Dr.
Shivin’s Targeted Exam Plan
For Prelims 2025
PREVIOUS YEAR QUESTIONS
ECONOMY
Prelims Questions:
Q1. Which one of the following is an example of a price ceiling? (UPSC CAPF 2019)
(a) Fares charged by Airlines in India
(b) Price printed on biscuit packets
(c) Minimum support price for cane growers
(d) Minimum wages fixed by state Governments
Q2. Which of the following factors signify monopolistic competition?
1. Differentiated products
2. Large number of buyers and sellers
3. Barriers to entry
4. Homogeneous products
Select the correct answer using the code given below: (UPSC CDS 2022 I)
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 3 and 4 only
(d) 2 and 4 only
Q3. The working of the price mechanism in a free-market economy refers to which one of
the following? (UPSC CDS 2019 II)
(a) The interplay of the forces of demand and supply
(b) Determination of the inflation rate in the economy
(c) Determination of the economy's propensity to consume
(d) Determination of the economy's full employment output
Q4. Which one of the following is an example of a price floor? (UPSC CDS 2019 II)]
(a) Minimum Support Price (MSP) for Jowar in India
(b) Subsidy given to farmers to buy fertilizers
(c) Price paid by people to buy goods from ration shops
(d) Maximum Retail Price (MRP) printed on the covers/packets of goods sold in India
Q5. Which of the following is not a 'Public Good'? (UPSC CDS 2016 I)
(a) Electricity
(b) National Defence
(c) Light House
(d) Public Parks
Q6. What is meant by 'Public Good"? (UPSC CDS 2015 II)
(a) A commodity produced by government
(b) A commodity whose benefits are indivisibly spread among the entire community
(c) A government scheme that benefits the poor households
(d) Any commodity that is very popular among general public
Q7. Which of the following statements is/are true?
1. If increase in demand and supply are of equal magnitude, the price will remain unchanged,
but the equilibrium quantity will increase.
2. If increase in demand is of greater magnitude than increase in supply, both equilibrium price
and equilibrium quantity will increase.
3. If increase in supply is of greater magnitude than increase in demand, equilibrium price will
fall but equilibrium quantity will increase.
Select the correct answer using the codes: (UPSC CDS 2014 II)
(a) Only 1
(b) 1 and 2
(c) 2 and 3
(d) 1, 2 and 3
Q8. A market in which there are large numbers of sellers of a particular product, but each
seller sells somewhat differentiated but dose products is termed as (UPSC CDS 2014 II)
(a) perfect competition
(b) monopoly
(c) monopolistic competition
(d) oligopoly
Q9. A market, in which there are a large number of firms, homogeneous product, infinite
elasticity of demand for an individual firm and no control over price by firms, is termed
as (UPSC CDS 2014 II)
(a) Oligopoly
(b) imperfect competition
(c) Monopolistic competition
(d) perfect competition
Q10. Which one of the following is a typical example of monopolistic competition? (UPSC
CDS 2014 II)
(a) Retail vegetable markets
(b) Market for soaps
(c) Indian Railways
(d) Labour market for software engineers
Q11. Match the following (UPSC CDS 2020 I)
List-I: (Market structure) List-II: (Characteristic)
A. Perfect competition 1. only one producer selling one
commodity
B. Monopoly 2. few producers selling similar or
almost similar products
C. Monopolistic competition 3. many producers selling differentiated
products
D. Oligopoly 4. many producers selling similar
products
Code ABCD：
(a) 4 3 1 2
(b) 4 1 3 2
(c) 2 1 3 4
(d) 2 3 1 4
Answers:
Q1. B
Q2. A
Q3. A
Q4. A
Q5. A
Q6. B
Q7. D
Q8. C
Q9. D
Q10. B
Q11. B
Mains Questions:
Q1. In a crucial domain like the public healthcare system the Indian State should play a
vital role to contain the adverse impact of marketisation of the system. Suggest some
measures through which the State can enhance the reach of public healthcare at the
grassroots level. (UPSC Mains, 2024- GS2)
Q2. Discuss the role of the Competition Commission of India in containing the abuse of
dominant position by the Multinational Corporations in India. Refer to the recent
decisions. (UPSC Mains, 2023- GS2)
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