O-LevelEconomicsMicroeconomic decision makers2281/11 · May/June 2021 · Q231 Mark

In a year, two changes occurred in a company. Company directors' salaries increased by 15%. Office workers' wages increased by 5%. The rate of inflation was 3.4%. What happened to real income?

Acompany directors' real income fell, office workers' real income fell

Bcompany directors' real income fell, office workers' real income rose

Ccompany directors' real income rose, office workers' real income fell

Dcompany directors' real income rose, office workers' real income rose

✓ Correct answer

D: company directors' real income rose, office workers' real income rose

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2021 Paper 1 Variant 1, question 23.

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