Gce Model Questions Vol1 2019 Economics Question 20

Practice objective / multiple choice question 20 from the 2019 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 20 GCE_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • objective

A worker earned a nominal weekly wage of ₦15 000 in 2022 when the Consumer Price Index (CPI) was 150. In 2023 the CPI rose to 157 and the nominal wage increased to ₦15 600. (a) Compute the inflation rate between 2022 and 2023. (b) Compute the percentage increase in the nominal wage. (c) Determine the percentage change in the real wage (using the CPI as the price index) and state whether the real wage rose or fell.

Answer Options

A. Inflation = 5.00 %; nominal wage increase = 4.00 %; real wage fell by 0.33 %
B. Inflation = 4.67 %; nominal wage increase = 4.00 %; real wage rose by 0.64 %
C. Inflation = 4.67 %; nominal wage increase = 3.75 %; real wage fell by 0.92 %
Correct Answer D. Inflation = 4.67 %; nominal wage increase = 4.00 %; real wage fell by 0.64 %
Correct Answer
D
Correct Option:
Inflation = 4.67 %; nominal wage increase = 4.00 %; real wage fell by 0.64 %

About This Question

This is Gce Model Questions Vol1 2019 Economics Question 20. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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