GATE 2022 General Aptitude (GA)

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GATE 2022 General Aptitude (GA)

Q.1 – Q.5 Carry ONE mark each.

Q.1 Inhaling the smoke from a burning _________ could _________ you quickly.

(A) tire / tier

(B) tire / tyre

(C) tyre / tire

(D) tyre / tier

Q.2 A sphere of radius 𝑟 cm is packed in a box of cubical shape.

What should be the minimum volume (in cm3 ) of the box that can enclose the
sphere?

(A) 𝑟
8

(B) 𝑟

(C) 2𝑟

(D) 8𝑟

Page 1
Q.3 Pipes P and Q can fill a storage tank in full with water in 10 and 6 minutes,
respectively. Pipe R draws the water out from the storage tank at a rate of 34
litres per minute. P, Q and R operate at a constant rate.

If it takes one hour to completely empty a full storage tank with all the pipes
operating simultaneously, what is the capacity of the storage tank (in litres)?

(A) 26.8

(B) 60.0

(C) 120.0

(D) 127.5

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Q.4 Six persons P, Q, R, S, T and U are sitting around a circular table facing the
center not necessarily in the same order. Consider the following statements:

 P sits next to S and T.


 Q sits diametrically opposite to P.
 The shortest distance between S and R is equal to the shortest distance
between T and U.

Based on the above statements, Q is a neighbor of

(A) U and S

(B) R and T

(C) R and U

(D) P and S

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Q.5 A building has several rooms and doors as shown in the top view of the building
given below. The doors are closed initially.

What is the minimum number of doors that need to be opened in order to go


from the point P to the point Q?

(A) 4

(B) 3

(C) 2

(D) 1

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Q. 6 – Q. 10 Carry TWO marks each.

Q.6 Rice, a versatile and inexpensive source of carbohydrate, is a critical component


of diet worldwide. Climate change, causing extreme weather, poses a threat to
sustained availability of rice. Scientists are working on developing Green Super
Rice (GSR), which is resilient under extreme weather conditions yet gives higher
yields sustainably.

Which one of the following is the CORRECT logical inference based on the
information given in the above passage?

(A) GSR is an alternative to regular rice, but it grows only in an extreme weather

(B) GSR may be used in future in response to adverse effects of climate change

(C) GSR grows in an extreme weather, but the quantity of produce is lesser than
regular rice

(D) Regular rice will continue to provide good yields even in extreme weather

Page 5
A game consists of spinning an arrow around a stationary disk as shown below.
Q.7
When the arrow comes to rest, there are eight equally likely outcomes. It could
come to rest in any one of the sectors numbered 1, 2, 3, 4, 5, 6, 7 or 8 as shown.

Two such disks are used in a game where their arrows are independently spun.

What is the probability that the sum of the numbers on the resulting sectors upon
spinning the two disks is equal to 8 after the arrows come to rest?

(A) 1
16

(B) 5
64

(C) 3
32

(D) 7
64

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Q.8 Consider the following inequalities.

(i) 3𝑝 − 𝑞 < 4
(ii) 3𝑞 − 𝑝 < 12

Which one of the following expressions below satisfies the above two
inequalities?

(A) 𝑝 + 𝑞 < 8

(B) 𝑝 + 𝑞 = 8

(C) 8 ≤ 𝑝 + 𝑞 < 16

(D) 𝑝 + 𝑞 ≥ 16

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Q.9 Given below are three statements and four conclusions drawn based on the
statements.

Statement 1: Some engineers are writers.

Statement 2: No writer is an actor.

Statement 3: All actors are engineers.

Conclusion I: Some writers are engineers.

Conclusion II: All engineers are actors.

Conclusion III: No actor is a writer.

Conclusion IV: Some actors are writers.

Which one of the following options can be logically inferred?

(A) Only conclusion I is correct

(B) Only conclusion II and conclusion III are correct

(C) Only conclusion I and conclusion III are correct

(D) Either conclusion III or conclusion IV is correct

Page 8
Q.10 Which one of the following sets of pieces can be assembled to form a square
with a single round hole near the center? Pieces cannot overlap.

(A)

(B)

(C)

(D)

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)
XH-B1: Q.11 – Q.17 Carry ONE mark Each

Q.11 A relationship is expressed as Iodine : Goitre.

The pair(s) of words showing SIMILAR relationship is/are

Space for Figure/Equation, if any:

(A) Mango : Anaemia

(B) Insulin : Diabetes

(C) Fat : Obesity

(D) Hormones : Heredity

Q.12 Three individuals are named P, Q, and R. Together they have a total of fifteen
children of which nine are boys. P has three girls and Q has same number of boys.
Q has one more child than P, who has four children. R has four more boys than the
number of girls. The number of girls of R is equal to the number of boys of P.
How many boys do R and P have?

Space for Figure/Equation, if any:

(A) R = 3, P = 3

(B) R = 4, P = 2

(C) R = 5, P = 1

(D) R = 2, P = 4

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.13 A sentence has been given below.

The train will leave at 8:30 PM, we have been ready by 7:30 PM, so that we can
reach the station on time.

To make the above sentence grammatically correct, the phrase marked in bold is to
be replaced by

Space for Figure/Equation, if any:

(A) were

(B) are

(C) must be

(D) should have

Q.14 Complete the sentence correctly using the options given below.

Hastings____(p)_____ developed as a holiday resort after ___(q)____ .

Space for Figure/Equation, if any:

(A) (p) = a seaside town, (q) = the first world war

(B) (p) = , a seaside town, (q) = the First World War

(C) (p) = , a Seaside Town, (q) = World War I

(D) (p) = A seaside town (q) = World War I

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.15 The Arecibo telescope does not resemble what most of us think of when we hear
the word telescope. Its reflective surface covers an area of 20 acres, which is quite
remarkable. Dangling above it are towers and cables, sub-reflectors and antennas,
all of which can be positioned using 26 motors to transmit radio waves and receive
echoes with astonishing precision.

From the passage, it can be inferred that most telescopes

Space for Figure/Equation, if any:

(A) are not as large as Arecibo

(B) do not have reflective surface

(C) cannot be re-positioned

(D) strictly have 26 motors

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.16 Tailgating another vehicle is unsafe and illegal. Many rear-end collisions are caused
by drivers following too close to the vehicle in front of them. The rules state that a
driver must keep significant distance from the vehicle in front in order to stop safely
and avoid a collision. Drivers should allow a minimum two seconds gap between
their vehicle and the one ahead. At 60 km per hour, this equates to a gap of
33 meters; at 100 km per hour, it equates to a gap of 55 meters. More distance is
needed to safely stop in rain or poor visibility, as during rain slippery roads reduce
the effectiveness of braking.

Which of the following statement(s) can be inferred from the above passage?

Space for Figure/Equation, if any:

(A) People drive faster in rain and under poor visibility.

(B) Braking may not be as effective during rain as in the dry conditions.

(C) Tailgating is against the road rules.

(D) Collision has no relationship with tailgating.

Q.17 There are three separate, but equal-sized boxes. Inside each box, there are two
separate small boxes. Inside each of the small boxes, there are four even smaller
boxes. The total number of boxes will be _______ .

Space for Figure/Equation, if any:

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)
Q.18 – Q.26 Carry TWO marks Each

Q.18 In a specific language, xer dan means “big horse”, liro cas means “red tomato” and
dum cas dan means “big red barn”.

The equivalent word for barn in this language is

Space for Figure/Equation, if any:

(A) dum

(B) liro

(C) dan

(D) cas

Q.19 Park street is parallel to Rock street. Garden street is perpendicular (90o) to Lake
street. Lake street is parallel to Rock street.

For the situation described above, the TRUE statement is

Space for Figure/Equation, if any:

(A) Park street is perpendicular to Lake street

(B) Rock street is parallel to Garden street

(C) Park street is parallel to Garden street

(D) Garden street is perpendicular to Park street

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.20 Six examinations are required to be conducted in a week starting from Sunday to
Saturday. Hindi is not scheduled on the first day and English is not scheduled before
Hindi. Mathematics is scheduled one day after Physics. Biology is scheduled two
days after Hindi. One day prior to Chemistry, there is no examination. Only one
examination can be scheduled on a single day and Sunday is not an off day. What
are the subjects scheduled on first and the last days?

Space for Figure/Equation, if any:

(A) First day Physics, Last day Biology

(B) First day Physics, Last day Chemistry

(C) First day Physics, Last day English

(D) First day English, Last day Biology

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.21 A passage consists of 6 sentences. The first and sixth sentences of the passage are
at their correct positions, while the middle four sentences (represented by P, Q, R,
and S) are jumbled up.

First sentence: Smoke oozed up between the planks.

P: Passengers were told to be ready to quit the ship.

Q: The rising gale fanned the smouldering fire.

R: Everyone now knew there was fire onboard.

S: Flames broke out here and there.

Sixth sentence: Most people bore the shock bravely.

The most logically CORRECT order for the given jumbled up sentences is

Space for Figure/Equation, if any:

(A) QSRP

(B) QPSR

(C) RSPQ

(D) PQRS

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.22 For a painting to succeed, it is essential that the painter and his public agree about
what is significant. The subject of the painting may have a personal meaning for the
painter or a common person; but there can also be the possibility of their agreement
on its general meaning. It is at this point that the culture of the society and the period
in question precedes the artists and her/his art. Renaissance art would have meant
nothing to the Aztecs, and vice versa. If, to some extent, a few intellectuals can
appreciate them both today, it is because their culture is a historical one. Its
inspiration is history and all known developments to date.

According to the passage, which of the following is/are NOT necessarily among
the attributes needed for a painter to succeed?

Space for Figure/Equation, if any:

(A) The subject must have a personal meaning for the painter.

(B) The painter is able to communicate and justify the significance of its subject
selection.

(C) The painter and the public agree on what is significant.

(D) The painting of the subjects is driven by public demand.

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.23 Vinod has a pre-determined route. Each morning he delivers 37 newspapers to


customers in his neighborhood. It takes Vinod 50 minutes to deliver all the papers.
When Vinod was sick or had other engagements, his friend Tarun, who lives on the
same street delivered the papers on his behalf.

Find the statement(s) that must be TRUE according to the given information.

Space for Figure/Equation, if any:

(A) Vinod and Tarun lived in the same locality.

(B) It was dark outside when Vinod began his delivery.

(C) It took Tarun more than 50 minutes to deliver the papers.

(D) Tarun delivered 37 newspapers to customers.

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.24 Cholera, typhoid, diphtheria and tuberculosis cause huge number of deaths.
Poor quality drinking water has always been the world’s greatest single carrier of
sickness. Disease is transmitted when sewage and drinking water come into contact.
Children are particularly vulnerable. In some of the poorest countries the infant
mortality rate is high. The separation of sewage and the supply of clean drinking
water are the domain of civil engineers, and their work makes a significant
contribution to public health. That contribution was recognized when public
sanitation was voted the greatest medical breakthrough, beating the discoveries
including antibiotics and vaccines in a poll organized by the British Medical
Journal.

Identify the statement(s), which is/are NOT TRUE according to the passage.

Space for Figure/Equation, if any:

(A) Children are less prone to water borne diseases.

(B) The infant mortality rate was high in economically weaker countries.

(C) The provision of sewage and drinking water should be adequately separated from
each other.

(D) The literature states that the public health and sanitation was never given its due
importance.

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q. 25 Shark’s teeth have evolved to correspond to the diet of each particular species of
shark. Consequently, the teeth of the great white shark bear little resemblance to
those of the bull shark or nurse shark. There were essentially four different shark
diets and thus four varieties of shark teeth. Sharks that feed on fish have needle like
teeth, perfect for spearing and ripping. Sharks that eat mammals such as seals and
sea lions have heavy, serrated teeth, typically triangular on the upper jaw and
pointed on the lower jaw. Shark that feed in the benthic zone of the ocean have
flattened teeth for crushing the shell of the creatures they find scuttling in the sand
or clinging to rocks. Sharks that bask have teeth that are largely non-functional;
these sharks filter food from the water by passing it through their gills.

Which of the following is/are the CORRECT inference(s) as per the passage?

Space for Figure/Equation, if any:

(A) Shark’s teeth are not specially designed for slaughter.

(B) The shape of the shark’s teeth relates to its prey.

(C) Some species of sharks filter food through their gills.

(D) Shark’s teeth relate to its diet.

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q. 26 A particular school management wants to contact all parents, all businessmen and
all engineers. The following statistics are available with the school.

Businessmen = 50

Engineers = 25

Parents = 2500

Businessmen who are engineers = 0

Businessmen who are parents = 25

Engineers who are parents = 15

The number of people needs to be contacted are _______ .

Space for Figure/Equation, if any:

Page 21
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

XH-C1 (Q.27 – Q.35 Carry ONE mark Each)

Q.27 Suppose that a firm has a technology represented by the following production
function:

𝑌(𝐾, 𝐿) = 𝐾 𝐿

where K denotes capital, L denotes labour, Y denotes the maximum output that is
possible to produce using capital K and labour L. 𝑥 and 𝑦 are two positive real
numbers. It is also known that the production function satisfies constant returns to
scale. Then which of the following is true?

(A) 𝑥 + 𝑦 = 0.5

(B) 𝑥+𝑦 =1

(C) 𝑥 + 𝑦 = 1.5

(D) 𝑥+𝑦 =2

Q.28 The Human Development Index (HDI), as reported by the United Nations
Development Program, is based on three components. Two of these components
are per-capita income and a measure of educational attainment of society. The
third component is

(A) Gini coefficient

(B) percentage of population who have access to safe drinking water

(C) percentage of population who work in non-agricultural sector

(D) life expectancy at birth

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.29 Suppose we estimate the following regression equation:

𝑙𝑛( 𝑥 ) = 𝛼 + 𝛼 𝑙𝑛( 𝑦 ) + 𝜀 , 𝛼 ,𝛼 > 0

where 𝑥 and 𝑦 are some variables. 𝛼 and 𝛼 are the intercept and the slope,
respectively. 𝜀 is the residual term. What is the interpretation of the coefficient 𝛼 ?

(A) A 1% increase in 𝑦 causes a 𝛼 % increase in 𝑥

(B) A 1% increase in 𝑦 causes a 𝛼 × 0.01 unit increase in 𝑥

(C) A one unit increase in 𝑦 causes a 100 × 𝛼 % increase in 𝑥

(D) A one unit increase in 𝑦 causes a 𝛼 unit increase in 𝑥

Q.30 Consider the following system of equations in three variables 𝑥, 𝑦, 𝑧:

−𝑥 − 𝑦 − 𝑧 = 3

𝑥 + 𝑦 + 𝑧 = 10

2𝑥 − 3𝑦 = 6

This system of equations has

(A) no combination of values of (𝑥, 𝑦, 𝑧) that satisfy this system simultaneously

(B) only one combination of values of (𝑥, 𝑦, 𝑧) that satisfy this system simultaneously

(C) only two combinations of values of (𝑥, 𝑦, 𝑧) that satisfy this system
simultaneously

(D) infinitely many combinations of values of (𝑥, 𝑦, 𝑧) that satisfy this system
simultaneously

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.31 Which of the following models appropriately explains the fluctuations in potential
output and long-run aggregate supply by understanding the shocks to productivity
or the willingness of the worker?

(A) Solow growth model

(B) Real business cycle model

(C) IS-LM model

(D) Harrod-Domar Model

Q.32 The change in equilibrium output for an equal amount of change in government
expenditure and tax revenue is linked to which one of the following multipliers?

(A) Expenditure multiplier

(B) Balanced Budget multiplier

(C) Lum-sum tax multiplier

(D) Trade multiplier

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.33 Solaris is a firm that can install solar panels at an airport to generate electricity for
the airport’s usage. The company claims that in 70 percent of all airports where its
solar panels are installed, an airport’s electricity bill is reduced by at least 40
percent. The probability that an airport’s electricity bill is reduced by at least 40
percent, in seven out of ten airports where the company’s solar panels are
installed, equals approximately:

(A) 0.082

(B) 0.002

(C) 0.490

(D) 0.267

Q.34 IndiaSMart is a retail shop that accepts either a Rupay credit card, or a Visa credit
card. 31 percent of IndiaSMart’s customers carry a Rupay credit card, 44 percent
of its customers carry a Visa credit card, while 18 percent of its customers carry a
Rupay credit card as well as a Visa credit card. What is the probability that a
customer carries at least one of the two, i.e. either a Rupay or a Visa credit card?

(A) 0.75

(B) 0.93

(C) 0.57

(D) 0.49

Page 25
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.35 What is the user cost of capital for a firm when the rate of depreciation of machine
is 20% and the cost of financial capital is 15%?

(A) 37%

(B) 50%

(C) 35%

(D) 31%

Q.36 Which among the following Gini coefficients exhibits the highest equality?

(A) 0.1

(B) 0.2

(C) 0.5

(D) 0.6

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.37 Let 𝑓(𝑥, 𝑦) be a continuously differentiable homogenous function of degree 4.


Which of the following is necessarily true?

(A) 𝜕𝑓(𝑥, 𝑦) 𝜕𝑓(𝑥, 𝑦)


𝑥 +𝑦 = 𝑓(𝑥, 𝑦)
𝜕𝑥 𝜕𝑦

(B) 𝜕𝑓(𝑥, 𝑦) 𝜕𝑓(𝑥, 𝑦)


𝑥 +𝑦 = 2𝑓(𝑥, 𝑦)
𝜕𝑥 𝜕𝑦

(C) 𝜕𝑓(𝑥, 𝑦) 𝜕𝑓(𝑥, 𝑦)


𝑥 +𝑦 = 4𝑓(𝑥, 𝑦)
𝜕𝑥 𝜕𝑦

(D) 𝜕𝑓(𝑥, 𝑦) 𝜕𝑓(𝑥, 𝑦)


𝑥 +𝑦 = 8𝑓(𝑥, 𝑦)
𝜕𝑥 𝜕𝑦

Q.38 Which of the following committees was set-up to address issues related to capital
account convertibility in India?

(A) Tandon Committee

(B) Abid Hussain Committee

(C) Tarapore Committee

(D) Percy Mistry Committee

Page 27
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.39 The demand curve for tea in Borduria is given by

𝐷(𝑃) = 40 − 2𝑃

and the domestic supply curve of tea in Borduria is given by

𝑆(𝑃) = 𝑃

Here 𝐷(𝑃) denotes quantity demanded when price is P and 𝑆(𝑃) is quantity
supplied by domestic producers at price P. Tea is traded in a competitive world
market and imported into Borduria at a price of 9 per unit. Initially there was no
restriction on trade. However, as a result of lobbying by the domestic suppliers,
the Bordurian government imposes a tariff of 3 per unit on each unit imported. As
a result of the tariff, import of tea decreased by how many units?

(A) 2

(B) 3

(C) 8

(D) 9

Q.40 Bretton Woods agreement gave birth to the following organization:

(A) GATT

(B) RBI

(C) NAFTA

(D) ASEAN

Page 28
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.41 Which one of the following is a test of heteroscedastity?

(A) White test

(B) Jarque-Bera test

(C) Breusch-Godfrey test

(D) Ljung-box test

Q.42 The law that explains the relationship between income growth and the size of
government expenditure is appropriately linked to:

(A) Wagner’s law

(B) Okun’s law

(C) Walras law

(D) Ricardian equivalence

Q.43 As per recent Economic Survey, how many states and Union Territories (UTs) are
driven by services sector in India?

(A) 15

(B) 19

(C) 25

(D) 21

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.44 An economy is characterized by the following production function:

. .
𝑌 = 𝐴𝐾 𝐿

where K denotes capital, L denotes labour, A denotes the total factor productivity
and Y denotes output produced. All capital and labour are fully employed.
Suppose that the growth rate of labour is 1%, the growth rate of capital is 4%, and
the growth rate of output is 4%. The growth rate of total factor productivity A is

(A) 1.5 %

(B) 1.75%

(C) 2.25%

(D) 2.5%

Page 30
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)
Q.45 – Q.65 Carry TWO marks Each

Q.45 Suppose a firm has the following production function:

𝑓(𝑥 , 𝑥 , 𝑥 , 𝑥 ) = 𝑚𝑖𝑛{𝑥 , 𝑥 } + 𝑚𝑖𝑛{𝑥 , 𝑥 }

The per unit cost of input 𝑥 is given by 𝑤 , where 𝑖 = 1, 2, 3, 4. Suppose that


𝑤 = 1, 𝑤 = 5, 𝑤 = 3, and 𝑤 = 6. If the firm is minimizing cost, which of the
following input choices by the firm can be observed?

(A) 𝑥 > 0, 𝑥 = 0, 𝑥 > 0, 𝑥 = 0

(B) 𝑥 > 0, 𝑥 > 0, 𝑥 = 0, 𝑥 = 0

(C) 𝑥 > 0, 𝑥 = 0, 𝑥 = 0, 𝑥 > 0

(D) 𝑥 = 0, 𝑥 = 0, 𝑥 > 0, 𝑥 > 0

Q.46 Suppose an econometrician had specified the following regression:

𝑦 =𝛽 +𝛽 𝑧 +𝛽 𝑧 +𝛽 𝑧 +𝜀

but a researcher estimated the following regression:

𝑦 =𝛽 +𝛽 𝑧 +𝛽 𝑧 +𝛽 𝑧 +𝛽 𝑧 +𝜀

What will be the consequence of including the irrelevant variable on the estimated
coefficients?

(A) Coefficient estimates will be unbiased, consistent but inefficient

(B) Coefficient estimates will be consistent, asymptotically efficient but biased

(C) Coefficient estimates will be inconsistent and efficient

(D) Coefficient estimates will be biased, consistent and efficient

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.47 Okun’s law says that a 1% increase in unemployment for one year is associated
with a 2% decrease in GDP growth. Suppose an economy has the following
expectations augmented Phillips curve:

𝜋 = 𝜋 − 𝛽(𝑈 − 𝑈 ), 𝛽 > 0

where 𝜋 and 𝜋 are the inflation and expected inflation rates, respectively. 𝑈 and
𝑈 are the unemployment and natural rate of unemployment, respectively. 𝛽
measures sensitivity of inflation to unemployment gap. When 𝛽 = 2, by what
percentage does output fall short of full-employment given that the inflation rate,
expected inflation rate and natural rate of unemployment are 8%, 10% and 6%,
respectively?

(A) 2

(B) 4

(C) 6

(D) 8

Q.48 Let f(x) be the probability distribution function of a random variable X, where

f(x) = (5x4/64) if −2 < x < 2

= 0 otherwise

Let │∙│ denote the modulus function. Then, P (│X│ < 1) and P (X2 < 3) are given
by (respectively):

(A) (1/32) and 9(√3/32)

(B) (5/64) and 5(√3/32)

(C) (1/64) and (√3/32)

(D) 2(√3/32) and (1/32)

Page 32
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.49 Liquidity Adjustment Facility (LAF) uses the following instruments:

(A) Call Money Rate and Mumbai Inter-bank Offered Rate

(B) Repo Rate and Reverse Repo Rate

(C) Bank Rate and Statutory Liquidity Ratio

(D) Cash Reserve Ratio and Prime Lending Rate

Q.50 What is the weightage of manufacturing sector in the Index of Industrial


Production (IIP) during 2020-2021?

Note: numbers are in approximate values

(A) 78%

(B) 81%

(C) 65%

(D) 71%

Page 33
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.51 The curve that explains the relationship between tax rate and tax revenue is known
as:

(A) Laffer curve

(B) Engle curve

(C) Beveridge curve

(D) Phillips curve

Q.52 Suppose the estimated consumption equation of an economy is:

𝐶 = 40 + 𝛽𝑌

where 𝑌 is the personal disposable income, 𝛽 is the marginal propensity to


consume (MPC). Government expenditure (G) is given as 90. Total tax (𝑇 )
received is 𝛿𝑌, where Y is aggregate output or real income and 𝛿 is tax to real
income proportionality factor. Autonomous investment (𝐼 ) is given as 80. What
are the tax revenue and budget surplus of the government when 𝛽 = 0.75 and 𝛿 =
0.20? All units are measured in constant rupees.

(A) Tax revenue = Rs. 105 and surplus = Rs. 15

(B) Tax revenue = Rs. 118 and surplus = Rs. 28

(C) Tax revenue = Rs. 110 and surplus = Rs. 20

(D) Tax revenue = Rs. 125 and surplus = Rs. 35

Page 34
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.53 Consider a two-period consumption model in which a representative household


lives for two periods only. In period 1, he earns income 𝑦 and consumes 𝑐 . In
period 2, he earns 𝑦 and consumes 𝑐 . He can borrow and lend at the same rate of
interest (r). His lifetime utility function is as follows:

𝑈(𝑐 , 𝑐 ) = ln (𝑐 ) + 𝛽 𝑙𝑛( 𝑐 )

where 𝛽 > 0 measures the sensitivity of future period’s consumption. What will
be the marginal propensity to consume of current consumption, i.e. ?

(A) 1
1+𝛽

(B) 1
1+𝛽

(C) 𝑦
1+𝛽

(D) y1
1  2

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q. 54 Suppose an investigator has specified the following simultaneous equation model:

y1,t  1,0  1,2 y2,t   2 M t   3 Kt  ut (1)

y2,t   2,0   2,1 y1,t   3 I t  t (2)

where y1,t and y2,t are endogenous variables. 𝑀 , 𝐾 and 𝐼 are predetermined
variables. 𝑢 and 𝑣 are residual terms. Based on the order condition of
identification, which one of the following statements are correct?

(A) Equations (1) and (2) are exactly identified

(B) Equation (1) is exactly identified and equation (2) is over-identified

(C) Equation (1) is over-identified and equation (2) is exactly identified

(D) Both the equations are under-identified

Page 36
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.55 There are two regions in a country. The demand for chocolates in region 1 is given
by

𝑄 (𝑃) = 100 − 𝑃

and the demand for chocolates in region 2 is given by

𝑄 (𝑃) = 200 − 𝑃

where 𝑄 (𝑃) and 𝑄 (𝑃) denote the demand for chocolates in region 1 and 2
respectively at a price P. There is only one seller who is licensed to sell
chocolates in the country. Suppose the seller sets a price of 𝑃 = 125. The total
demand for chocolates in the country at this price is

(A) 50

(B) 75

(C) 100

(D) 125

Page 37
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.56 A producer manufactures batteries by using techniques I and II. The capacities (in
ampere hours) of 12 randomly selected batteries manufactured by using technique
I are: 140, 132, 136, 142, 138, 150, 154, 150, 152, 136, 144 and 142. Moreover,
the capacities (in ampere hours) of 14 randomly selected batteries manufactured
by using technique II are: 144, 134, 132, 130, 136, 146, 140, 128, 131, 128, 150,
137, 130 and 135.

Suppose that battery capacities manufactured by using techniques I and II are


normally distributed, with unknown means, µI and µII respectively, and an
unknown common variance σ2. Consider the null hypothesis H0: (µI − µII) = 
ampere hours.

For which of the following values of  should the null hypothesis H0 be accepted,
against the alternative hypothesis H1: (µI − µII) ≠  ampere hours, at 10% level of
significance?

Note that if Z is a standard normal variate, then: P(Z ≤ 1.282) = 0.900,

P(Z ≤ 1.645) = 0.950, P(Z ≤ 1.960) = 0.975 and P(Z ≤ 2.326) = 0.990

Further, if a random variable T follows the Student’s t-distribution, with degrees


of freedom r, then the α-percentile values tα,r for various values of α and r are
given by (where P(T ≤ tα,r) = α):

t0.90,24 = 1.318, t0.90,25 = 1.316, t0.90,26 = 1.315, t0.95,24 = 1.711, t0.95,25 = 1.708, t0.95,26
= 1.706, t0.975,24 = 2.064, t0.975,25 = 2.060, t0.975,26 = 2.056.

(A)  =4

(B) =7

(C)  = 10

(D)  = 13

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GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.57 Tom and Jerry both arrive at a petrol pump. Without worrying about price, Tom
says, “I want 10 liters of petrol.” Also, without worrying about price, Jerry says, “I
want petrol worth 1000 rupees.” The own price elasticities of demand for Tom
(denoted by 𝜀 ) and Jerry (denoted by 𝜀 ) are:

(A) 𝜀 = 0, 𝜀 = −∞

(B) 𝜀 = 0, 𝜀 = −1

(C) 𝜀 = −∞, 𝜀 = 0

(D) 𝜀 = −1, 𝜀 = 0

Q.58 Which of the following variables are pushed upwards by ‘Seigniorage’?

(A) Money supply

(B) Inflation

(C) Tax rate

(D) Interest rate

Page 39
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.59 Suppose Raju enters the job market at age 25 and earns annual income of Rs.
6000. He retires at age 65 and his life expectancy is 75 years. He does not own
any assets. Assume that Raju consumes annual income uniformly over his
lifetime. What will be his average propensity to consume during employment
years?

(A) 0.90

(B) 0.80

(C) 0.50

(D) 0.40

Q.60 A monopolist faces the following inverse demand function:

𝑃 = 40 − 𝑄,

where P denotes price and Q denotes quantity. The monopolist has zero fixed cost
and a marginal cost of 5 per unit of output produced. The monopolist aims to
maximize profit. Suppose the government imposes a tax of 5 per unit of output on
the monopolist. As a result, the price charged by the profit-maximizing
monopolist to the consumer increases by:

(A) 0

(B) 2.5

(C) 5

(D) 10

Page 40
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.61 In the flexible exchange rate environment with perfect capital mobility, a fiscal
stimulus will be linked to which of the following statements?

(A) Fiscal policy increases the domestic outcome

(B) Fiscal policy does not increase the domestic output

(C) Fiscal policy leads domestic exports to fall

(D) Fiscal policy appreciates the domestic currency

Q.62 Consider a lottery with two possible outcomes:

 Rupees 100 with probability 0.6


 Rupees 50 with probability 0.4

The maximum amount that a risk-neutral person would be willing to pay to play
the above lottery equals Rupees (in integer).

Q.63 Mr. Sharma’s consumption preference for tea (denoted by 𝑥) and sugar (denoted
by 𝑦) is given by the utility function

𝑈(𝑥, 𝑦) = 𝑚𝑖𝑛{𝑥, 2𝑦}

The price per unit of tea is 10 and the price per unit of sugar is 10. Mr. Sharma’s
total income is 900.

The optimum quantity of tea purchased by Mr. Sharma equals (in


integer).

Page 41
GATE 2022 Humanities and Social Sciences - Economics (XH-C1)

Q.64 Suppose 𝛼 is a real number between 0 and 1. Rohit is choosing 𝑥 and 𝑦 to


maximize the following utility function:

𝑈(𝑥, 𝑦) = 𝑥 + 2𝑥𝑦 + 𝑦 + 4𝛼 + 8𝛼 + 10

subject to the following constraints:

2𝑥 + 𝑦 = 10,
𝑥, 𝑦 ≥ 0

Then the optimal value of 𝑦 chosen by Rohit is (in integer).

Q.65 In a competitive market for dry-cleaning, the inverse market demand function is
given by

𝑃 = 100 − 𝑄

where P denotes price and Q denotes quantity. The (private) marginal cost (MC)
of production for all the dry-cleaning firms together is given by

𝑀𝐶 = 20 + 2𝑄

The market pollution generated by the dry-cleaning processes of all firms creates
external damages given by the marginal external cost (MEC):

𝑀𝐸𝐶 = 2𝑄

The socially efficient output of dry-cleaning is (in integer).

Page 42
Q. No. Session Question Subject Key/Range Mark
Type Name
1 4 MCQ GA C 1
2 4 MCQ GA D 1
3 4 MCQ GA C 1
4 4 MCQ GA C 1
5 4 MCQ GA C 1
6 4 MCQ GA B 2
7 4 MCQ GA D 2
8 4 MCQ GA A 2
9 4 MCQ GA C 2
10 4 MCQ GA C 2
11 4 MCQ XH-B1 B 1
12 4 MCQ XH-B1 C 1
13 4 MCQ XH-B1 C 1
14 4 MCQ XH-B1 B 1
15 4 MCQ XH-B1 A 1
16 4 MSQ XH-B1 B, C 1
17 4 NAT XH-B1 33 to 33 1
18 4 MCQ XH-B1 A 2
19 4 MCQ XH-B1 D 2
20 4 MCQ XH-B1 B 2
21 4 MCQ XH-B1 A 2
22 4 MCQ XH-B1 A OR D 2
23 4 MSQ XH-B1 A, D 2
24 4 MSQ XH-B1 A, D OR A, B, D 2
25 4 MSQ XH-B1 B, C, D 2
26 4 NAT XH-B1 2535 to 2535 2
27 4 MCQ XH-C1 B 1
28 4 MCQ XH-C1 D 1
29 4 MCQ XH-C1 A 1
30 4 MCQ XH-C1 A 1
31 4 MCQ XH-C1 B 1
32 4 MCQ XH-C1 B 1
33 4 MCQ XH-C1 D 1
34 4 MCQ XH-C1 C 1
35 4 MCQ XH-C1 C 1
36 4 MCQ XH-C1 A 1
37 4 MCQ XH-C1 C 1
38 4 MCQ XH-C1 C 1
39 4 MCQ XH-C1 C 1
40 4 MCQ XH-C1 A 1
41 4 MCQ XH-C1 A 1
42 4 MCQ XH-C1 A 1
43 4 MCQ XH-C1 A 1
44 4 MCQ XH-C1 C 1
45 4 MCQ XH-C1 B 2
46 4 MCQ XH-C1 A 2
47 4 MCQ XH-C1 A 2
48 4 MCQ XH-C1 A 2
49 4 MCQ XH-C1 B 2
50 4 MCQ XH-C1 A 2
51 4 MSQ XH-C1 A 2
52 4 MSQ XH-C1 A 2
53 4 MSQ XH-C1 A 2
54 4 MSQ XH-C1 B 2
55 4 MSQ XH-C1 B 2
56 4 MSQ XH-C1 A, B, C 2
57 4 MSQ XH-C1 B 2
58 4 MSQ XH-C1 A, B 2
59 4 MSQ XH-C1 B 2
60 4 MSQ XH-C1 B 2
61 4 MSQ XH-C1 B, C, D 2
62 4 NAT XH-C1 80 to 80 2
63 4 NAT XH-C1 60 to 60 2
64 4 NAT XH-C1 10 to 10 2
65 4 NAT XH-C1 16 to 16 2

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