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CA Foundation · Business Economics · Indian Economy

India's agricultural sector accounted for about 45% of the workforce and 15% of GVA in a given year, while the rest of the economy had the remaining workforce and GVA. Comparing average output per worker, which conclusion follows?

Agricultural output per worker is roughly one-fifth of that in the rest of the economy. Agriculture yields 15/45 ≈ 0.33 per unit of workforce share, while the rest yields 85/55 ≈ 1.55, giving a ratio near 0.22, which shows low agricultural productivity.

  1. AOutput per worker in agriculture is about one-fifth of that in the rest of the economyCorrect
  2. BOutput per worker in agriculture is about one-third of that in the rest of the economy
  3. COutput per worker in agriculture is higher than in the rest of the economy
  4. DOutput per worker is equal in both sectors

Explanation

Agriculture: 15/45 = 1/3 unit of GVA per unit of workforce share. Rest: 85/55 ≈ 1.545. Ratio = 0.333/1.545 ≈ 0.216, about one-fifth. The one-third option wrongly uses only the agriculture ratio without comparing with the rest of the economy.

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