Index NumbersMCQMTP Dec 22 - Series IQuestion 3916 of 197
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Consumer Price Index Number goes up from 100\displaystyle 100 to 200\displaystyle 200 and salary of a worker is also raised from 300\displaystyle 300 to 500\displaystyle 500, then Real Wage is

Options

A300\displaystyle 300
B250\displaystyle 250
C600\displaystyle 600
D350\displaystyle 350
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Correct Answer

Option b250\displaystyle 250

All Options:

  • A300\displaystyle 300
  • B250\displaystyle 250
  • C600\displaystyle 600
  • D350\displaystyle 350

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Detailed Solution & Explanation

We are given: - Current CPI = 200\displaystyle 200 - Current Salary = 500\displaystyle 500 The formula for **real wage** is: Real Wage=Nominal SalaryCPI×100\text{Real Wage} = \frac{\text{Nominal Salary}}{\text{CPI}} \times 100 Substitute the values: Real Wage=500200×100=2.5×100=250\text{Real Wage} = \frac{500}{200} \times 100 = 2.5 \times 100 = 250 Hence, **Option B** is the correct answer.

About This Chapter: Index Numbers

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Construction of Index Numbers, Time Series

This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

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Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

Key Concepts to Understand

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