CBSE 2016 Class 12 Economics Outside Delhi Set-2

Question : 3 of 5

Marks: +1, -0

If nominal income is

₹ 500

and price index is 125 , calculate real income.

Solution:

Real Income

=(

Nominal income

\div

Price index of current year)

\times

Price Index of base year.
Let the base year's price index be 100 .

\;\text " Real Income "\;\;=(500 ÷ 125) × 100

\;=4 × 100

\;=₹ 400

Go to Question:

Prev Question

Next Question