List of top Economics Questions

GDP and Welfare
GDP is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. In order to compare the GDP figures and other macroeconomic variables of different countries or to compare the GDP figures of the same country at different points of time, we take the help of real GDP instead of relying on current market prices. The ratio of nominal GDP to real GDP gives us an idea of how prices have moved from the base year to the current year. The Consumer Price Index (CPI) and Wholesale Price Index (WPI) are the other important ways to measure change of prices in an economy.

GDP gets distributed among the people as incomes and may treat higher level of GDP of a country as an index of greater well-being of the people of that country. But it may be incorrect to treat GDP as an index of the welfare of the country based on three reasons. Firstly, the distribution of GDP is not uniform, secondly, non-monetary exchanges are not accounted as part of economic activity and lastly, GDP does not take into account externalities.

Suppose India only produces wheat. In the year 2020, India produced 200 kg of wheat at a price of Rs 20 per kg of wheat and in the year 2021, it produced 310 kg of wheat at a price of Rs 30 per kg of wheat. Calculate India's real GDP of year 2021 taking 2020 as base year.
GDP and Welfare
GDP is the sum total of the value of goods and services created within the geographical boundary of a country in a particular year. In order to compare the GDP figures and other macroeconomic variables of different countries or to compare the GDP figures of the same country at different points of time, we take the help of real GDP instead of relying on current market prices. The ratio of nominal GDP to real GDP gives us an idea of how prices have moved from the base year to the current year. The Consumer Price Index (CPI) and Wholesale Price Index (WPI) are the other important ways to measure change of prices in an economy.

GDP gets distributed among the people as incomes and may treat higher level of GDP of a country as an index of greater well-being of the people of that country. But it may be incorrect to treat GDP as an index of the welfare of the country based on three reasons. Firstly, the distribution of GDP is not uniform, secondly, non-monetary exchanges are not accounted as part of economic activity and lastly, GDP does not take into account externalities.

The aggregate value of goods and services produced in an economy can be calculated by three methods.

From the above diagram, identify the point which is inferior for a consumer with respect to the indifference curve and budget line.
State and explain any three types of direct tax.
When income increases, the demand for type of goods will increase:
"Under the provisions stated in Section 20 and Section 21 of the Reserve Bank of India (RBI) Act, 1934, the RBI is mandated to handle the banking operations of the Government of India."
In the light of the given statement, elaborate the indicated function of the Reserve Bank of India.
What is consumer's equilibrium? Explain the conditions for achieving consumer's equilibrium using the concept of indifference curves and budget lines. Illustrate with a diagram.
Explain six factors that affect market demand for a commodity.
What do you understand by market supply? Describe the determinant elements of supply.
What is deficient demand in an economy? Explain the measures to control it.
Write the meaning of full employment. Mention the factors responsible for full employment.
Write the relationship between the revenue deficit and the fiscal deficit. Are fiscal deficits inflationary?
What are the different types of costs (fixed, variable, total, average, marginal) and how are they related? Explain with the help of diagrams.
Describe Total Revenue, Average Revenue and Marginal Revenue.
What are official reserve transactions? Explain their importance in the balance of payments.
Write down any three identities of calculating the gross domestic product of a country by the three methods of estimating national income.
The following table shows the Total Cost Schedule of a firm. Calculate Total Fixed Cost, Total Variable Cost, Average Variable Cost, Average Cost and Marginal Cost:
Q: 0, 1, 2, 3, 4, 5, 6
Total Cost: 10, 30, 45, 55, 70, 90, 120
The Marginal Rate of Substitution (MRS) between perfectly substitute goods remains constant. Explain with diagram.
Why is the budget line downward sloping? Explain.
What is the difference between planned and unplanned inventory accumulation? Explain.
General public are not allowed to open accounts in the central bank. Does it mean that the central bank does not perform any commercial banking activity? Explain.
Explain the components of money supply.
Distinguish between Micro-economics and Macro-economics.
What do you mean by substitute goods? Give examples of two goods which are substitutes of each other.
When exchange rate in terms of domestic currency rises