A-LevelEconomicsInflationMay/June 2010Paper 1 Q231 Mark
The average consumer divides his expenditure between food, accommodation and clothing in the ratio 5:3:2. During the course of a year, the price of food rises by 10%, the price of accommodation remains constant and the price of clothing falls by 5%. What is the increase in the Consumer Price Index over the year?
A2.5%
B4%
C5%
D6%
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of inflation within the Economicssyllabus. The examiner's mark scheme requires...
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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...
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