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Instructions

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.

Question 16

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:

Solution

We can find Value added/employment and value added/fixed capital for the different sectors. We get values as Wholly private 0.9 and 1.25; Joint sector 1.59 and 1.19; Central/State/Local 1.8, 1.28; others 0.92 and 0.75. Hence option C.

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