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JAMB Economics 2012 Question 31

Question 31

Money and Inflation

If a basket of commodities cost ₦120 in the base year and ₦240 in the current year, calculate the price index.

  1. A.100
  2. B.200
  3. C.240
  4. D.300
Show the answer and explanation

Answer: B (200)

Explanation

Price index = current cost/base cost × 100 = 240/120 × 100 = 200.