Preparation Guide For UPSC Indian Economic Services G.E. -03

Indian Economic Services is the most esteemed exam, requiring a mammoth level of study but with smartness.

Though it is said, it’s the most challenging exam, what if we tell you it is all a myth?

One can easily crack this exam with a clear base and persistent practice.

The Indian Economics Services Exam is held for three days, i.e. two exams per day. 

General Economics Paper 3 is held on the third day of the exam. 

So let’s talk about it and focus on its importance, correct strategy, and reference answers.

Importance of General Economic – 03

If we look at the topics of General Economics paper 3, all of its modules are related to everyday chores of management but at a higher level.

Here we will study Public Finance, Environmental Economics, Industrial Economics, and State Market and Planning. 

Hence in all, it is a very interesting exam for Indian Economics Services, in which one can fetch marks easily.

Solved PYQs of General Economics – 03

A reference to answer writing in the exam is very necessary. So here at Ecoholics, we are providing students with hints on How to solve and write valuable answers in your sheets.

Visit: PYQs of General Economics -03


Q1) What is the rationale behind zero-based budgeting?

  • Zero-based budgeting (ZBB) is a budgeting approach that involves developing a new budget from scratch every time (i.e., starting from “zero”), versus starting with the previous period’s budget and adjusting it as needed.
  • Rationale behind it is that it helps managers tackle lower costs in a company, aims to drive value for an organization by optimizing costs and not just revenue, Coordination and Communication, Reduction in redundant activities, to maintain accuracy, efficiency and budgetary inflation.
  • Zero-based budgeting ensures that managers think about how every dollar is spent, every budgeting period. This process also forces them to justify all operating expenses and consider which areas of the company are generating revenue.
Zero Based Budgeting | Meaning, Steps, Advantage, Disadvantage


Q1) Differentiate bequest value and existence value with examples

  • Bequest value is the value of satisfaction from preserving a natural environment or a historic environment, in other words, ensuring the availability of biodiversity and ecosystem functioning to future generations. This is determined by a person’s concern that future generations should have access to resources and opportunities.
  • For example, the willingness to pay for preserving a river so that your children can swim in it. It is often used when estimating the value of an environmental service or good. 
  • Existence value is the value placed on knowing that a resource exists, even though no-one may ever use it reflecting the benefit people receive from knowing that a particular environmental resource, such as Antarctica, the Grand Canyon, endangered species, or any other organism or thing exists.


Q1) Clarify why a monopolist does not have a supply curve?

  • The supply curve is relevant for a price-taker. There is no so supply curve of a price-maker.
  • A monopoly firm has no well-defined supply curve because of the fact that output decision of a monopolist not only depends on marginal cost but also on the shape of the demand curve.
  • As a result, shifts in demand do not trace out a series of prices and quantities as happens with a competitive supply curve.
  • Concept of supply curve is relevant only when the firm exercises no control over the price of the product and therefore takes it as given.
  • A monopolist does not take the price as given and exercises control over the price of the product as he is the sole producer of the product. 
  • Thus it is difficult to find out one-to-one relation between a particular price and quantity offered for sale at that price. So we cannot locate any point on the supply curve. Hence the supply curve cannot be drawn. In other words, the MC curve of the monopolist is not its supply curve.

These were some samples of our solved PYQs, to load more click on the link given below. 

Solved Model Question Paper Download the App

Also, for better understanding, join Ecoholics, Indian Economic Services workshop session, which has been proven essential for past students who in turn cracked the exam.

Indian Economic Services workshop by Sanat Sir

Strategy and Time-Management

For cracking any exam a basic strategy is a must. And with that strategy, time and subject management is essential. So here’s the suggested strategy for the exam.

Tips & Strategies to crack UPSC Indian Economic Service Exam 2022/23 | Learn Economics on Ecoholics

Also, we are left with less time, here’s the video for you.

10 Days Revision Strategy to Crack Indian Economic Service Exam | Learn Economics on Ecoholics

Value Additions

Every examiner looks at the answers in detail, and if you want to impress your examiner, here’s the tip you can follow:

  • Add graphs to your answer, wherever required.
  • Add calculations.
  • Give examples
  • Provide a case study related to the answer.

For more clearance, tap on the link.

Answer Writing Skills

Approach towards the Exam

  • Focus on important topics and terms.
  • Stay updated, with Current Affairs
  • Connect your topic with the case studies
  • Revision is a must
  • Explain your answers with examples

That’s all for the day, for more information, log on to

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