Economy Questions in UPSC Prelims 2026

Economy Questions in UPSC Prelims 2026: The Economy section plays a major role in the UPSC Civil Services Prelims Exam. In the 2026 paper, Economy questions carried significant weightage, testing both core concepts and current financial updates. The May 2026 examination presented a balanced mix of questions. Candidates faced questions on inflation, banking reforms, international trade, and government schemes. A strong command over basic economic theories and regular tracking of financial news helped aspirants clear this section easily. Understanding this trend is essential for future success. 

Economy Questions For UPSC Prelims With Answers

Economy Questions for UPSC Prelims with Answers have been provided for the candidates' knowledge and understanding for the exam preparation. 

Q The artificially fixed rupee-sterling exchange rate prescribed by the Hilton-Young Commission (1926) was adopted by the British Government for which one of the following reasons?

(a) Aiding the flow of remittances from India and maintaining India’s creditworthiness.

(b) Providing support to Indian importers.

(c) Encouraging the export of cotton produce from India.

(d) Preventing depreciation of the Rupee in terms of gold.

Answer: A

Q Which of the following, with reference to Indian States, is/are not correct?

1. Uttar Pradesh shares its boundary with the highest number of other Indian States.

2. Rajasthan shares the longest international border among all Indian States.

3. Sikkim is the only State that shares its boundary with just one other Indian State.

Select the answer using the code given below:

(a) 1 only

(b) 1 and 2

(c) 2 and 3

(d) 3 only

Answer: A

Q Consider the following statements about the archaeological findings in Harappan towns:

I. There is a wide occurrence of spindle-whorls, but a total absence of spinning wheels.

II. The discovery of standardised weights and graduated measurement scales reflects the mathematical and metrological skills of the Harappans.

III. The architecture of houses with individual wells, private courtyards, and separate bathing platforms suggests the emergence of a common property system.

Which of the inferences drawn above from the statements are correct?

(a) I and II only

(b) II and III only

(c) I and III only

(d) I, II and III

Answer: C

Q Consider the following statements relating to the use of the place-value system in India:

1. The earliest epigraphic use of the place-value system in India is found in the Mankani plates from Gujarat (AD 595–596).

2. In the ninth century, place-values became general in inscriptions all over India.

3. The place-values have been found in Sanskrit inscriptions in South-east Asia as early as the seventh century.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

Answer: C

Q With reference to modern Indian history, consider the following statements:

1. The Eka Movement was provided leadership by the taluqdars of Awadh, whereas the Bardoli Satyagraha was a movement of the landless labourers.

2. The Bardoli Satyagraha was a campaign against the enhancement of land revenue, while the Eka Movement was a protest against excessive extraction of rents.

3. The Eka Movement was located in the Varanasi and Mirzapur districts of the present-day U.P., while the Bardoli Satyagraha took place in Saurashtra.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 3 only

Answer: D

Q Consider the following statements about the Rigvedic period:

I. Irrigation from wells allowed agriculture to expand away from flood plains and strips on river margins into the present Punjab and Haryana plains, having underground water levels reasonably close to the surface.

II. Draught-animal power was employed to draw up water out of the wells.

Which of the following pieces of information support/supports the above statements?

1. There is evidence in the Rigveda of the use of ashma chakra (stone pulley wheel) and ahava (strapped wooden pails) to draw up water.

2. The term khanitrima is used in the Rigveda to denote waters produced by digging.

Select the answer using the code given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: A

Q With reference to the physical geography of India, consider the following statements:

1. Parts of the western coast of India underwent submergence beneath the Arabian Sea due to faulting and tilting during the Tertiary period.

2. The hills of the Eastern Ghats are classic examples of residual or relict mountain ranges that have been heavily denuded by ancient river systems.

3. Peninsular rivers are geologically old and are characterised by deep, V-shaped valleys and rapid vertical erosion.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: C

Q Consider the following statements regarding the geographical and climatic features of the Andaman and Nicobar Islands:

1. The islands feature a typical humid, tropical coastal climate with warm temperatures throughout the year due to their proximity to the equator.

2. Due to their unique geographic position in the Bay of Bengal, the islands receive heavy rainfall from both the South-west and the returning North-east monsoons.

3. The islands experience their most prolonged dry spell and minimal precipitation between May and November.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: B

Q With reference to environmental conservation in India, consider the following statements regarding Madhav National Park:

1. In recent administrative notifications, it was officially declared a Tiger Reserve, making it part of the growing network of protected big cat habitats in Madhya Pradesh.

2. Sakhya Sagar, a major lake located within the park boundary, is designated as a Ramsar Site (Wetland of International Importance).

3. The park’s geographical and administrative territory is shared between the states of Madhya Pradesh and Rajasthan.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: B

Q Which of the following statements is/are correct regarding the biological and ecological characteristics of the Amur Falcon (Falco amurensis)?

1. It completes one of the longest overwater migration routes among all raptors, travelling from East Asia across the Indian Ocean to Southern Africa.

2. The widespread occurrence of its wintering stopovers in Northeast India reflects its adaptation to permanent residency in the region due to climate shifts.

3. It plays a significant role in agricultural pest control by feeding extensively on termites and migratory insects during its journey.

Select the answer using the code given below:

(a) 1 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

Answer: D

Q With reference to the global textile market and traditional Indian silks, consider the following statements regarding the geographical indications and properties of Eri Silk:

1. Unlike Mulberry silk, it is widely harvested through non-violent or "Ahimsa" silk processes, where the moth is allowed to leave the cocoon naturally.

2. It holds unique thermal properties, making it suitable for both winter and summer clothing, and naturally absorbs moisture efficiently.

Select the answer using the code given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: A

Q Which of the following countries do ships have to cross the Strait of Hormuz to reach the Indian Ocean?

1. Bahrain

2. Syria

3. Qatar

4. Egypt

Select the answer using the code given below:

(a) 1 and 2

(b) 1 and 3

(c) 2 and 3

(d) 3 and 4

Answer: A

Q: Which one of the following Carnatic music ragas is similar to Raga Bilawal in Hindustani music?

(a) Nat Bhairavi

(b) Kamavardhini

(c) Hanumatodi

(d) Dheera Shankarabharanam

Answer: A

How To Start Preparing For UPSC Prelims 2026?

Preparing for this competitive exam requires a step-by-step and disciplined approach in the Economy section.

• Understand the Syllabus: Read the official UPSC syllabus carefully. Knowing the exact topics helps in selecting the right study material and avoids wasting time on unnecessary subjects.

• Read NCERT Books: Start with basic school books from Class 6 to Class 12. These books build a strong foundation and explain complex topics in very simple terms.

• Read Newspapers Daily: Follow a reliable national newspaper every day. Focus on national news, government policies, and international events to stay updated with current affairs.

• Make a Study Plan: Create a simple daily and weekly timetable. Allocate fixed hours for each subject and stick to the routine to cover the syllabus on time.

• Practice Previous Papers: Solve past exam question papers. This helps in understanding the type of questions asked and improves time management during the actual test.