While the General Awareness section of AFCAT 2 2025 covers a broad range of topics, a foundational understanding of basic economics can help answer certain questions related to India’s economy and current affairs. This article outlines some essential economic concepts that AFCAT aspirants should know.
Key Basic Economic Concepts:
- Demand and Supply: The fundamental forces that determine prices and quantities in a market. Understand the law of demand (inverse relationship between price and quantity demanded) and the law of supply (direct relationship between price and quantity supplied).
- National Income Basics: Familiarity with terms like GDP (Gross Domestic Product – the total value of goods and services produced within a country’s borders), GNP (Gross National Product – includes income earned by residents abroad), and Per Capita Income (average income per person).
- Inflation: A general increase in prices and fall in the purchasing value of money. Understand basic causes (demand-pull, cost-push) and its impact.
- Indian Economy – Key Sectors: A basic understanding of the primary sector (agriculture), secondary sector (industry), and tertiary sector (services) and their contribution to India’s GDP.
- Basic Banking Terms: Awareness of terms like Repo Rate, Reverse Repo Rate (rates at which the central bank lends to and borrows from commercial banks), and their role in controlling money supply.
- Government Budget (Elementary Idea): Understanding the concepts of government revenue and expenditure.
- Economic Reforms (Brief Overview): Awareness of major economic reforms initiated in India (e.g., liberalization, privatization).
How Economics Relates to AFCAT GK:
Questions might indirectly touch upon these concepts when discussing:
- Government policies and their economic impact.
- India’s economic growth and development.
- Current economic issues and trends.
- International economic relations.
Preparation Tip: Focus on understanding the basic definitions and how these concepts relate to current events in the Indian economy. You don’t need to delve into complex economic theories. Reading newspapers and following basic economic news will be beneficial.
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