12 previous year UPSC Prelims questions on Indian Economy in the UPSC 1998 Prelims. Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 11–12 of 12 questions
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UPSC 1998Indian Economy · Important Concepts in Economy
Q11. A consumer is said to be in equilibrium, if:
Explanation
A consumer is said to be in equilibrium when they allocate their limited income in such a way that they maximize their total satisfaction (utility) from the goods and services they consume i.e. he is able to fulfil his need with a given level of income. This concept is based on the theory of consumer behavior in economics. Conditions for Consumer Equilibrium:
Budget Constraint: The consumer has a fixed level of income and faces given prices for goods and services. The total expenditure on goods and services cannot exceed the consumer’s income. Utility Maximization: The consumer allocates their income in such a way that the marginal utility per unit of money spent is equal across all goods and services. No Further Reallocation: The consumer cannot increase their total utility by reallocating their income between goods and services.
UPSC 1998Indian Economy · Important Concepts in Economy
Q12. Supply-side economics lays greater emphasis on the point of view of:
Explanation
Supply-side economics is an economic theory that focuses on boosting economic growth by increasing the supply of goods and services. It emphasizes the role of producers (businesses and entrepreneurs) in driving economic activity. The key principles of supply-side economics include:
Tax Cuts: Reducing taxes on businesses and individuals to incentivize production, investment, and work. Deregulation: Reducing government regulations to lower the cost of production and encourage entrepreneurship. Incentives for Investment: Providing incentives for businesses to invest in capital, technology, and innovation. Increased Productivity: Focusing on policies that enhance productivity and efficiency in the economy. Supply-side economics emphasizes the producer’s perspective because it believes that by enabling producers to operate more efficiently and profitably, the overall economy will grow. This growth, in turn, benefits consumers through increased employment, lower prices, and higher quality goods and services.
Answer key for these questions
Q
UPSC year
Correct answer
11
1998
(a) he is able to fulfil his need with a given level of income
12
1998
(a) producer
Frequently asked questions
How many previous year UPSC questions are there on Indian Economy?
This page covers 12 previous year UPSC Prelims GS Paper-I questions on Indian Economy in the UPSC 1998 Prelims, asked from 1996 to 2025. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Indian Economy?
Questions on Indian Economy in the UPSC 1998 Prelims are available for 30 years, from 1996 to 2025. Use the Year filter to practise a single paper.
