CAT 2000 — DILR Question 27
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.
When was the lowest level of production of the mining and quarrying sector achieved during the nine year period 1990-1998?
Answer & solution
- A
1996
1993
- C
1990
- D
Cannot be determined
From the graph we can observe that the growth in the mining and quarrying sector becomes negative in the year 1993 for the first time.
∴ Production in 1993 = 1.04 × 1.01 × 1.01 × 0.97 ≈ 1.03 times
This is lower than the value in 1990.
Hence, option (b).