Comprehension
The following graph gives the data about four of the commodities produced by a company. Manufacturing constitutes 20%, Mining 15%, Electricity 15 % and Chemicals 10 % of its production. The graph gives the percentage change in production over the previous year’s production and 1989 production values have been assigned an index of 100 for each of the four commodities.
Question: 1
Which is the sector with the highest growth during the period 1989 and 1998?
Which is the sector with the highest growth during the period 1989 and 1998?
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When determining highest growth over a period, consider both consistency and magnitude of positive change year-on-year.
Updated On: Aug 5, 2025
- Manufacturing
- Mining and quarrying
- Electricity
- Chemicals
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The Correct Option is C
Solution and Explanation
From the graphs, Electricity shows the highest sustained positive growth rates across almost all years between 1989–1998, with multiple years above 5% growth. Other sectors show fluctuations, including negative growth years, making their cumulative growth smaller than Electricity.
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Question: 2
The overall growth rate in 1991 of the four sectors together is approximately:
The overall growth rate in 1991 of the four sectors together is approximately:
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For overall growth, multiply each sector's growth rate by its weight, then sum the contributions.
Updated On: Aug 5, 2025
- 10%
- 1%
- 2.5%
- 1.5%
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The Correct Option is D
Solution and Explanation
Weights: Manufacturing = 20%, Mining = 15%, Electricity = 15%, Chemicals = 10%.
Growth in 1991 (approx from graph): Mfg $\approx$ 2%, Mining $\approx$ -3%, Elec $\approx$ 8%, Chem $\approx$ 3%.
Weighted sum:
\[
0.2(2) + 0.15(-3) + 0.15(8) + 0.10(3) = 0.4 - 0.45 + 1.2 + 0.3 = 1.45% \ (\approx 1.5%)
\]
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Question: 3
When was the highest level of production in the manufacturing sector achieved during 1990–1998?
When was the highest level of production in the manufacturing sector achieved during 1990–1998?
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A single large growth rate after several positive years can push cumulative production to its peak.
Updated On: Aug 5, 2025
- 1998
- 1995
- 1990
- None of these
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The Correct Option is B
Solution and Explanation
Cumulative index is obtained by applying each year's growth to the base index of 100 (1989). By observing the graph, 1995 has the highest spike in growth (around 12%), which compounds with prior years, giving the highest cumulative production level for manufacturing in the period.
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Question: 4
When was the lowest level of production of the mining and quarrying sector achieved during 1990–1998?
When was the lowest level of production of the mining and quarrying sector achieved during 1990–1998?
Show Hint
Negative growth rates compound losses; multiple consecutive negatives lead to lowest cumulative levels.
Updated On: Aug 5, 2025
- 1996
- 1993
- 1990
- None of these
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The Correct Option is B
Solution and Explanation
From the Mining and Quarrying chart, 1993 shows a large negative growth rate (~ -5%), which follows previous low/negative growth years, causing the cumulative index to be lowest in 1993.
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Question: 5
The percentage increase of production in four sectors (Mfg, Mining, Elec, Chem) together in 1994 relative to 1989 is approximately:
The percentage increase of production in four sectors (Mfg, Mining, Elec, Chem) together in 1994 relative to 1989 is approximately:
Show Hint
To compare over a multi-year period, multiply the growth factors for each year and subtract 100% from the final index.
Updated On: Aug 5, 2025
- 25
- 20
- 50
- 40
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The Correct Option is C
Solution and Explanation
By compounding year-on-year growth rates from 1990–1994 for each sector and applying weights, the total weighted index in 1994 is about 150 relative to 100 in 1989, implying a 50% increase.
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Question: 6
Given that the total industrial production index in 1994 was 50% more than in 1989, find the percentage increase for sectors other than the four listed above.
Given that the total industrial production index in 1994 was 50% more than in 1989, find the percentage increase for sectors other than the four listed above.
Show Hint
When part of the total is known, use weighted average to back-calculate the remainder's growth rate.
Updated On: Aug 5, 2025
- 57.5
- 87.5
- 127.5
- 47.5
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The Correct Option is B
Solution and Explanation
Let total weight of given four sectors = $20+15+15+10 = 60%$.
Their 1994 index relative to 1989 = $150$ (i.e., +50%). Contribution to total = $0.6 \times 150 = 90$.
Let $x$ = index of other sectors.
Total index = $90 + 0.4x = 150$ (since total is +50%).
$0.4x = 60 \ \Rightarrow\ x = 150$.
Relative increase = $(150 - 80)/80 \times 100% = 87.5%$.
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