A-LevelEconomicsMacroeconomic Policy ObjectivesFeb/Mar 2021Paper 1 Q261 Mark

The table shows a country's consumer prices index (CPI) for March and April 2018. CPI March 2018 151.3 April 2018 148.6 Which statement correctly describes what happened between these two months?

Q: What topic does this question test?

This question tests Macroeconomic Policy Objectives in A-Level Economics (syllabus code 9708). It is worth 1 mark.

AThere was a decrease in the annual rate of inflation.

BThere was a decrease in real interest rates.

CThere was an increase in the purchasing power of money.

DThere was an increase in the standard of living.

✓ Correct Answer

The correct answer is C: There was an increase in the purchasing power of money.

📋 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.

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About This A-Level Economics Question

Topic

This multiple-choice question tests Macroeconomic Policy Objectives in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2021 examination, Paper 1 Variant 2.

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