Neco Model Questions Vol1 2017 Economics Question 9

Practice objective / multiple choice question 9 from the 2017 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2017 Economics Objective / Multiple Choice Medium Difficulty
Question 9 NECO_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • objective

The consumer price index (CPI) was 120 in year 1 and rose to 132 in year 2. During the same period a worker's nominal monthly income increased from ₦50,000 to ₦55,000. (a) Compute the inflation rate between the two years, (b) calculate the percentage change in the worker's real income, and (c) state whether the worker is better off in real terms.

Answer Options

Correct Answer A. Inflation = 10 %; Real income change = 0 %; Worker is neither better nor worse off
B. Inflation = 8 %; Real income change = 5 %; Worker is better off
C. Inflation = 10 %; Real income change = 5 %; Worker is better off
D. Inflation = 12 %; Real income change = -2 %; Worker is worse off
Correct Answer
A
Correct Option:
Inflation = 10 %; Real income change = 0 %; Worker is neither better nor worse off

About This Question

This is Neco Model Questions Vol1 2017 Economics Question 9. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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