DIRECTIONS for questions 1-5: Study the following graph carefully and answer the line graph problems given below:

1. The aggregate expenditure of which of the following sets of years was equivalent to the income in 1990?
A. 1987 & 1988

B. 1987 & 1989

C. 1988 & 1989

D. None of these

Answer & Explanation
Answer Option: D
Going by options: For 1987 & 1988, the total expenditure = 450 + 400 = 850 cr.
For 1987 & 1989 the total expenditure = 450 + 350 = 800 cr.
For 1988 & 1989 the total expenditure = 400 + 350 = 750 cr.
Income in 1990 = 400 cr. None of the options satisfies.

2. What was the approximate percentage decrease in income from 1987 to 1988?
A. 80%

B. 50%

C. 17%

D. 40%

Answer Option: C
Income in 1987 = 300 cr. Income in 1988 = 250 cr.% Decrease = 300 – 250 / 300 x 100 = 16.66%

3. In what number of the given years was the expenditure more than the average expenditure of the given years?
A. 4

B. 3

C. 1

D. 6

Answer & Explanation
Answer Option: B
The average comes out to be around Rs 410. There are 3 years having expenditure more than the average expenditure.

4. In which of the following years was the ratio of expenditure to the income, the lowest?
A. 1987

B. 1988

C. 1989

D. 1990

Answer & Explanation
Answer Option: D
For 1987, % of expenditure to Income = 450 / 300 = 1.5
For 1988, % of expenditure to Income = 400 / 250 = 1.6
For 1989, % of expenditure to Income = 350 / 200 = 1.75
For 1990, % of expenditure to Income = 450 / 400 = 1.125
Obviously it is lowest for 1990.

5. What was the approximate percentage increase in expenditure from 1989 to 1990?
A. 35%

B. 40%

C. 20%

D. None of these

Answer & Explanation
Answer Option: D
Expenditure in 1989 = 350 cr. Expenditure in 1990 = 450 cr. %increase =
450 – 350 / 350 x 100 =28.57%
None of the options satisfies.