Economics forms a part of the General Knowledge paper in the CDS (Combined Defence Services) 2 2025 examination. While it might not be the most heavily weighted section, a fundamental understanding of basic economic principles is essential to answer related questions correctly. This article will outline some of the key economic concepts that CDS 2 2025 aspirants should be familiar with.
Key Basic Economic Principles for CDS 2 2025:
- Demand and Supply:
- Law of Demand: Understanding the inverse relationship between price and quantity demanded.
- Law of Supply: Understanding the direct relationship between price and quantity supplied.
- Equilibrium: How demand and supply interact to determine market price and quantity.
- Factors Affecting Demand and Supply: Understanding the various determinants that can shift demand and supply curves.
- National Income:
- GDP (Gross Domestic Product): Definition and different methods of calculating GDP.
- GNP (Gross National Product): Definition and its relation to GDP.
- NDP (Net Domestic Product) and NNP (Net National Product).
- Per Capita Income: Its significance as a measure of economic development.
- Inflation:
- Definition and Types of Inflation: Understanding different categories like demand-pull and cost-push inflation.
- Causes and Effects of Inflation: How inflation impacts the economy and different sections of society.
- Measures to Control Inflation: Basic understanding of monetary and fiscal policies used to manage inflation.
- Budget and Fiscal Policy:
- Government Budget: Understanding its components (revenue and expenditure).
- Types of Budgets: Surplus, deficit, and balanced budgets.
- Fiscal Policy: Role of government spending and taxation in influencing the economy.
- Monetary Policy:
- Role of the Central Bank (Reserve Bank of India – RBI): Understanding its functions in regulating the money supply.
- Key Monetary Policy Tools: Repo rate, reverse repo rate, cash reserve ratio (CRR), statutory liquidity ratio (SLR), etc. (basic understanding of how these tools work).
- Indian Economy – Basic Features:
- Major Sectors of the Indian Economy: Primary (agriculture), secondary (industry), and tertiary (services).
- Economic Planning in India (brief overview): Five-year plans and their objectives (though less relevant now, basic awareness is helpful).
- Major Economic Reforms in India (brief overview): Liberalization, privatization, globalization.
- Poverty and Unemployment:
- Basic Concepts and Measures of Poverty and Unemployment in India.
- Government Schemes and Initiatives to Address Poverty and Unemployment (general awareness).
- International Trade:
- Basic Concepts of Imports and Exports.
- Balance of Trade and Balance of Payments (basic understanding).
- Role of International Organizations (e.g., WTO, IMF, World Bank – basic awareness).
Preparation Strategy for Economics:
- Focus on Understanding Concepts: Economics is about understanding how the economy works. Focus on grasping the underlying principles rather than rote memorization.
- Relate to Current Events: Try to link economic concepts to current economic issues and news in India and globally.
- Use Simple Language: Don’t get bogged down in complex jargon. Focus on understanding the core ideas in simple terms.
- NCERT Books: Class 11th and 12th Economics NCERT books can provide a good foundation.
- Stay Updated with Basic Economic News: Follow reliable news sources for basic economic developments.
By understanding these fundamental economic principles, CDS 2 2025 aspirants can effectively equip themselves to answer the economics-related questions in the General Knowledge paper.
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