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Q7 (CAPF/2013) Economy › Basic Concepts & National Income › Percentages and profit-loss Answer Verified

The following tables show the expenditure (in percentage) of two families A and B :

ItemFamily A (Income: 20,000)Family B (Income: 1,00,000)
Food50%10%
Entertainment30%20%
Miscellaneous20%70%

Which one among the following statements is true?

Result
Your answer: —  Â·  Correct: C
Explanation

To find the correct statement, we must calculate the absolute expenditure amounts for both families by applying their given percentages to their respective monthly incomes.

Family A (Income: 20,000):

  • Food: 50% of 20,000 = 10,000
  • Entertainment: 30% of 20,000 = 6,000
  • Miscellaneous: 20% of 20,000 = 4,000

Family B (Income: 1,00,000):

  • Food: 10% of 1,00,000 = 10,000
  • Entertainment: 20% of 1,00,000 = 20,000
  • Miscellaneous: 70% of 1,00,000 = 70,000

Comparing these absolute values, both Family A and Family B spend exactly 10,000 on food. Thus, the statement that Families A and B spend equally on food is definitively true.

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