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During a certain period the consumer price index number goes up from 150 to 220and the salary of the worker is raised from 350 to Rs 400 the worker does not really get gain By what amount must the wages be furtherincreased to maintain the current standard of living?
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During a certain period the consumer price index number goes up from 1...
Calculation of Real Wage Increase:
In order to calculate the real wage increase, we need to adjust the worker's salary for the increase in the consumer price index (CPI). This adjustment helps us understand how much the worker's purchasing power has changed due to inflation.
Initial Salary:
- Initial salary = Rs 350
- Initial CPI = 150
Final Salary:
- Final salary = Rs 400
- Final CPI = 220
Real Wage Calculation:
- Real wage = (Nominal wage / CPI) * 100
- Initial real wage = (350 / 150) * 100 = 233.33
- Final real wage = (400 / 220) * 100 = 181.82
Difference in Real Wage:
- Difference = Final real wage - Initial real wage
- Difference = 181.82 - 233.33 = -51.51
Further Wage Increase:
To maintain the current standard of living and restore the worker's real wage to its initial level, the worker's wage must be further increased by Rs 51.51. This additional increase will help the worker cope with the rise in prices and maintain their purchasing power.
Conclusion:
In conclusion, the worker must receive an additional wage increase of Rs 51.51 to offset the impact of inflation and maintain their standard of living. It is essential to consider the real wage changes when adjusting salaries to ensure that workers are not negatively affected by rising prices.
In order to calculate the real wage increase, we need to adjust the worker's salary for the increase in the consumer price index (CPI). This adjustment helps us understand how much the worker's purchasing power has changed due to inflation.
Initial Salary:
- Initial salary = Rs 350
- Initial CPI = 150
Final Salary:
- Final salary = Rs 400
- Final CPI = 220
Real Wage Calculation:
- Real wage = (Nominal wage / CPI) * 100
- Initial real wage = (350 / 150) * 100 = 233.33
- Final real wage = (400 / 220) * 100 = 181.82
Difference in Real Wage:
- Difference = Final real wage - Initial real wage
- Difference = 181.82 - 233.33 = -51.51
Further Wage Increase:
To maintain the current standard of living and restore the worker's real wage to its initial level, the worker's wage must be further increased by Rs 51.51. This additional increase will help the worker cope with the rise in prices and maintain their purchasing power.
Conclusion:
In conclusion, the worker must receive an additional wage increase of Rs 51.51 to offset the impact of inflation and maintain their standard of living. It is essential to consider the real wage changes when adjusting salaries to ensure that workers are not negatively affected by rising prices.
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During a certain period the consumer price index number goes up from 150 to 220and the salary of the worker is raised from 350 to Rs 400 the worker does not really get gain By what amount must the wages be furtherincreased to maintain the current standard of living?
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During a certain period the consumer price index number goes up from 150 to 220and the salary of the worker is raised from 350 to Rs 400 the worker does not really get gain By what amount must the wages be furtherincreased to maintain the current standard of living? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about During a certain period the consumer price index number goes up from 150 to 220and the salary of the worker is raised from 350 to Rs 400 the worker does not really get gain By what amount must the wages be furtherincreased to maintain the current standard of living? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for During a certain period the consumer price index number goes up from 150 to 220and the salary of the worker is raised from 350 to Rs 400 the worker does not really get gain By what amount must the wages be furtherincreased to maintain the current standard of living?.
During a certain period the consumer price index number goes up from 150 to 220and the salary of the worker is raised from 350 to Rs 400 the worker does not really get gain By what amount must the wages be furtherincreased to maintain the current standard of living? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about During a certain period the consumer price index number goes up from 150 to 220and the salary of the worker is raised from 350 to Rs 400 the worker does not really get gain By what amount must the wages be furtherincreased to maintain the current standard of living? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for During a certain period the consumer price index number goes up from 150 to 220and the salary of the worker is raised from 350 to Rs 400 the worker does not really get gain By what amount must the wages be furtherincreased to maintain the current standard of living?.
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