Hello Aspirants! This blog is dedicated to those who find Economics a confusing nut to crack in UPSC Prelims. We hope by this time you know what to read and refer for this subject. Since this is your last leg of your prelims preparation, we shall guide you what to focus on during your revision.
Be thorough with the basics- UPSC more than often have asked very basic terminologies from core economics. So it is well advised to go through all the basic definition in Micro and Macroeconomics terminologies example fiscal stimulus, Haircut, Round Tripping etc.
o Tip- Try to correlate these terminologies with your newspaper readings as they are more likely to pop up in your exams. Example terms like hedging, Bank haircuts, fiscal cliff are frequently reported and used in newspapers.
Go through current fiscal budget and economic surveys to get well acquainted to core concepts, definition and terminologies.
Get good understanding of key concepts like GDP vs GNP vs NNP. Use of GDP deflator, types of inflation, types of demand (elastic vs inelastic). Questions from this part could be either or application oriented.
Keep yourself updated with contribution to economic from each sector( primary, secondary, tertiary), trade outlook, Current account deficit, Balance of trade vs Balance of payments, about bodies controlling trade like Department of Industry and Internal Trade, WTO etc.
Maximum questions appear from this category in economics and tend to be the most confusing one. Thus the best way to crack such questions is to relate it to current affairs and newspaper reading and check each option by applying core economic concepts.