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CAT 2000 — DILR Question 14

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Passage / Data

Answer the following question based on the information given below.

Factory Sector by Type of Ownership.

All figures in the table are in percent of the total for the corresponding column.

​​​​​​​

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

Answer & solution

Correct answer: Central and state/local

  • A

    Wholly private

  • B

    Joint

  • Central and state/local

  • D

    Others

Solution

Value added per employee from the solution to the second question of the set, is highest for the Central and State/Local governments.

∴ That has to be the answer. No need to look for value added per rupee of fixed cost.

Hence, option (c).

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CAT 2000 DILR Q14: A sector is considered “pareto efficient” if its value added per employee and its value added per — Solution | TheCATExam