23 Topics.
0 of 7 Concepts Done
What to Study: Why did macroeconomics arise as a separate branch? Remember the thinker, the 1936 work and the event linked to its start. Understand how it differs from studying single firms or households, which four players it treats as interacting, and why money is used to add up different goods.
What to Study: How do you tell a final good from an intermediate good? Does it depend on the good itself or on how it is used? Can the same wheat be final in one case and intermediate in another? Understand why counting intermediate goods in GDP would cause double counting.
What to Study: Learn the two kinds of final goods, with examples. Distinguish consumption spending from investment spending in meaning, examples and effect on the economy.
What to Study: Can you classify a variable as a stock or a flow? Apply the test to common pairs: capital and investment, wealth and income, public debt and fiscal deficit. Which of each pair is a stock and which a flow?
Asked in UPSC PrelimsUPSC 2024
What to Study: Remember what physical capital is and what it includes. Distinguish fixed capital from working capital, with examples. Understand what capital-augmenting technological progress means, using an example from farming.
Asked in UPSC PrelimsUPSC 2023
What to Study: Learn the main kinds of intangible capital (intellectual property, brand recognition, customer lists, human capital). Understand how assets with no physical form still create value, and why they are linked to higher productivity.
What to Study: Be clear about gross investment, depreciation and net investment, and how they are related. What components make up gross capital formation in India's national accounts? Understand why capital formation is needed for economic growth.