Selected MCQ

Current Question
A person’s salary increases by 25%, and expenditure increases by 20%. What is the change in savings?
  • A. Increase
  • B. Decrease
  • C. No change
  • D. Cannot determine
Correct Answer: A
Explanation:
Income grows faster than expenditure.
Related Question 1
If income increases by 10% and expenditure increases by 20%, savings will ____.
  • A. Increase
  • B. Decrease
  • C. Same
  • D. Cannot determine
Correct Answer: B
Explanation:
Expenditure grows faster.
Related Question 2
If price increases by 50% and consumption decreases by 20%, what is the change in expenditure?
  • A. 20% increase
  • B. 25% increase
  • C. No change
  • D. 10% decrease
Correct Answer: A
Explanation:
1.5 × 0.8 = 1.2 → 20% increase.
Related Question 3
If income increases by 50% and expenditure increases by 40%, what happens to savings?
  • A. Increase
  • B. Decrease
  • C. No change
  • D. Cannot determine
Correct Answer: A
Explanation:
Income rises faster, increasing savings.
Related Question 4
If expenditure increases by 20% and income by 10%, what is the effect on savings?
  • A. Increase
  • B. Decrease
  • C. No change
  • D. Cannot determine
Correct Answer: B
Explanation:
Expenditure rises faster, reducing savings.
Related Question 5
A person reduces consumption by 10% when the price increases by 20%. What is the effect on expenditure?
  • A. 8% increase
  • B. 8% decrease
  • C. No change
  • D. 10% increase
Correct Answer: A
Explanation:
1.2 × 0.9 = 1.08 → 8% increase.