List of top Questions asked in GATE XH-C1

(i) With suitable examples, distinguish between Direct Tax and Indirect Tax.

(ii) Responding to the Prime Minister's 'Give it Up Campaign', a large number of Indian families have voluntarily surrendered their cooking gas subsidy. Identify and explain the objective behind this action taken by the Government of India. 

From the following data, calculate Investment Multiplier and Equilibrium Level of Income in the economy: 
Change in Initial Investment ($\Delta I$) = ₹1,000 crore Marginal Propensity to Save (MPS) = 0.5 Autonomous Consumption ($c$) = ₹50 crore Planned Investment = ₹100 crore

From the following data, estimate the value of Net Indirect Taxes (NIT): 
 

Calculate Net Value Added at Factor Cost (NVAfc) from the following data: 
 

Read the following statements carefully: 
Statement 1: Ex-post savings and Ex-post investments are equal at all levels of income. 
Statement 2: Under the effective demand principle, the equilibrium output is equal to ex-ante Aggregate Demand (AD). In the light of the given statements, choose the correct alternative from the following:

In a hypothetical economy, if entire additional income is consumed, the value of investment multiplier would be ____ . (Fill up the blank with the correct alternative.)

If in an economy the Balance of Trade is showing a deficit of Rs.200 crore and the value of import is Rs.900 crore, then the value of exports would be Rs. _____ crore. (Fill up the blank with the correct alternative.)

If in an economy the initial deposits are Rs.4,000 crore and Reserve Ratio (RR) is 10 percent. The value of total deposit created would be Rs. ______ crore.

From the given table, identify that level of income, where Average Propensity to Save (APS) becomes zero: 
 

From the following, identify the correct reasons that may affect the supply of foreign exchange in an economy: 
I. Purchase of land in England by an Indian 
II. Foreign tourists visiting Taj Mahal 
III. Donation of 500 million dollars from Microsoft 
IV. Indian students going to Australia for studies

Identify, what does the shaded area (change in EFG), in the given figure indicate?
 

I. Consumption > Income 
II. Saving = Zero (0) 
III. Consumption < Income
IV. Saving < Zero (0)

The measurement of Balance of Payments deficit is based on ……. transactions.