Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Read the passage carefully and answer the questions based on the passage:

GDP figures and other macroeconomic variables

Suppose a country only produces rice. In the year 2020, it produced 100 Kg of rice. The price was Rs 10 per kg of rice and the GDP at the current price was Rs 1,000. In 2021, the same country will produce 110 Kg of rice at a price of Rs 15 per kg.

What is change in price?

Options:

-15

+5

+10

+15

Correct Answer:

+5

Explanation:

The correct answer is Option (2) → +5

From the passage:

  • Price in 2020 = ₹10 per kg

  • Price in 2021 = ₹15 per kg

Change in price = Price in 2021 - Price in 2020 Change in price = ₹15 - ₹10 = ₹5

Therefore, the change in price is +₹5.