NABTEB - ECONOMIC- ANSWERS
NABTEB-ECONOMICS-ANSWERS OBJ AND THEORY COMPLETED OBJ 1-10:BDBABBDDAB 11-20:DBBAADBBAB 21-30:DCBBADACBA 31-40:CDCCDCAABC 41-50:BBCDBCDBAA ================================ (1a) Price index = current year /base year × 100 For Commodity A = 25/20 × 100 = 128% For Commodity B = 10/5 × 100 = 200% For Commodity C = 30/15 × 100 = 200% For Commodity D = 50/40 × 100 = 125% For Commodity E = 450/200 × 100 = 225% (1b) Total prices in 1971 = 25+10+30+50+450 = N565 Total Prices in 1970 = 20+5+15+40+20 = N280 :. Overall price index P.I = 565/280 × 100 = 201.8% (1c) Total prices in 1971 = 25+10+30+50+450 = N565 Total Prices in 1970 = 20+5+15+40+20 = N280 Total prices level between 1970 and 1971 = 565+280 = N845 Total prices level change between 1970 and 1971 = 565-280 = N285 :. General percentage change between 1970 and 1971 price level = 285/845 × 100 = 33.73% (1d) - Inflation : As a result of general increased change in price of commodities, the value of money starts reducing ...