Candidates should be aware of the socio-economic impacts of policies while preparing for UPSC, as this understanding is fundamental to effective governance. Knowledge of how policies affect various populations aids in developing a well-rounded perspective on societal challenges. Understanding equity, inclusivity, and the long-term implications of economic decisions is vital for future civil servants. Candidates can base their answers on real-world case studies, demonstrating their grasp of complexities in policy formulation and implementation during the examination.