Consider a small town with 200 households, each employing 3 workers. The average productivity of an unskilled worker is 25 units per week. The government plans to train 120 workers at a cost of ₹500 per worker. After training, each trained worker’s productivity increases by 30%. Compute: (a) total cost of the training program; (b) total increase in weekly output of the town.
Answer
(a) ₹60,000 (b) 900 units
The correct answer is (a) ₹60,000 (b) 900 units — Total increase = 120 workers × 7.5 units = 900 units.
Step-by-step solution
- (a) Cost = 120 workers × ₹500 = ₹60,000.
- (b) Increase per trained worker = 25 × 30% = 7.5 units.
- Total increase = 120 workers × 7.5 units = 900 units.
Common mistake: Miscounting number of trained workers or adding the base output instead of the increase.
Concept tested: Cost‑benefit analysis of training program.
Published · How this solution was prepared and checked
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