List of top Economics Questions asked in GATE XH-C1

Consider a simple Keynesian closed economy model with the following information:
The Marginal Propensity to Consume (MPC) is 0.9 and the initial level of saving is INR 120. When income rises by INR 100, then the new level of saving will be INR ____________ (in integer).

Consider a two-person exchange economy where two goods, \( x \) and \( y \), are available in limited quantities of 50 and 100, respectively. The preferences of the two persons, Anil and Binod, are given by the utility functions: \[ U_{{Anil}}(x_{{Anil}}, y_{{Anil}}) = x_{{Anil}}^{0.4} y_{{Anil}}^{0.6} \] \[ U_{{Binod}}(x_{{Binod}}, y_{{Binod}}) = x_{{Binod}}^{0.6} y_{{Binod}}^{0.4} \] If they decide to share good \( y \) equally among themselves, the amount of good \( x \) Anil receives is ______________ (in integer).

Consider the following Harrod-Domar growth equation: \[ \frac{s}{\theta} = g + \delta \] where \( s \) is the saving rate, \( \theta \) is the capital-output ratio, \( g \) is the overall growth rate, and \( \delta \) is the capital depreciation rate. If \( \delta = 0 \) and \( s = 20% \), then to achieve \( g = 10% \), the capital-output ratio will be ________ (in integer).

Let \( Y \) be income, \( r \) be the interest rate, \( G \) be government expenditure, and \( M_s \) be money supply. Consider the following closed economy IS-LM equations with a fixed general price level (\( \bar{P} \)): IS equation: \[ Y = 490 + 0.6Y - 4r + G \] LM equation: \[ \frac{M_s}{\bar{P}} = 20 + 0.25Y - 10r \] If \( G = 330 \) and \( \frac{M_s}{\bar{P}} = 500 \), then the equilibrium \( Y \) is ________ (round off to one decimal place).

Consider the following Harrod-Domar growth equation: \[ \frac{s}{\theta} = g + \delta \] where \( s \) is the saving rate, \( \theta \) is the capital-output ratio, \( g \) is the overall growth rate, and \( \delta \) is the capital depreciation rate. If \( \delta = 0 \) and \( s = 20% \), then to achieve \( g = 10% \), the capital-output ratio will be ________ (in integer).

Let \( Y \) be income, \( r \) be the interest rate, \( G \) be government expenditure, and \( M_s \) be money supply. Consider the following closed economy IS-LM equations with a fixed general price level (\( \bar{P} \)):
IS equation: \[ Y = 490 + 0.6Y - 4r + G \] LM equation: \[ \frac{M_s}{\bar{P}} = 20 + 0.25Y - 10r \] If \( G = 330 \) and \( \frac{M_s}{\bar{P}} = 500 \), then the equilibrium \( Y \) is ________ (round off to one decimal place).

Consider a two-person exchange economy where two goods, \( x \) and \( y \), are available in limited quantities of 50 and 100, respectively. The preferences of the two persons, Anil and Binod, are given by the utility functions: \[ U_{{Anil}}(x_{{Anil}}, y_{{Anil}}) = x_{{Anil}}^{0.4} y_{{Anil}}^{0.6} \] \[ U_{{Binod}}(x_{{Binod}}, y_{{Binod}}) = x_{{Binod}}^{0.6} y_{{Binod}}^{0.4} \] If they decide to share good \( y \) equally among themselves, the amount of good \( x \) Anil receives is ______________ (in integer).

Which of the following statements is/are NOT CORRECT?

Consider the two scenarios for a small open economy based on the Mundell-Fleming IS-LM model with floating exchange rate and perfect capital mobility.

Where \( Y \) is aggregate income, \( C \) is aggregate consumption, \( I \) is investment, \( r^* \) is the world interest rate, \( G \) is government expenditure, \( T \) is taxes, \( NX \) is net exports, \( e \) is exchange rate, \( M \) is money supply, and \( P^* \) is general price level. Given the relationships:
\( I \) has a negative relationship with \( r^* \),
\( NX \) depends negatively on both \( e \) and \( Y \),
\( P^* \) is fixed.
Which of the following statements is/are CORRECT?

A simple Keynesian open economy model is given by: \[ S + T + M = G + I + X \] where \( S \), \( I \), \( G \), \( T \), \( X \), and \( M \) stand for saving, investment, government expenditure, taxes, exports, and imports, respectively. If the country has a trade surplus, which strategy/strategies among the following will reduce the trade imbalance?

Match Column I with Column II.

Consider a simple Keynesian closed economy model with the following information:
The Marginal Propensity to Consume (MPC) is 0.9 and the initial level of saving is INR 120. When income rises by INR 100, then the new level of saving will be INR ____________ (in integer).

Which of the following statements is/are the key feature(s) of India’s New Economic Reforms (1991)?

Which of the following statements is/are CORRECT?

In the context of environmental cost-benefit analysis, which of the following statements is/are NOT CORRECT?

Which one of the following statements is NOT CORRECT in the context of Keynesian Absolute Income Hypothesis?

Meaning of 'Human Development':

Defend or refute the following statements with valid arguments:
"The policy of protectionism encouraged the growth of domestic industries, but at the same time proved to be an impediment."

Explain the need and type of land reforms implemented in the agriculture sector.

How can businesses benefit from green finance?

State the public project areas where Sovereign Green Bonds are focused.

Define sustainable development.

"Trade Deficit must exist, if a country is facing situation of Current Account Deficit (CAD)." Defend or refute the above mentioned statement with valid arguments.

Explain the changes that were observed in India's occupational structure during the British rule.