List of top Economics Questions asked in GATE XH-C1

Define sustainable development.

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

How can businesses benefit from green finance?

"Infrastructural development is an essential element to obtain the full potential of the rural sector in India". Justify the given statement with valid arguments.

"Opening up of Suez Canal helped in establishing the British monopoly control over India's foreign trade". Justify the given statement with valid arguments.

"With an objective to reduce inflation, government may reduce public Expenditure." Discuss the rationale behind such a step which may be taken by the Government.

Consider a competitive market where the demand and supply functions are given by \( q^d = 12 - 2P \) and \( q^s = 4P \), respectively. The tax rate per unit of output that maximizes the tax yield (revenue) is _________ (in integer).

Suppose the demand for a new pharmaceutical drug, on which the manufacturer has a patent monopoly, is given by \( Q = (100 - P)A^{0.5 \), where \( Q \) is output, \( P \) is the price and \( A \) is advertising expenditure. Production cost of the patented drug is given by \( C(Q) = 60Q \). At the firm’s optimal choices, the ratio of advertising expenditure to sales revenue for the pharmaceutical product will be 1: _________ (in integer).}

The basic tenets of ‘Monetarism’ are

Goods and Services Tax (GST) is

A Government Security (G-Sec)

As economic development proceeds, income inequality tends to follow a(n) ________curve.

For an open economy, the ‘twin deficits’ can be expressed by: \[ \text{[where } S = \text{Savings; } I = \text{Gross Private Investment; } G = \text{Government Expenditures; } TR = \text{Transfer Payments; } TX = \text{Taxes; } X = \text{Exports; } M = \text{Imports and NFIA = Net Factor Income from Abroad]} \]

India has the highest amount of foreign debt in the form of

There are many reasons why a poor country may fail to catch up with a rich neighbour. Which of the following is NOT one of these reasons?

In a two country model, an increase in foreign country’s national income generally leads to:

XYZ Co. Ltd. is a costless monopoly from suburban Mumbai producing and selling exotic mushrooms. The demand for mushrooms is given by \[ Q = 700 - 100P. \text{ Do you agree that XYZ will have a maximum possible total revenue of ₹1500?} \]

In a demand function estimation of a good X, a researcher collected data on various households’ consumption of good X (\( Q_x \)) for various price levels. The researcher also collected data on household income (\( M \)) and household size (\( S \)). The estimated regression result is \[ \log Q_x = -0.345(0.111) - 1.543(2.345) \log P_x + 1.123(0.012) \log M + 0.234(0.123) \log S, \] where \( P_x \) is price per unit of X. The values in the parentheses are the standard errors of the estimated coefficients. From the estimation, one can conclude that

A firm finds that for the product that it produces, its (own) price elasticity of demand is 4. Currently, the firm is selling 2000 units per month at ₹ 5 per unit. If it wishes to increase its sales by 10%, it must

For the production function \( Q = F(K, L) = \sqrt{KL} \) with \( P_K = 4 \) and \( P_L = 2 \), find the values of \( K \) and \( L \) that will minimize the cost of producing 2 units of output.