Micro & Macroeconomics PYQs — 5 UPSC CSE Previous Year Questions

Question 1

Consider the following statements: Other things remaining unchanged, market demand for a good might increase if price of its substitute increases price of its complement increases the good is an inferior good and income of the consumers increases its price falls Which of the above statements are correct?

Accepted Answer

A. 1 and 4 only

Question 2

Despite being a high saving economy, capital formation may not result in significant increase in output due to

Accepted Answer

D. high capital-output ratio

Question 3

Supply of money remaining the same when there is an increase in demand for money, there will be

Accepted Answer

B. an increase in the rate of interest

Question 4

A consumer is said to be in equilibrium, if:

Accepted Answer

A. He is able to fulfil his need with a given level of income

Question 5

The supply-side economics lays greater emphasis on the point of view of:

Accepted Answer

A. Producer