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During a certain period the cost of living index number goes up from 110 to 200 and the salary of a worker is also raised from Rs. 325 to Rs. 500. The worker does not get really gain. Then the real wages decreased by :
  • a)
    Rs. 45.45
  • b)
    Rs. 43.25
  • c)
    Rs. 44.28
  • d)
    None of these
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
During a certain period the cost of living index number goes up from 1...
Solution:

Given that,
Initial Cost of Living Index = 110
Final Cost of Living Index = 200
Initial Salary = Rs. 325
Final Salary = Rs. 500

We know that real wages = (nominal wages / cost of living index) * 100

Initially, the real wages of the worker were:
(325 / 110) * 100 = Rs. 295.45

After the increase in the cost of living index and salary, the real wages of the worker are:
(500 / 200) * 100 = Rs. 250

The decrease in real wages can be calculated as follows:
Decrease = Initial Real Wages - Final Real Wages
= 295.45 - 250
= Rs. 45.45

Therefore, the correct answer is option (a) Rs. 45.45.
Community Answer
During a certain period the cost of living index number goes up from 1...
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During a certain period the cost of living index number goes up from 110 to 200 and the salary of a worker is also raised from Rs. 325 to Rs. 500. The worker does not get really gain. Then the real wages decreased by :a)Rs. 45.45b)Rs. 43.25c)Rs. 44.28d)None of theseCorrect answer is option 'A'. Can you explain this answer?
Question Description
During a certain period the cost of living index number goes up from 110 to 200 and the salary of a worker is also raised from Rs. 325 to Rs. 500. The worker does not get really gain. Then the real wages decreased by :a)Rs. 45.45b)Rs. 43.25c)Rs. 44.28d)None of theseCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about During a certain period the cost of living index number goes up from 110 to 200 and the salary of a worker is also raised from Rs. 325 to Rs. 500. The worker does not get really gain. Then the real wages decreased by :a)Rs. 45.45b)Rs. 43.25c)Rs. 44.28d)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for During a certain period the cost of living index number goes up from 110 to 200 and the salary of a worker is also raised from Rs. 325 to Rs. 500. The worker does not get really gain. Then the real wages decreased by :a)Rs. 45.45b)Rs. 43.25c)Rs. 44.28d)None of theseCorrect answer is option 'A'. Can you explain this answer?.
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