Comprehension

The following table gives the national income and the population of a country for the years 1984 – 85 to 1989 – 90. For each o the following questions choose the best alternative:

Question: 1

The increase in the per capita income compared to the previous year is lowest for the year:

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Always compute per capita income first before calculating growth rates to avoid direct percentage errors.
Updated On: Aug 7, 2025
  • 1985-86
  • 1986-87
  • 1987-88
  • 1989-90
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The Correct Option is A

Solution and Explanation

Step 1: Formula for Per Capita Income \[ \text{Per Capita Income} = \frac{\text{National Income}}{\text{Population}} \] Step 2: Calculate for each year 1984-85: $\frac{229225}{74.0} \approx 3097.63$
1985-86: $\frac{261174}{75.0} \approx 3482.32$
1986-87: $\frac{291556}{77.0} \approx 3786.43$
1987-88: $\frac{329934}{78.5} \approx 4202.35$
1988-89: $\frac{388539}{80.0} \approx 4856.74$
1989-90: $\frac{433500}{81.5} \approx 5325.15$
Step 3: Find percentage increase from previous year 1985-86: $\frac{3482.32 - 3097.63}{3097.63} \times 100 \approx 12.41\%$
1986-87: $\frac{3786.43 - 3482.32}{3482.32} \times 100 \approx 8.73\%$
1987-88: $\frac{4202.35 - 3786.43}{3786.43} \times 100 \approx 10.98\%$
1988-89: $\frac{4856.74 - 4202.35}{4202.35} \times 100 \approx 15.57\%$
1989-90: $\frac{5325.15 - 4856.74}{4856.74} \times 100 \approx 9.65\%$
Step 4: Lowest increase = \(\mathbf{8.73\%}\) in 1986-87. But the question asks for lowest increase in per capita income compared to the previous year, so among given choices, the lowest is actually 1986-87, hence (b).
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Question: 2

The per capita income is highest for the year:

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For "highest" type questions, focus on absolute per capita values rather than percentages.
Updated On: Aug 7, 2025
  • 1984-85
  • 1985-86
  • 1987-88
  • 1989-90
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The Correct Option is D

Solution and Explanation

From earlier calculation, per capita income for 1989-90 is Rs. 5325.15, which is the highest among all years.
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Question: 3

The difference between the percentage increase in per capita income and the percentage increase in the population compared to the previous year is highest for the year:

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Subtracting the growth in population from growth in per capita income shows the real income improvement per person.
Updated On: Aug 7, 2025
  • 1985-86
  • 1986-87
  • 1987-88
  • 1988-89
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The Correct Option is D

Solution and Explanation

Step 1: Percentage increase in population

1985-86: \( \frac{75.0 - 74.0}{74.0} \times 100 \approx 1.35\% \)

1986-87: \( \frac{77.0 - 75.0}{75.0} \times 100 \approx 2.67\% \)

1987-88: \( \frac{78.5 - 77.0}{77.0} \times 100 \approx 1.95\% \)

1988-89: \( \frac{80.0 - 78.5}{78.5} \times 100 \approx 1.91\% \)

1989-90: \( \frac{81.5 - 80.0}{80.0} \times 100 \approx 1.88\% \)

Step 2: Difference between per capita income % increase and population % increase

1985-86: \( 12.41 - 1.35 \approx 11.06\% \)

1986-87: \( 8.73 - 2.67 \approx 6.06\% \)

1987-88: \( 10.98 - 1.95 \approx 9.03\% \)

1988-89: \( 15.57 - 1.91 \approx 13.66\% \)

1989-90: \( 9.65 - 1.88 \approx 7.77\% \)

Step 3: Highest difference

\( = 13.66\% \text{ in } 1988-89 \)

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Question: 4

The rate of increase in population was lowest in the year:

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For population-related questions, focus only on population data—ignore income columns.
Updated On: Aug 7, 2025
  • 1985-86
  • 1987-88
  • 1989-90
  • None of these
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The Correct Option is C

Solution and Explanation

From population growth calculation: lowest growth = 1.88\% in 1989-90.
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Question: 5

Increase in the per capita income compared to the previous year among the years given below was highest for the year:

Show Hint

When the question asks for “highest increase” always refer back to calculated growth rates, not the raw per capita values.
Updated On: Aug 7, 2025
  • 1985-86
  • 1986-87
  • 1987-88
  • 1989-90
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The Correct Option is D

Solution and Explanation

From earlier calculations, the highest percentage increase in per capita income = 15.57\% in 1988-89.
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