CAT 2000 | Question: 157

Question

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 $1990-1998?$

• A. $1996$ 
• B. $1993$
• C. $1990$ 
• D. Cannot be determined

Comments

ig it is option $B\space 1993$

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1990: x × 1.04 = 1.04 x
1991: x × 1.04 × 1.01 = 1.050x
1992: x × 1.04 × 1.01 × 1.01 = 1.061x
1993: x × 1.04 × 1.01 × 1.01 × 0.96 = 1.019x
1994: x × 1.04 × 1.01 × 1.01 × 0.96 × 1.06 = 1.080x
1995: x × 1.04 × 1.01 × 1.01 × 0.96 × 1.06 × 1.09 = 1.177x
1996: x × 1.04 × 1.01 × 1.01 × 0.96 × 1.06 × 1.09 × 0.97 = 1.141x
1997: x × 1.04 × 1.01 × 1.01 × 0.96 × 1.06 × 1.09 × 0.97 × 1.06 = 1.210x
1998: x × 1.04 × 1.01 × 1.01 × 0.96 × 1.06 × 1.09 × 0.97 × 1.06 × 0.99 = 1.198x