While preparing for the Delhi Police Constable exam, you’ve probably noticed that general knowledge is a section that contains 50% weightage of the whole exam. You can expect at least 3 to 4 direct, simple, and fundamental questions on the Indian Economy and its core concepts. SSC asks questions on this topic to check your basic awareness of how the country’s financial machinery works. Economics questions are pure awareness checks. You can easily answer these questions if you know the facts (e.g., who controls inflation?). You score instantly, saving precious time for tougher sections, so you are strongly advised not to skip these easy points. In this blog, we’ve provided exam-level Economics questions for the Delhi Police Constable exam in a free downloadable PDF. But before you download it, take a few free Economics tests to analyze your understanding of this topic.
Concept of Economics for Delhi Police Constable
For this level of the SSC exam, you don’t need a PhD in Finance! Economics focuses on simple awareness of India’s financial and development systems. The syllabus generally covers:
- Macro Basics: Simple definitions like GDP, Inflation, Deflation, and the types of economies (Mixed, Capitalist, Socialist).
- Banking & Finance: The role of the RBI, commercial banks, and concepts like Repo Rate and Reverse Repo Rate.
- Planning & Policy: Facts about the Five-Year Plans (objectives, duration) and the role of NITI Aayog.
- Government Schemes: Key facts about the largest social welfare schemes (e.g., MGNREGA, PMJDY).
Key Scoring Topics You Must Cover
To score well, focus your study time on these high-probability areas for the Delhi Police Constable exam:
| Topic Category | Essential Sub-Topics for Exam |
| National Income | Definition of GDP, GNP, NNP; and the meaning of Per Capita Income. |
| Banking & RBI | Functions of the Reserve Bank of India (RBI), the concept of Monetary Policy, and basic rates (Repo/Reverse Repo). |
| Economic Planning | Objectives and launch years of the First and Second Five Year Plans; the role of NITI Aayog. |
| Fiscal Policy | Simple definitions of Taxation (Direct/Indirect), Budget, and Fiscal Deficit. |
| Terminology | Clear meaning of Inflation, Deflation, Stagflation, and Poverty/Unemployment definitions. |
| Major Schemes | Launch year and main objective of schemes like PMJDY, MNREGA, and major financial inclusion initiatives. |
Economics Questions for Delhi Police Constable PDF, Download for Free
The questions asked by SSC in the Economics section are typically direct facts. They require quick recall, not complex analysis. They are the perfect type of question that can save you time for other time-consuming sections. To help you master these quick facts, we have provided a PDF that consists of the most important and frequently asked questions for the exam. Click on the button given below to download the Economics Questions for Delhi Police Constable PDF for free.
Click to Download Delhi Police Constable Economics Questions PDF
1. The interest rate charged by banks on short-term loans to their largest, most secure and most creditworthy customers is called ______.
(a) Prime Lending Rate
(b) Amortised Rate
(c) Discount Rate
(d) Variable Rate
Ans: a
Sol. Prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to favoured customers—i.e., those with good credit score. Some variable interest rates may be expressed as a percentage above or below prime rate.
2. Cash Reserve Ratio (CRR) is calculated as a percentage of each bank’s _____.
(a) rate of inflation
(b) net demand and time liabilities
(c) credit growth
(d) savings of customers
Ans: b
Sol. Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. The CRR is calculated as a percentage of each bank’s net demand and time liabilities (NDTL).
3. What effect will a decrease in demand and an increase in supply have on equilibrium price?
(a) Equilibrium price will fall
(b) Equilibrium price will rise
(c) Equilibrium price will be constant
(d) Sometimes price will rise and sometimes it will fall
Ans: a
Sol. When there is a decrease in demand and increase in supply of a product, its equilibrium price would fall.
4. A substantial increase in capital expenditure or revenue deficit leads to ___.
(a) Budgetary Deficit
(b) Fiscal Deficit
(c) Primary Deficit
(d) Revenue Deficit
Ans: b
Sol. A fiscal deficit occurs when a government’s total expenditures exceed the revenue that it generates, excluding money from borrowings. Generally, fiscal deficit takes place either due to revenue deficit or a major hike in capital expenditure.
5. What is the value of all tangible resources such as raw materials and labour that are used in the production process called?
(a) Real Cost
(b) Variable Cost
(c) Opportunity Cost
(d) Fixed Cost
Ans: a
Sol. Real cost is the overall actual expense involved in creating goods or services for sale to consumers. It includes the value of all tangible resources such as raw materials and labour used in the production process.
6. A marketplace in which a final good or service is bought and sold is called ______.
(a) Equity Market
(b) Factor Market
(c) Commodity Market
(d) Product Market
Ans: d
Sol. Product Market is the marketplace in which a final good or service is bought and sold. It focuses on finished goods purchased by consumers, businesses, the public sector and foreign buyers.
7. What is the economic impact of increase in productivity of firms?
(a) Decrease in Gross Domestic Product
(b) No change in Gross Domestic Product
(c) The impact may vary among nations and their economic conditions
(d) Increase in Gross Domestic Product
Ans: d
Sol. Increases in productivity allow firms to produce greater output for the same level of input, earn higher revenues, and ultimately generate higher Gross Domestic Product in the economy.
8. What would happen to the demand curve when there is an increase in the price of substitute products?
(a) Outward shift
(b) Remains constant
(c) Initially inward and then after a period outward shift
(d) Inward shift
Ans: a
Sol. If goods A and B are substitutes, an increase in the price of A will result in a leftward movement along the demand curve of A and cause the demand curve for B to shift outward.
9. Which theory in economics proposes that countries export what they can most efficiently and plentifully produce?
(a) Solow-Swan Model
(b) Heckscher-Ohlin Model
(c) Input-Output Model
(d) Cournot Competition
Ans: b
Sol. The Heckscher-Ohlin model proposes that countries export goods that they can most efficiently and plentifully produce, emphasizing the role of abundant factors of production.
10. Which theory is used to make long-run predictions about exchange rates in a flexible exchange rate system?
(a) Purchasing Power Parity Theory
(b) Balance of Payment Theory
(c) Interest Rate Approach
(d) Portfolio Balance Approach
Ans: a
Sol. Purchasing Power Parity (PPP) theory compares different countries’ currencies through a “basket of goods” approach. It predicts that exchange rates adjust so that identical goods cost the same in each country.
Click to Download Delhi Police Constable Economics Questions PDF
Preparation Tips for Delhi Police Constable Economics Questions
Don’t treat Economics like a subject requiring deep conceptual study. We suggest you treat it like a static GK topic focused on facts. Follow these tips to maximize your recall:
- Define Key Terms: Have crystal-clear definitions for GDP, Inflation, Deflation, and Repo Rate. SSC mostly asks simple and direct questions.
- Focus on Institutions: Memorize the establishment year, headquarters, and main function of key bodies: RBI, SEBI, NABARD, and NITI Aayog.
- Use NCERT as a Base: For foundational concepts like the different sectors of the economy (Primary, Secondary, Tertiary), stick to the simple facts provided in basic NCERT textbooks.
- Create “One-Liners”: Convert complex topics (like Five-Year Plans) into simple one-liner facts (e.g., Garibi Hatao was the slogan of the 5th plan).
- Connect with Current Events: If the government introduces a new budget or scheme, be aware of its name, purpose, and the ministry responsible.
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Also Read:
- Delhi Police Constable Cut Off
- Delhi Police Constable Syllabus
- Delhi Police Constable Notification 2025
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FAQs: Economics Questions for Delhi Police Constable
Generally, 3 to 4 direct and simple Economics questions are asked within the General Knowledge section of the exam.
Most questions are fact-based, testing your basic awareness of the Indian economy, government schemes, and financial institutions.
No, they’re easy to moderate. With basic knowledge of terms like GDP, inflation, and fiscal policy, you can easily answer them.
Basic NCERT books (Class 9–10) and SSC-focused GK guides like Lucent’s General Knowledge are sufficient for preparation.
Begin with basic NCERT chapters, then move to topic-wise PDFs and daily quizzes to strengthen your recall and understanding.
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