Orientation Note

Which Part of the Syllabus is Covered in this Chapter?

 In this chapter, we will be covering the following part of the syllabus (highlighted in green):

What will you Study in this Chapter?

To cover the syllabus topic as given above, you will be studying the following things in this chapter -

 Basics of Economy
 Circular flow of income in a simple economy
 Calculating Gross Domestic Product

 Important Macroeconomic Identities

 Growth Welfare and Development

 Summary

 Difficulty Level – The chapter contains basic concepts that are little difficult to understand. Hence, it’s
a difficult chapter to comprehend.

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 How to approach this chapter for the objective component?
 Importance – The significance of this chapter is comparatively high from the examination point of
view. Many questions have been asked from this chapter in the previous years as shown below in the
table. For the actual questions refer to the document containing the PYQs of this chapter.

 Nature of Questions (Conceptual/Factual) – The chapter is conceptual; however, factual questions

have also been asked in the previous year’s examination. For example:

Type of Question Question

Conceptual Q. Gross Domestic Product – Depreciation is equal to_____________
RBI Grade B - Phase 2 - 2017

A. Gross National Product

B. Net National Product
C. Net Domestic Product
D. National Income
E. Real Gross Domestic Product

(Answer: Net Domestic Product)

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 Factual Q. Estimates of National Income in India are computed by which
organization? RBI Grade B - Phase 2 – 2018

A. National Statistical Office

B. NITI Aayog
C. Union Ministry of Finance
D. Reserve Bank of India
E. National Sample Survey

(Answer: National Statistical Office)

How to approach this chapter for the descriptive component?

 Note – The RBI Grade B examination had a descriptive pattern of examination from 2007-14. Later
on, the same was discontinued in 2015 and reintroduced in the year 2021. In the NABARD Grade A
examination, the descriptive pattern was introduced in Phase 2 in the year 2021.
 Importance – The significance of this chapter is comparatively high from the examination point of
view. Many questions have been asked from this chapter in the previous years as shown below in the
table. For the actual questions refer to the document containing the PYQs of this chapter.

 Nature of Questions (Static / Current Affairs based)- This chapter is highly relevant for descriptive
answer writing. Questions can be asked which are either purely static in nature or current affairs
oriented.

Type of Question Question

Static Distinguish between economic growth and economic
development. RBI Grade B - Phase 2 - (2007-14)
Current Affairs Based Do you agree that the Indian economy has recently experienced a
V-shaped recovery? Give reasons in support of your answer.

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