Neco Model Questions Vol1 2020 Economics Question 16
Practice objective / multiple choice question 16 from the 2020 Neco Model Questions Vol1 Economics examination.
In 2020 a consumer bought 2 kg of rice, 5 L of cooking oil and 10 loaves of bread. Prices in 2020 were \(\text{rice}=\,\text{₦}200\) per kg, \(\text{oil}=\,\text{₦}500\) per litre and \(\text{bread}=\,\text{₦}150\) per loaf. In 2021 the prices became \(\text{rice}=\,\text{₦}240\), \(\text{oil}=\,\text{₦}560\) and \(\text{bread}=\,\text{₦}165\). The nominal monthly wage rose from \(\text{₦}30{,}000\) to \(\text{₦}33{,}600\).\n\n(a) Compute the Consumer Price Index (CPI) for 2021 relative to 2020.\n(b) Determine the inflation rate for the year.\n(c) Calculate the percentage change in the real wage over the year.
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About This Question
This is Neco Model Questions Vol1 2020 Economics Question 16. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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