effect… 50 marks
  7. Q7 (a) Analyse the role of human capital as a driver of economic development in developing countries. How can education… 50 marks
  8. Q8 (a) “Earth provides enough to satisfy every man’s needs, but not every man’s greed”. Analyse this statement in the… 50 marks

Paper II

  1. Q1 (a) Critically examine the ‘drain theory’ as propounded by Dadabhai Naoroji. How did it explain the root cause of… 50 marks
  2. Q2 (a) Evaluate the success of land reforms in post-Independent India. Why was the success limited in certain States while… 50 marks
  3. Q3 (a) Trace the trajectory of India’s industrial policy from the Nehruvian model of ‘Mahalanobis Strategy’ to the… 50 marks
  4. Q4 (a) Trace the evolution of the debate between the public and private sectors in India's industrial development from the… 50 marks
  5. Q5 (a) Analyze the impact of the TRIPS Agreement on the pricing and availability of generic drugs in the Indian… 50 marks
  6. Q6 (a) Critically examine the impact of the New Economic Policy on the Indian corporate sector. Discuss its effects on… 50 marks
  7. Q7 (a) “Economic development without employment generation is meaningless.” Give your views. Critically analyze the… 50 marks
  8. Q8 (a) Explain the Intellectual Property Rights (IPR) regime under the WTO. Discuss the specific implications of TRIPS and… 50 marks

2025 Mains

16 questions · 800 marks

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Paper I 8 Qs · 400 marksPaper II 8 Qs · 400 marks
All 16 questions from 2025

Paper I

  1. Q1 (a) Show that when prices and income increase in the same proportion, there will be no change in quantity demanded for… 50 marks
  2. Q2 (a) Derive Marshallian demand curve for an inferior good in a two-commodity framework by using income and substitution… 50 marks
  3. Q3 (a) Define liquidity trap. Show that fiscal policy is fully effective in the horizontal part while the monetary policy… 50 marks
  4. Q4 (a) (i) Explain the effects of public spending on national income, if it is financed through government borrowings… 50 marks
  5. Q5 (a) Define offer curve and explain its slope. 10 (b) What is J-curve effect ? Explain it graphically. 10 (c) State… 50 marks
  6. Q6 (a) Explain the price effect, protective effect, consumption effect, revenue effect and distributive effect of tariff… 50 marks
  7. Q7 (a) Analyse critically the role of human capital and Research and Development (R&D) expenditure on economic growth in… 50 marks
  8. Q8 (a) Explain the role of World Trade Organization (WTO) in the present context. Discuss the merits and demerits of TRIMs… 50 marks

Paper II

  1. Q1 (a) Distinguish between the Zamindari system and the Ryotwari system of land revenue under the British rule in India… 50 marks
  2. Q2 (a) Is land reform necessary to improve agricultural productivity in India? Discuss. (20 marks) (b) Critically analyse… 50 marks
  3. Q3 (a) Examine the objectives and components of the Green Revolution in India. (20 marks) (b) Why does inter-State… 50 marks
  4. Q4 (a) What are the methods used in measuring poverty and inequality in India? Analyse. (20 marks) (b) How have rural and… 50 marks
  5. Q5 (a) Discuss the components of food processing schemes introduced by the Government of India. (10 marks) (b) Do you… 50 marks
  6. Q6 (a) What are the causes of industrial backwardness in India? Critically evaluate the role of the New Industrial Policy… 50 marks
  7. Q7 (a) What is the sectoral composition of India's national income? Mention the most important source of national income… 50 marks
  8. Q8 (a) How do the current Finance Commission's recommendations align with the Government's Fiscal Consolidation goals?… 50 marks

2024 Mains

16 questions · 800 marks

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Paper I 8 Qs · 400 marksPaper II 8 Qs · 400 marks
All 16 questions from 2024

Paper I

  1. Q1 (a) Differentiate between perceived demand curve and proportional demand curve in a monopolistic competitive market… 50 marks
  2. Q2 (a) Derive Pareto optimality conditions in production in a two commodities-two factors-two producers framework. Show… 50 marks
  3. Q3 (a) Explain the concept of underemployment equilibrium with graphical illustration. Why full employment cannot be… 50 marks
  4. Q4 (a) Describe the mechanism of credit creation by commercial banks and its implications on multiplier effect. Analyse… 50 marks
  5. Q5 (a) Critically examine 'per capita' GDP as a crude indicator of development. (10 marks) (b) Explain managed floating… 50 marks
  6. Q6 (a) Discuss the elasticity approach and absorption approach for adjustments in balance of payments. (20 marks) (b) By… 50 marks
  7. Q7 (a) Explain how the structural transformation, in the economy, takes place with surplus labour as per Lewis theory of… 50 marks
  8. Q8 (a) Describe the major components used in Human Development Index (HDI) by the United Nations Development Programme… 50 marks

Paper II

  1. Q1 (a) Mention the items of 'Economic Drain' from India as conceived by Dadabhai Naoroji. (10 marks) (b) Discuss why the… 50 marks
  2. Q2 (a) What schemes are launched by the Government to deal with the problem of unemployment in India ? Why the problem… 50 marks
  3. Q3 (a) Highlight the role of MSMEs in Indian Economy. What steps have been taken by the Government to enhance its… 50 marks
  4. Q4 (a) Discuss the changes made by the Government of India in the fiscal policy since liberalisation. How far these… 50 marks
  5. Q5 (a) Examine the alternative model of planning given by C. N. Vakil. (10 marks) (b) Is service-led growth in India… 50 marks
  6. Q6 (a) Evaluate the policy of Government of India with regard to foreign investment in the country. Do you feel that there… 50 marks
  7. Q7 (a) Distinguish between fiscal federalism, fiscal consolidation and cooperative federalism. Comment on the outcome of… 50 marks
  8. Q8 (a) What are the main objectives of monetary policy adopted by the R.B.I. during last 5 years ? Discuss the steps taken… 50 marks

2023 Mains

16 questions · 800 marks

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Paper I 8 Qs · 400 marksPaper II 8 Qs · 400 marks
All 16 questions from 2023

Paper I

  1. Q1 (a) Examine the role of price elasticity of demand in determining the price set by a discriminating monopolist. (10… 50 marks
  2. Q2 (a) Explain the Cournot model of duopoly using reaction functions and interpret it as a Nash equilibrium. (20 marks)… 50 marks
  3. Q3 (a) "Under rational expectation hypothesis, systematic monetary policy is ineffective." Explain the above statement… 50 marks
  4. Q4 (a) Explain the concept of "sterilization" in the context of monetary approach to balance of payments. (20 marks) (b)… 50 marks
  5. Q5 (a) "Factor intensity reversal is incompatible with Heckscher-Ohlin model." Examine this statement. (10 marks) (b) Why… 50 marks
  6. Q6 (a) Consider the market for good X for Country 1 and Country 2. The supply and demand functions for Country 1 are given… 50 marks
  7. Q7 (a) Human capital and components of research and development are determining factors of economic growth. Explain using… 50 marks
  8. Q8 (a) How important is rent from extraction of renewable and non-renewable resources to distinguish between Net Domestic… 50 marks

Paper II

  1. Q1 (a) Land system during the British rule was responsible for sustained poverty and stagnant growth in India. Comment… 50 marks
  2. Q2 (a) Explain the main features of money and credit policies in India during the pre-Independence era. (20 marks) (b)… 50 marks
  3. Q3 (a) Discuss the role of D. R. Gadgil in economic planning and development in India. (20 marks) (b) Explain the role of… 50 marks
  4. Q4 (a) Explain the main causes of inequality in income distribution in India and examine how it affects welfare of the… 50 marks
  5. Q5 (a) Distinguish between explicit and implicit subsidies. Explain the trends in explicit subsidies on irrigation and… 50 marks
  6. Q6 (a) Discuss the characteristic features of Agreement on Agriculture (AOA) under Uruguay Round of GATT and examine its… 50 marks
  7. Q7 (a) Briefly explain the growth and structure of India's foreign trade in the post-liberalization period. (20 marks) (b)… 50 marks
  8. Q8 (a) State the main provisions of the 73rd and 74th Constitutional Amendment Act, 1992. Do you agree that this Act has… 50 marks

2022 Mains

16 questions · 800 marks

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Paper I 8 Qs · 400 marksPaper II 8 Qs · 400 marks
All 16 questions from 2022

Paper I

  1. Q1 (a) Explain briefly Chamberlin's concept of excess capacity in monopolistic competition. 10 (b) Discuss the concept of… 50 marks
  2. Q2 (a) Consider a duopoly market, P = 100 – 2Q, MC = 10 and Q = q₁ + q₂ where P : Market price Q : Total output or the sum… 50 marks
  3. Q3 (a) IS curve is the locus of equilibrium points in the commodity market. What do the points above and below the IS… 50 marks
  4. Q4 (a) State the canons of taxation. Do you think that direct taxes are less burdensome than indirect taxes in generating… 50 marks
  5. Q5 (a) Stating major assumptions in the Kaldor model of distribution, establish that share of profits in national income… 50 marks
  6. Q6 (a) What do you mean by the warranted rate of growth ? Explain the knife edge instability problem in Harrod's growth… 50 marks
  7. Q7 (a) Examine whether in Ricardian model, the theory of comparative advantage actually becomes a doctrine of comparative… 50 marks
  8. Q8 (a) State the functions of United Nations Conference on Trade and Development (UNCTAD). Do you think that UNCTAD has… 50 marks

Paper II

  1. Q1 (a) Outline the factors that caused decline of handicrafts during British rule in India. (10 marks) (b) Discuss the… 50 marks
  2. Q2 (a) Highlight the major features of National Income trend and its sectoral composition during the last five decades… 50 marks
  3. Q3 (a) Do you think that Multi Dimensional Poverty Index (MPI) is a better measure of poverty? Give reasons in support of… 50 marks
  4. Q4 (a) Do you subscribe to the view that private sector is a key driver to economic development of India? Give reasons in… 50 marks
  5. Q5 (a) Do you think that Indian development planning is a transition from centralised planning to indicative planning and… 50 marks
  6. Q6 (a) What is the objective of exchange rate management? Do you think that the present regime of exchange rate management… 50 marks
  7. Q7 (a) Critically examine the various poverty alleviation programmes in India since 1970's. (20 marks) (b) Differentiate… 50 marks
  8. Q8 (a) What are the various methods of privatisation? Point out the methods adopted by the government for disinvestment in… 50 marks

2021 Mains

16 questions · 800 marks

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Paper I 8 Qs · 400 marksPaper II 8 Qs · 400 marks
All 16 questions from 2021

Paper I

  1. Q1 (a) Compare and contrast Marshallian and Walrasian approaches of the stability in equilibrium. (10 marks) (b) Using… 50 marks
  2. Q2 (a) Explain the differences between Cournot model of duopoly with similar product and differentiated product. (15… 50 marks
  3. Q3 (a) Show that differences in underlying expectation lead to differences in Keynesian and classical aggregate supply… 50 marks
  4. Q4 (a) Derive short-run aggregate supply curve following Lucas, when expectations are not realised, assuming that labour… 50 marks
  5. Q5 (a) Explain Rosenstein-Rodan's view that economic underdevelopment is the outcome of a massive coordination failure… 50 marks
  6. Q6 (a) Evaluate Kuznets' inverted U shaped curve hypothesis of income distribution. Does it hold good for less developed… 50 marks
  7. Q7 (a) Discuss the theory of acquired advantage in international trade using suitable examples. (15 marks) (b) Do you… 50 marks
  8. Q8 (a) If the government raises taxes on labour income and interest income, explain how potential GDP and economic growth… 50 marks

Paper II

  1. Q1 (a) Examine the factors that facilitated commercialisation of Indian agriculture during the British rule. (10 marks)… 50 marks
  2. Q2 (a) Compare the main features of development of jute and cotton textile industry in India during the British period… 50 marks
  3. Q3 (a) Do you think that effective land reforms are necessary but not sufficient conditions for raising agricultural… 50 marks
  4. Q4 (a) Do you think that India experienced a major break in GDP growth and its sectoral composition during the 1980s? Give… 50 marks
  5. Q5 (a) Examine the arguments to explain the theory of 'economic drain' from India in the second half of the 19th century… 50 marks
  6. Q6 (a) What are the major components of public expenditure on agriculture in India? Would you recommend any changes in the… 50 marks
  7. Q7 (a) Analyse the sectoral inflows of FDI in India during the post-liberalisation period. (20 marks) (b) Critically… 50 marks
  8. Q8 (a) Define capital account convertibility. Examine Tarapore Committee (I and II) recommendations on capital account… 50 marks

How Economics answers are marked

The shape the examiner expects, what earns the marks and the traps that lose them: the same card our rubrics for this subject are written from.

Answer skeleton

  1. Define
  2. Model and diagram
  3. Derivation
  4. Policy implication

What earns the marks

  • Draw the diagram and label both axes
  • Derive rather than assert
  • State assumptions before the result
  • Paper II: Indian data and current policy

What earns the extra mark

  • Latest Survey or Budget figure
  • Named economist

Traps that cost marks

  • Verbal answers where a model is expected
  • Unstated assumptions
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