WAEC Economics 2011 Objective — Question 35
Question 35 of 50 from the West African Examinations Council (WAEC) Economics 2011 Objective paper, with the correct answer and a full explanation.
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Which of the following ways has salaries and wages adversely affected your country's economy?
- A. A. Increase in money supply
- B. B. A fall in real incomeCorrect
- C. C. Appreciation in the value of money
- D. D. Increase in employment
Explanation
Real income refers to the purchasing power of money. When there is inflation, one of the direct negative effects is that the purchasing power of money falls.
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