Consider the statement : During a certain period the cost of living index number goes from 110 to 200 and salary of a worker is also raised from ₹3,250 to ₹5,000.
Based on this information, check which of the following options are correct.
(A) Real wage is given by Real wage $=\frac{\text{Actual wage}}{\text{Cost of living index}}×100$
(B) Real wage of $₹3,250=\frac{₹3,250}{200}×100$
(C) Real wage of $₹3,250=\frac{₹3,250}{110}×100$
(D) Real wage of $₹5,000=₹2,600$
(E) The worker actually loses ₹454,50 in real terms
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (C), (E) only
(A) $\text{Real Wage} = \frac{\text{Actual Wage}}{\text{Cost of living index}}×100$
(C) Real wage of $₹3,250=\frac{₹3,250}{110}×100$
(D) Worker's loss = Initial Real wage - final real wage
$=\frac{₹3,250}{110}×100-\frac{₹5,000}{200}×100$
$=₹454.55$