Today, one of my blog readers, Miss.Deepika asked about the preparation strategy for Economics for Civil Service Preliminary Exams. As you all are aware, Economics is an important subject for CSAT paper 1 which gives us questions ranging from 10 to 20 out of the total 100. Here I am trying to share my thoughts on how one should prepare for this enlightening subject. The syllabus of CSAT declares Economics coverage in an amalgamated way. UPSC trickily mixed Economics with Social Development. From the official site of UPSC, Economics syllabus comes as "Economic and Social Development – Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc."

Economic and Social Development

Read it thoroughly 3-4 times!!. I mean it..period. It clearly says what needs to be included and what needs to be excluded. UPSC has elaborated Economic and Social Development with major sub areas like Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives etc. Here can you expect questions like, Who is the father of Economics or Economics is derived from which Greek word??. NOT AT ALL!!. Syllabus clearly says that each and every questions on "development economics". Before going into the major sub areas that we need to target, let me take you through last year questions on Economics.

CSAT 2012 Question on Economic and Social Development

1. With reference to National Rural Health Mission, which of the following are the jobs of 'ASHA', a trained community health worker?

1. Accompanying women to the health facility for antenatal care checkup

2. Using pregnancy test kits for early detection of pregnancy

3. Providing information on nutrition and immunization

4. Conducting the delivery of baby

Select the correct answer using the codes given below:

(a) 1, 2 and 3 Only

(b) 2 and 4 Only

(c) 1 and 3 Only

(d) 1, 2, 3 and 4

A is the right answer. Ureka!! This question is based on "Social Sector Initiatives"

2. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?

1. Deprivation of education, health, assets and services at household level

2. Purchasing power parity at national level

3. Extent of budget deficit and GDP growth rate at national level

Select the correct answer using the codes given below :

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

A is the right answer. WOO!! This question is based on Poverty. Hope you know that Poverty Index is a measure of "social inclusion" too.

3. Which of the following is /are among the noticeable features of the recommendations of the Thirteenth Finance Commission?

1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design

2. A design for the creation of lakhs of jobs in the next ten years in consonance with India's demographic dividend

3. Devolution of a specified share of central taxes to local bodies as grants

Select the correct answer using the codes given below :

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

A is the right answer. yupee!!. A combination of Indian economic current affairs.

4. What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?

1. Setting up of National Investment and Manufacturing Zones

2. Providing the benefit of 'single window clearance'

3. Establishing the Technology Acquisition and Development Fund

Select the correct answer using the codes given below :

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

D is the right answer. hmmm..Question from Social Sector Initiatives + Sustainable Development.

5. Consider the following specific stages of demographic transition associated with economic development :

1. Low birthrate with low death rate

2. High birthrate with high death rate

3. High birthrate with low death rate

Select the correct order of the above stages using the codes given below :

(a) 1, 2, 3

(b) 2, 1, 3

(c) 2, 3, 1

(d) 3, 2, 1

C is the right answer. UPSC is so polite. A pure question from Demographics.

6. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37-90%. Which of the following are among those Eight Core Industries?

1. Cement

2. Fertilizers

3. Natural gas

4. Refinery products

5. Textiles

Select the correct answer using the codes given below :

(a) 1 and 5 only

(b) 2, 3 and 4 only

(c) 1, 2, 3 and 4 only

(d) 1, 2, 3, 4 and 5

C is the right answer. Index of Industrial Production is a measure of economic development in our country.

7. The endeavour of 'Janani Suraksha Yojana' Programme is

1. to promote institutional deliveries

2. to provide monetary assistance to the mother to meet the cost of delivery

3. to provide for wage loss due to pregnancy and confinement

Which of the statements given above is /are correct?

(a) 1 and 2 only

(b) 2 only

(c) 3 only

(d) 1, 2 and 3

A is the right answer. Once more "Social Sector Initiatives" by UPSC.

8. Consider the following:

1. Hotels and restaurants

2. Motor transport undertakings

3. Newspaper establishments

4. Private medical institutions

The employees of which of the above can have the 'Social Security' coverage under Employees' State Insurance Scheme?

(a) 1, 2 and 3 only

(b) 4 only

(c) 1, 3 and 4 only

(d) 1, 2, 3 and 4

D is the right answer. OMG!!! Again "Social Sector Initiatives".

9. How do District Rural Development Agencies (DRDAs) help in the reduction of rural poverty in India?

1. DRDAs act as Panchayati Raj Institutions in certain specified backward regions of the country.

2. DRDAs undertake area-specific scientific study of the causes of poverty and malnutrition and prepare detailed remedial measures.

3. DRDAs secure inter-sectoral and inter-departmental coordination and cooperation for effective implementation of anti-poverty programmes.

4. DRDAs watch over and ensure effective utilization of the funds intended for anti-poverty programmes.

Which of the statements given above is/are correct?

(a) 1, 2 and 3 only

(b) 3 and 4 only

(c) 4 only

(d) 1, 2, 3 and 4

D is the right answer. Second question on the buzz word-Poverty!!

10. The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following?

1. Other banks retain their deposits with the RBI.

2. The RBI lends funds to the commercial banks in times of need.

3. The RBI advises the commercial banks on monetary matters.

Select the correct answer using the codes given below :

(a) 2 and 3 only

(b) 1 and 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

B is the right answer. Question on RBI. You know, it belongs to that mighty word "etc" in syllabus.

11. Under which of the following circumstances may 'capital gains' arise?

1. When there is an increase in the sales of a product

2. When there is a. natural increase in the value of the property owned

3. When you purchase a painting and there is a growth in its value due to increase in its popularity

Select the correct answer using the codes given below :

(a) 1 only

(b) 2 and 3 only

(c) 2 only

(d) 1, 2 and 3

B is the right answer. I would include this question in "etc" with a new sub division - questions derived from economic current affairs.

12. Which of the following measures would result in an increase in the money supply in the economy?

1. Purchase of government securities from the public by the Central Bank

2. Deposit of currency in commercial banks by the public

3. Borrowing by the government from the Central Bank

4. Sale of government securities to the public by the Central Bank

Select the correct answer using the codes given below :

(a) 1 only

(b) 2 and 4 only

(c) 1 and 3

(d) 2, 3 and 4

C is the right answer. I would include this question in "etc" with a new sub division - questions derived from economic current affairs.

13. Which of the following would include Foreign Direct Investment in India?

1. Subsidiaries of companies in India

2. Majority foreign equity holding in Indian companies

3. Companies exclusively financed by foreign companies

4. Portfolio investment

Select the correct answer using the codes given below :

(a) 1, 2, 3 and 4

(b) 2 and 4 only

(c) 1 and 3 only

(d) 1, 2 and 3 only

D is the right answer. I would include this question in "etc" with a new sub division - questions derived from economic current affairs.

14. Consider the following statements:

The price of any currency in international market is decided by the

1. World Bank

2. demand for goods/services provided by the country concerned

3. stability of the government of the concerned country

4. economic potential of the country in question

Which of the statements given above are correct?

(a) 1, 2, 3 and 4

(b) 2 and 3 only

(c) 3 and 4 only

(d) 1 and 4 only

B is the right answer. Once again a questions derived from economic current affairs.

15. The basic aim of Lead Bank Scheme is that

(a) big banks should try to open offices in each district

(b) there should be stiff competition among the various nationalized banks

(c) individual banks should adopt particular districts for intensive development

(d) all the banks should make intensive efforts to mobilize deposits

C is the right answer. Nothing but Financial inclusion!!.

Hope now you have an insight about the question pattern on Economics on CSAT. I am listing the major areas that each aspirant should focus

1. National income concepts

2. planning in India

3. Banking in India

4. Industry and Public Finance

5. Capital market and Foreign trade

6. Govt schemes

7. Economic problems - Poverty, Unemployment, Inflation etc

8. Power sector and Agriculture in India

9. Human development

10.Economic current affairs

PS: This post deals with how to prepare economics for IAS prelims. Based on the questions above you can formulate a preparation plan for the upcoming CSAT exam. You can relay on our Economic Section for more awareness.