Which of the following items registered the highest rate of decline in…

2012

Which of the following items registered the highest rate of decline in expenditure from 2007–08 to 2009–10?

Answer: A. Labour and employmentConceptWhen values have different starting bases, compare their proportional change rather than only the absolute difference. Percentage decline = ((initial…

  1. A.

    Labour and employment

  2. B.

    Health & family welfare

  3. C.

    Social welfare & nutrition

  4. D.

    Education, sports & youth affairs

Show answer & explanation

Correct answer: A

Concept

When values have different starting bases, compare their proportional change rather than only the absolute difference.

Percentage decline = ((initial value − final value) ÷ initial value) × 100. The category with the largest positive percentage decline has the highest rate of decline.

Application

Category

2007–08

2009–10

Calculation

Decline rate

Labour and employment

0.27%

0.22%

0.27 − 0.22 = 0.05; (0.05 ÷ 0.27) × 100

18.52%

Health and family welfare

2.05%

1.90%

2.05 − 1.90 = 0.15; (0.15 ÷ 2.05) × 100

7.32%

Social welfare and nutrition

0.82%

0.79%

0.82 − 0.79 = 0.03; (0.03 ÷ 0.82) × 100

3.66%

Education, sports and youth affairs

4.02%

3.96%

4.02 − 3.96 = 0.06; (0.06 ÷ 4.02) × 100

1.49%

Cross-check

The computed order of decline rates is 18.52% > 7.32% > 3.66% > 1.49%, so the largest rate is uniquely identified.

Result

Labour and employment registered the highest rate of decline from 2007–08 to 2009–10.

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