UPSC Indian Economic Service (IES) MCQs

Q1. What does the law of demand state?

Q2. Which index is used to measure inflation?

Q3. The fiscal deficit indicates:

Q4. In the IS-LM model, what does the LM curve represent?

Q5. Marginal propensity to consume (MPC) is:

Q6. Which of the following is NOT a direct tax?

Q7. Inflation caused by increase in aggregate demand is called:

Q8. The elasticity of demand measures:

Q9. Which measure is used to assess the inequality in income distribution?

Q10. The term “Open Market Operations” refers to:

Q11. Fiscal policy involves:

Q12. Which indicator reflects economic growth?

Q13. The Phillips curve shows the relationship between:

Q14. What does the term “Balance of Payments” signify?

Q15. Which is a characteristic of a perfectly competitive market?

Q16. The concept of “Opportunity Cost” means:

Q17. Which sector is classified as the tertiary sector?

Q18. “Monopolistic Competition” is characterized by:

Q19. The term “Crowding Out Effect” refers to:

Q20. Which institution regulates monetary policy in India?

Q21. GDP at market prices includes:

Q22. The “Human Development Index” measures:

Q23. The Laffer curve illustrates the relationship between:

Q24. Which of the following is NOT a fiscal policy tool?

Q25. In the Keynesian model, aggregate demand is:

Q26. Which is the largest component of India’s GDP?

Q27. Inflation targeting in India is done by:

Q28. Which is NOT part of the Indian Planning Commission’s tasks?

Q29. What is “Public Finance”?

Q30. Which is the most widely used method to calculate national income?

Q31. Which institution publishes the “Economic Survey” of India?

Q32. The term “GNP” stands for:

Q33. Which type of unemployment is due to seasonal variations?

Q34. What does “Monetary Policy” primarily regulate?

Q35. Which of the following is an example of a direct tax?

Q36. Which indicator measures economic inequality?

Q37. India’s first Five Year Plan focused on:

Q38. In economics, “marginal cost” means:

Q39. Which sector contributes the most to India's GDP?

Q40. Which term means a situation with many buyers and sellers but no single entity controls the market?