JAMB Economics 2014 Objective — Question 31
Question 31 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2014 Objective paper, with the correct answer and a full explanation.
Advertisement
Given a base year and the price index of 175% the following year, which of the following will arise?
- A. The value of money falls by 75%Correct
- B. The cost of living decreases in that year
- C. The cost of living remains unchanged
- D. The value of money rises by 75%
Explanation
If the price index is 175%, it means that the price level has risen by 75%; this implies that the value of money has fallen by 75%.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.