Economics Optional Syllabus for UPSC

The optional subjects for the UPSC (Union Public Service Commission) Civil Services Exam include Economics. The syllabus for the Economics optional paper is as follows:

Paper-I:

1. Advanced Microeconomics:
   • Marshallian and Walrasian Approaches to Price determination.
   • Public Goods and Externalities.
   • Externalities and Public Goods.
   • Welfare criteria of consumer’s surplus, applications of indifference curves.
   • Economics of Information and Market Failures.
   • Adverse Selection and Moral Hazard.
   • General Equilibrium and Welfare.
   • Law of Variable Proportions.
   • Modern Theory of Cost.
2. Advanced Macroeconomics:
   • Classical, Keynesian, and New Keynesian Approaches.
   • Income and Employment: Classical and Keynesian Approaches.
   • Consumption Function.
   • Investment Function.
   • Demand for Money.
   • IS-LM and AD-AS Models.
   • Open Economy Macroeconomics.
3. Money-Banking and Finance:
   • Demand for and Supply of Money.
   • Money Multiplier and High-Powered Money.
   • Seigniorage and Inflation.
   • Central Banking and Monetary Policy.
   • Commercial Banks and Credit Creation.
   • Monetary Policy and Stabilization in Closed and Open Economies.
4. International Economics:
   • Classical and Modern theories of International Trade.
   • Comparative Advantage.
   • The Heckscher-Ohlin and Factor Proportions theories of International Trade.
   • Terms of Trade.
   • Tariffs and Trade Barriers.
   • Balance of Payments.
   • Foreign Exchange Markets and Reserves.

Paper-II:

1. Economic Thought:
   • Classical and Neoclassical Economics.
   • Marxist and Keynesian Approaches.
   • Monetarist and New Classical Approaches.
   • Recent Developments.
2. Modern Indian Economic Development:
   • Planning and Economic Development.
   • National Income and Employment.
   • Poverty, Unemployment, and Human Development.
   • Monetary and Fiscal Policy.
   • Industrialization and Urbanization.
   • Trade and Balance of Payments.
3. Statistical Methods in Economics:
   • Probability and Sampling Distributions.
   • Statistical Methods.
   • Estimation and Testing of Hypotheses.
4. Quantitative Methods in Economics:
   • Mathematical Methods in Economics.
   • Linear and Non-linear Programming.
   • Econometric Methods.

The UPSC Economics optional syllabus is extensive and requires a thorough understanding of economic theories and their applications. Aspirants should also be well-versed in the economic developments in India and have a good grasp of statistical and quantitative methods. It’s advisable to refer to the official UPSC website or consult updated study materials for any changes or additions to the syllabus.