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. With the base year 1960 the C. L. I. in 1972 stood at 250. x was getting a monthly Salary of 500 in 1960 and 750 in 1972. In 1972 to maintain his standard of living in 1960 x has to receive as extra allowances of (a) * 600/- (b) 500/- (c) * 300/- (d) none of these. honetan.?
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. With the base year 1960 the C. L. I. in 1972 stood at 250. x was get...
Solution : 
(b) 500
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. With the base year 1960 the C. L. I. in 1972 stood at 250. x was get...
Calculation of Consumer Price Index (CPI)
Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is used to measure inflation and changes in the cost of living.
To calculate CPI, we need a base year and a reference year. In this case, the base year is 1960 and the reference year is 1972.
Step 1: Calculate the CPI for the reference year
CPI = (Price of the market basket in the reference year / Price of the market basket in the base year) x 100
Given that the CPI in 1972 is 250, we can substitute the values into the formula:
250 = (Price of the market basket in 1972 / Price of the market basket in 1960) x 100
Step 2: Calculate the price of the market basket in 1972
To find the price of the market basket in 1972, we can rearrange the formula as follows:
Price of the market basket in 1972 = (CPI x Price of the market basket in 1960) / 100
Substituting the values, we get:
Price of the market basket in 1972 = (250 x 500) / 100 = 1250
Step 3: Calculate the extra allowances needed
To maintain the standard of living in 1960, x needs to receive extra allowances in 1972. This can be calculated by finding the difference between the salary in 1972 and the price of the market basket in 1972.
Extra allowances = Salary in 1972 - Price of the market basket in 1972
Extra allowances = 750 - 1250 = -500
Answer: (d) none of these
Explanation:
The negative value of the extra allowances (-500) indicates that x's salary in 1972 is already higher than the price of the market basket in 1972, which means that x's standard of living in 1960 can be maintained without any extra allowances. Therefore, the correct answer is (d) none of these.
Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is used to measure inflation and changes in the cost of living.
To calculate CPI, we need a base year and a reference year. In this case, the base year is 1960 and the reference year is 1972.
Step 1: Calculate the CPI for the reference year
CPI = (Price of the market basket in the reference year / Price of the market basket in the base year) x 100
Given that the CPI in 1972 is 250, we can substitute the values into the formula:
250 = (Price of the market basket in 1972 / Price of the market basket in 1960) x 100
Step 2: Calculate the price of the market basket in 1972
To find the price of the market basket in 1972, we can rearrange the formula as follows:
Price of the market basket in 1972 = (CPI x Price of the market basket in 1960) / 100
Substituting the values, we get:
Price of the market basket in 1972 = (250 x 500) / 100 = 1250
Step 3: Calculate the extra allowances needed
To maintain the standard of living in 1960, x needs to receive extra allowances in 1972. This can be calculated by finding the difference between the salary in 1972 and the price of the market basket in 1972.
Extra allowances = Salary in 1972 - Price of the market basket in 1972
Extra allowances = 750 - 1250 = -500
Answer: (d) none of these
Explanation:
The negative value of the extra allowances (-500) indicates that x's salary in 1972 is already higher than the price of the market basket in 1972, which means that x's standard of living in 1960 can be maintained without any extra allowances. Therefore, the correct answer is (d) none of these.
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. With the base year 1960 the C. L. I. in 1972 stood at 250. x was getting a monthly Salary of 500 in 1960 and 750 in 1972. In 1972 to maintain his standard of living in 1960 x has to receive as extra allowances of (a) * 600/- (b) 500/- (c) * 300/- (d) none of these. honetan.?
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. With the base year 1960 the C. L. I. in 1972 stood at 250. x was getting a monthly Salary of 500 in 1960 and 750 in 1972. In 1972 to maintain his standard of living in 1960 x has to receive as extra allowances of (a) * 600/- (b) 500/- (c) * 300/- (d) none of these. honetan.? 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 . With the base year 1960 the C. L. I. in 1972 stood at 250. x was getting a monthly Salary of 500 in 1960 and 750 in 1972. In 1972 to maintain his standard of living in 1960 x has to receive as extra allowances of (a) * 600/- (b) 500/- (c) * 300/- (d) none of these. honetan.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for . With the base year 1960 the C. L. I. in 1972 stood at 250. x was getting a monthly Salary of 500 in 1960 and 750 in 1972. In 1972 to maintain his standard of living in 1960 x has to receive as extra allowances of (a) * 600/- (b) 500/- (c) * 300/- (d) none of these. honetan.?.
. With the base year 1960 the C. L. I. in 1972 stood at 250. x was getting a monthly Salary of 500 in 1960 and 750 in 1972. In 1972 to maintain his standard of living in 1960 x has to receive as extra allowances of (a) * 600/- (b) 500/- (c) * 300/- (d) none of these. honetan.? 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 . With the base year 1960 the C. L. I. in 1972 stood at 250. x was getting a monthly Salary of 500 in 1960 and 750 in 1972. In 1972 to maintain his standard of living in 1960 x has to receive as extra allowances of (a) * 600/- (b) 500/- (c) * 300/- (d) none of these. honetan.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for . With the base year 1960 the C. L. I. in 1972 stood at 250. x was getting a monthly Salary of 500 in 1960 and 750 in 1972. In 1972 to maintain his standard of living in 1960 x has to receive as extra allowances of (a) * 600/- (b) 500/- (c) * 300/- (d) none of these. honetan.?.
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. With the base year 1960 the C. L. I. in 1972 stood at 250. x was getting a monthly Salary of 500 in 1960 and 750 in 1972. In 1972 to maintain his standard of living in 1960 x has to receive as extra allowances of (a) * 600/- (b) 500/- (c) * 300/- (d) none of these. honetan.?, a detailed solution for . With the base year 1960 the C. L. I. in 1972 stood at 250. x was getting a monthly Salary of 500 in 1960 and 750 in 1972. In 1972 to maintain his standard of living in 1960 x has to receive as extra allowances of (a) * 600/- (b) 500/- (c) * 300/- (d) none of these. honetan.? has been provided alongside types of . With the base year 1960 the C. L. I. in 1972 stood at 250. x was getting a monthly Salary of 500 in 1960 and 750 in 1972. In 1972 to maintain his standard of living in 1960 x has to receive as extra allowances of (a) * 600/- (b) 500/- (c) * 300/- (d) none of these. honetan.? theory, EduRev gives you an
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