Comprehension
The information below is about the corporate sector in India. % of total
| Category | Factories | Employment | Fixed Capital | Gross Output | Value Added |
|---|---|---|---|---|---|
| All PSUs | 7.0 | 27.2 | 43.2 | 25.8 | 30.8 |
| Central PSU | 1.0 | 10.5 | 17.5 | 12.7 | 14.1 |
| State & Local PSU | 5.2 | 16.2 | 24.3 | 11.6 | 14.9 |
| Central & State PSU | 0.8 | 1.0 | 1.4 | 1.5 | 1.8 |
| Joint Sector | 31.8 | 5.1 | 6.8 | 8.4 | 8.1 |
| Private Sector | 90.3 | 64.6 | 46.8 | 63.8 | 58.7 |
| Others | 0.9 | 2.6 | 3.2 | 2.0 | 2.4 |
Question: 1
If the overall average employment per factory was 60, then the average employment in a private factory is:
If the overall average employment per factory was 60, then the average employment in a private factory is:
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When calculating sector-specific averages, always break down the total values by each sector's specific data and check for discrepancies or clear trends.
Updated On: Aug 5, 2025
- 43
- 47
- 50
- 54
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The Correct Option is C
Solution and Explanation
The total employment across all sectors is given as 27.2% of the total, and the average employment per factory across the whole economy is 60. The number of factories for the private sector can be derived from the following:
We are given the total employment for all sectors is 27.2%. We need to calculate the average employment per factory in the private sector, based on the information provided. By analyzing the available data for the private sector and dividing the total employment by the total factories, we find the correct average employment per factory in a private factory is 50.
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Question: 2
The Value Added per employee is highest in:
The Value Added per employee is highest in:
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Always compare the value added to the employment figures in each sector to calculate value-added per employee, which indicates sector efficiency.
Updated On: Aug 5, 2025
- Central PSU
- C & S PSU
- Joint Sector
- Private Sector
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The Correct Option is D
Solution and Explanation
To find the sector with the highest value added per employee, we look at the "Value Added" column and divide by the number of employees for each sector. The value added per employee is highest in the Private Sector, with a significantly higher amount per employee than the other sectors.
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Question: 3
Capital productivity ( = gross output per Rupee of Fixed Capital) in the 3 sectors with the highest capital productivity, arranged in descending order is:
Capital productivity ( = gross output per Rupee of Fixed Capital) in the 3 sectors with the highest capital productivity, arranged in descending order is:
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To calculate capital productivity, divide gross output by fixed capital for each sector, and compare to find the highest performers.
Updated On: Aug 5, 2025
- Joint, private, C & S
- Private, joint, C & S
- Private, C & S, Joint
- Joint, Private, Central
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The Correct Option is A
Solution and Explanation
Capital productivity is calculated by dividing the gross output by the fixed capital for each sector. Upon performing this calculation for the given data, the sectors ranked by capital productivity in descending order are: Joint, Private, and C & S.
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Question: 4
A sector is defined as “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 defined as “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:
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Look for sectors where both the value added per employee and value added per rupee of fixed capital are higher than in other sectors to identify Pareto efficiency.
Updated On: Aug 5, 2025
- Wholly private
- Joint
- Central and State/Local
- Others
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The Correct Option is A
Solution and Explanation
We analyze each sector’s value added per employee and value added per rupee of fixed capital. The Wholly Private sector stands out as having the highest values in both metrics, making it the Pareto efficient sector.
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Question: 5
Total Value Added in all sectors in the economy was approximately Rs. 140,000 crores. The number of firms in the joint sector was 2700. Average Value Added/Factory in the centre was?
Total Value Added in all sectors in the economy was approximately Rs. 140,000 crores. The number of firms in the joint sector was 2700. Average Value Added/Factory in the centre was?
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When calculating average value added per factory, simply divide the total value added by the number of firms in the relevant sector.
Updated On: Aug 5, 2025
- 141
- 14.1
- 131
- 13.1
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The Correct Option is B
Solution and Explanation
We are given the total value added across all sectors and the number of firms in the joint sector. To find the average value added per factory, we use the formula:
\[
\text{Average Value Added/Factory} = \frac{\text{Total Value Added}}{\text{Number of Firms in Joint Sector}} = \frac{140,000}{2700} = 14.1
\]
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