A-LevelEconomicsInternational TradeOct/Nov 2009Paper 1 Q281 Mark
Country X trades with only two countries, the USA and Japan. 90% of the country's trade is with the USA and 10% is with Japan. The original value of the trade-weighted exchange rate index is 100. The value of country X's currency against the US$ rises by 10%. The value of country X's currency against the Japanese yen rises by 50%. What will be the value of country X's new trade-weighted exchange rate index?
A114
B115
C130
D160
✓ Correct Answer
The correct answer is A: 114
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
🔒
Unlock the Examiner's Analysis
Sign up for free to reveal the full examiner report, trap analysis, and mark scheme breakdown for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep