Comprehension
Directions for the next 5 questions: Answer these questions based on the data provided in the table below: Factory Sector by Type of Ownership. All figures in the table are in percent of the total for the corresponding column.
| Sector | Factories | Employment | Fixed Capital | Gross Output | Value Added |
|---|---|---|---|---|---|
| Public | 7 | 27.7 | 43.2 | 25.8 | 30.8 |
| Central Govt. | 1 | 10.5 | 17.5 | 12.7 | 14.1 |
| State/local Govt. | 5.2 | 16.2 | 24.3 | 11.6 | 14.9 |
| Central & State/local Govt. | 0.8 | 1 | 1.4 | 1.5 | 1.8 |
| Joint | 1.8 | 5.1 | 6.8 | 8.4 | 8.1 |
| Wholly private | 90.3 | 64.6 | 46.8 | 63.8 | 58.7 |
| Others | 0.9 | 2.6 | 3.2 | 2 | 2.4 |
| Total | 100 | 100 | 100 | 100 | 100 |
Question: 1
Suppose the average employment level is 60 per factory. The average employment in wholly private factories is approximately:
Suppose the average employment level is 60 per factory. The average employment in wholly private factories is approximately:
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Total employment = 60 x (total factories). Take the private share of employment and divide by the private share of factories.
Updated On: Nov 4, 2026
- 50
- 47
- 43
- 54
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The Correct Option is C
Solution and Explanation
Step 1: Setup:
Let there be \(N\) factories in all. Total employment \(=60N\).
Step 2: Private sector:
Private employment \(=64.6\%\) of \(60N=0.646\times60N\). Private factories \(=90.3\%\) of \(N=0.903N\).
Step 3: Average:
Average employment in a wholly private factory \(=\dfrac{0.646\times60N}{0.903N}=\dfrac{38.76}{0.903}\approx42.9\approx43\).
Final Answer:
The correct option is (3): 43.
Let there be \(N\) factories in all. Total employment \(=60N\).
Step 2: Private sector:
Private employment \(=64.6\%\) of \(60N=0.646\times60N\). Private factories \(=90.3\%\) of \(N=0.903N\).
Step 3: Average:
Average employment in a wholly private factory \(=\dfrac{0.646\times60N}{0.903N}=\dfrac{38.76}{0.903}\approx42.9\approx43\).
Final Answer:
The correct option is (3): 43.
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Question: 2
Among the firms in different sectors, value added per employee is highest in:
Among the firms in different sectors, value added per employee is highest in:
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Value added per employee is proportional to (value-added share) divided by (employment share) for each sector.
Updated On: Nov 4, 2026
- Central government
- Wholly private
- Joint sector
- Central and State/local governments
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The Correct Option is D
Solution and Explanation
Step 1: Method:
Since both columns are percentages of the totals, the ratio of VA share to employment share is proportional to value added per employee.
Step 2: Compute:
Central govt.: \(14.1/10.5=1.34\). State/local govt.: \(14.9/16.2=0.92\). Central and State/local govt.: \(1.8/1=1.80\). Joint: \(8.1/5.1=1.59\). Wholly private: \(58.7/64.6=0.91\). Others: \(2.4/2.6=0.92\).
Step 3: Compare:
The largest ratio is 1.80 for Central and State/local Govt.
Final Answer:
The correct option is (4): Central and State/local governments.
Since both columns are percentages of the totals, the ratio of VA share to employment share is proportional to value added per employee.
Step 2: Compute:
Central govt.: \(14.1/10.5=1.34\). State/local govt.: \(14.9/16.2=0.92\). Central and State/local govt.: \(1.8/1=1.80\). Joint: \(8.1/5.1=1.59\). Wholly private: \(58.7/64.6=0.91\). Others: \(2.4/2.6=0.92\).
Step 3: Compare:
The largest ratio is 1.80 for Central and State/local Govt.
Final Answer:
The correct option is (4): Central and State/local governments.
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Question: 3
Capital productivity is defined as the gross output value per rupee of fixed capital. The three sectors with the higher capital productivity, arranged in descending order are:
Capital productivity is defined as the gross output value per rupee of fixed capital. The three sectors with the higher capital productivity, arranged in descending order are:
Show Hint
Capital productivity is proportional to (gross output share) divided by (fixed capital share) for each sector.
Updated On: Nov 4, 2026
- Wholly private, joint, central and state/local
- Joint, wholly private, central and state/local
- Wholly private, central and state/local, joint
- joint, wholly private, central.
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The Correct Option is A
Solution and Explanation
Step 1: Compute GO/FC for each sector:
Central: \(12.7/17.5=0.73\). State/local: \(11.6/24.3=0.48\). Central and State/local: \(1.5/1.4=1.07\). Joint: \(8.4/6.8=1.24\). Wholly private: \(63.8/46.8=1.36\). Others: \(2/3.2=0.63\).
Step 2: Order:
Highest three: Wholly private (1.36), Joint (1.24), Central and State/local (1.07).
Final Answer:
The correct option is (1): Wholly private, joint, central and state/local.
Central: \(12.7/17.5=0.73\). State/local: \(11.6/24.3=0.48\). Central and State/local: \(1.5/1.4=1.07\). Joint: \(8.4/6.8=1.24\). Wholly private: \(63.8/46.8=1.36\). Others: \(2/3.2=0.63\).
Step 2: Order:
Highest three: Wholly private (1.36), Joint (1.24), Central and State/local (1.07).
Final Answer:
The correct option is (1): Wholly private, joint, central and state/local.
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Question: 4
A sector is considered "pareto efficient" if its value added per employee and its value added per rupee of fixed capital is higher than those of all other sectors. Based on the table data, the pareto efficient sector is:
A sector is considered "pareto efficient" if its value added per employee and its value added per rupee of fixed capital is higher than those of all other sectors. Based on the table data, the pareto efficient sector is:
Show Hint
Compute VA share / employment share and VA share / fixed-capital share for every sector, and see which sector is top in both.
Updated On: Nov 4, 2026
- Central and state/local
- Joint
- Wholly private
- Others
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The Correct Option is A
Solution and Explanation
Step 1: VA per employee (VA% / Employment%):
Central: 1.34; State/local: 0.92; Central and State/local: 1.80; Joint: 1.59; Wholly private: 0.91; Others: 0.92. Highest: Central and State/local.
Step 2: VA per rupee of fixed capital (VA% / FC%):
Central: \(14.1/17.5=0.81\); State/local: \(14.9/24.3=0.61\); Central and State/local: \(1.8/1.4=1.29\); Joint: \(8.1/6.8=1.19\); Wholly private: \(58.7/46.8=1.25\); Others: \(2.4/3.2=0.75\). Highest: Central and State/local.
Step 3: Conclusion:
Central and State/local Govt. is highest on both measures, so it is Pareto efficient.
Final Answer:
The correct option is (1): Central and state/local.
Central: 1.34; State/local: 0.92; Central and State/local: 1.80; Joint: 1.59; Wholly private: 0.91; Others: 0.92. Highest: Central and State/local.
Step 2: VA per rupee of fixed capital (VA% / FC%):
Central: \(14.1/17.5=0.81\); State/local: \(14.9/24.3=0.61\); Central and State/local: \(1.8/1.4=1.29\); Joint: \(8.1/6.8=1.19\); Wholly private: \(58.7/46.8=1.25\); Others: \(2.4/3.2=0.75\). Highest: Central and State/local.
Step 3: Conclusion:
Central and State/local Govt. is highest on both measures, so it is Pareto efficient.
Final Answer:
The correct option is (1): Central and state/local.
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Question: 5
The total value added in all sectors is estimated at Rs. 14,000 crores. Suppose that the number of firms in the joint sector is 2700. The average value added per factory, in Rs. crores, in the central govt. is:
The total value added in all sectors is estimated at Rs. 14,000 crores. Suppose that the number of firms in the joint sector is 2700. The average value added per factory, in Rs. crores, in the central govt. is:
Show Hint
Use the joint sector (1.8% of factories) to find the total number of factories, then the number of central govt. factories and their value added.
Updated On: Nov 4, 2026
- 1.41
- 1.32
- 13.2
- 14.1
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The Correct Option is B
Solution and Explanation
Step 1: Total factories:
Joint sector has 1.8% of all factories: \(0.018N=2700\Rightarrow N=150000\).
Step 2: Central govt. factories:
Central govt. has 1% of factories: \(0.01\times150000=1500\).
Step 3: Central govt. value added:
\(14.1\%\) of Rs. 14,000 crores \(=0.141\times14000=1974\) crores.
Step 4: Average:
\(1974/1500=1.316\approx1.32\) crores per factory.
Final Answer:
The correct option is (2): 1.32.
Joint sector has 1.8% of all factories: \(0.018N=2700\Rightarrow N=150000\).
Step 2: Central govt. factories:
Central govt. has 1% of factories: \(0.01\times150000=1500\).
Step 3: Central govt. value added:
\(14.1\%\) of Rs. 14,000 crores \(=0.141\times14000=1974\) crores.
Step 4: Average:
\(1974/1500=1.316\approx1.32\) crores per factory.
Final Answer:
The correct option is (2): 1.32.
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