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CAT 2000 — DILR Question 25

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Passage / Data

Answer the following question based on the information given below.

The figures below present annual growth rate, expressed as the % change relative to the previous year, in four sectors of the economy of the Republic of Reposia during the 9 year period from 1990 to 1998. Assume that the index of production for each of the four sectors is set at 100 in 1989. Further, the four sectors manufacturing, mining and quarrying, electricity, and chemicals, respectively, constituted 20%. 15%. 10% and 15% of total industrial production in 1989.

The overall growth rate in 1991 of the four sectors together is approximately

Answer & solution

Correct answer: 1.5%

  • A

    10%

  • B

    1%

  • C

    2.5%

  • 1.5%

Solution

In 1989, the production of the Manufacturing, Mining and Quarrying, Electricity and Chemical sectors is in the ratio 20 : 15 : 10 : 15

Let the productions of these sectors in 1989 be 20x, 15x, 10x and 15x respectively.

The productions of these sectors in 1990 and 1991 are as in the following table:

​​​​​​​

∴ Growth Rate in 1991 in the four sectors is = 65.33x-64.26x64.26x×100

= 1.67%

The closest option is 1.5%

Hence, option (d).

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CAT 2000 DILR Q25: The overall growth rate in 1991 of the four sectors together is approximately — Solution | TheCATExam