Instructions

Study the following graph and answer the questions that follow

Question 58

If the world energy council formulates a norm for high emission countries to reduce their emission each year by 12.5% for the next two years then what would be the ratio of $$CO_2$$ emission to per capita income of US, China and Japan after two years. The per capita income of China, Japan and US is expected to increase every year by 4%, 3% and 2% respectively.

Solution

$$CO_2$$ emission by the US after 2 years = $${(1-\dfrac{12.5}{100})}^2\times 1200$$ = 918.75 million tons.Ā 

The per capita income in US after 2 years = $${(1+\dfrac{2}{100})}^2\times 300$$ = 312.12

Similarly, we can calculate theĀ $$CO_2$$ emission andĀ per capita income for remaining countries after two years from now.Ā Ā 

$$CO_2$$ emission by the China after 2 years = 903.44Ā million tons.Ā 

The per capita income in China after 2 years =Ā $${(1+\dfrac{4}{100})}^2\times 270$$ =Ā 292.032

$$CO_2$$ emission by the Japan after 2 years = 861.33Ā million tons.Ā 

The per capita income in Japan after 2 years =Ā $${(1+\dfrac{3}{100})}^2\times 240$$ = 254.616

Hence, the required ratio = $$\dfrac{918.75}{312.12}$$,Ā $$\dfrac{903.44}{292.032}$$,Ā $$\dfrac{861.33}{254.616}$$, = 2.9, 3.1, 3.4.Ā 

Therefore, we can say option C is the correct answer.Ā 


Create a FREE account and get:

  • All Quant Formulas and shortcuts PDF
  • 170+ previous papers with solutions PDF
  • Top 5000+ MBA exam Solved Questions for Free

cracku

Boost your Prep!

Download App