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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. 90.90
- b)Rs. 43.25
- c)Rs. 44.28
- d)Rs 45.45
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
During a certain period the cost of living index number goes up from 1...
Firstly, we will calculate by how much the living index number increase, i.e.
200/110 = 1.818
Now, we'll multiply this factor by the wages before increase, so as to calculate the final increased wages for maintaining the right balance.
Rs 325 * 1.818 = Rs. 590.90
Hence, the real wages decrease by Rs.590.90 - Rs.500 = Rs.90.90
Most Upvoted Answer
During a certain period the cost of living index number goes up from 1...
Explanation:
To find the decrease in real wages, we need to compare the increase in the cost of living index with the increase in salary.
Step 1: Calculate the percentage increase in the cost of living index.
Percentage increase = (New index - Old index) / Old index * 100
Percentage increase = (200 - 110) / 110 * 100
Percentage increase = 90 / 110 * 100
Percentage increase = 81.82%
Step 2: Calculate the increase in salary.
Increase in salary = New salary - Old salary
Increase in salary = 500 - 325
Increase in salary = 175
Step 3: Calculate the decrease in real wages.
Decrease in real wages = (Increase in salary / Percentage increase) * 100
Decrease in real wages = (175 / 81.82) * 100
Decrease in real wages = 213.64
Step 4: Convert the decrease in real wages to Rs.
Decrease in real wages = 213.64 * (325 / 100)
Decrease in real wages = 69.36
Therefore, the decrease in real wages is approximately Rs. 69.36.
Conclusion:
The given answer option 'A' Rs. 90.90 is incorrect. The correct decrease in real wages is Rs. 69.36.
To find the decrease in real wages, we need to compare the increase in the cost of living index with the increase in salary.
Step 1: Calculate the percentage increase in the cost of living index.
Percentage increase = (New index - Old index) / Old index * 100
Percentage increase = (200 - 110) / 110 * 100
Percentage increase = 90 / 110 * 100
Percentage increase = 81.82%
Step 2: Calculate the increase in salary.
Increase in salary = New salary - Old salary
Increase in salary = 500 - 325
Increase in salary = 175
Step 3: Calculate the decrease in real wages.
Decrease in real wages = (Increase in salary / Percentage increase) * 100
Decrease in real wages = (175 / 81.82) * 100
Decrease in real wages = 213.64
Step 4: Convert the decrease in real wages to Rs.
Decrease in real wages = 213.64 * (325 / 100)
Decrease in real wages = 69.36
Therefore, the decrease in real wages is approximately Rs. 69.36.
Conclusion:
The given answer option 'A' Rs. 90.90 is incorrect. The correct decrease in real wages is Rs. 69.36.
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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. 90.90b)Rs. 43.25c)Rs. 44.28d)Rs 45.45Correct answer is option 'A'. Can you explain this answer?
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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. 90.90b)Rs. 43.25c)Rs. 44.28d)Rs 45.45Correct 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. 90.90b)Rs. 43.25c)Rs. 44.28d)Rs 45.45Correct 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. 90.90b)Rs. 43.25c)Rs. 44.28d)Rs 45.45Correct answer is option 'A'. Can you explain this answer?.
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. 90.90b)Rs. 43.25c)Rs. 44.28d)Rs 45.45Correct 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. 90.90b)Rs. 43.25c)Rs. 44.28d)Rs 45.45Correct 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. 90.90b)Rs. 43.25c)Rs. 44.28d)Rs 45.45Correct answer is option 'A'. Can you explain this answer?.
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