Gce Model Questions Vol1 2021 Economics Question 23

Practice objective / multiple choice question 23 from the 2021 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2021 Economics Objective / Multiple Choice Medium Difficulty
Question 23 GCE_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

In 2022 the Consumer Price Index (CPI) was 108 (base 100 in 2020) and in 2023 it rose to 112. Worker A's nominal annual wage increased from £25,000 to £26,500, whereas Worker B's nominal wage remained at £25,000. Calculate the real‑wage growth for each worker between 2022 and 2023 (expressed as a percentage), and state which worker experienced the larger real‑wage increase.

Answer Options

A. Worker A: +2.3 %; Worker B: -3.7 %; Worker B has the larger increase
B. Worker A: +1.9 %; Worker B: -4.1 %; Worker A has the larger increase
C. Worker A: -0.5 %; Worker B: -2.5 %; Worker B has the larger increase
Correct Answer D. Worker A: +2.3 %; Worker B: -3.7 %; Worker A has the larger increase
Correct Answer
D
Correct Option:
Worker A: +2.3 %; Worker B: -3.7 %; Worker A has the larger increase

About This Question

This is Gce Model Questions Vol1 2021 Economics Question 23. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

View More Gce Model Questions Vol1 2021 Economics Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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