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A-LevelEconomicsMacroeconomic IndicatorsMay/June 2011Paper 1 Q231 Mark

The diagram compares the inflation rates of Paraguay and Argentina between 1950 and 2005. What can be concluded about inflation rates in the two countries in the period 1950 to 2005?

AArgentina's prices fell rapidly between 1992 and 1995.
BArgentina stabilised its price level between 1973 and 1992.
CParaguay was always more successful than Argentina at controlling its inflation rate.
DParaguay was most successful at controlling its inflation rate between 1962 and 1970.

✓ Correct Answer

The correct answer is D: Paraguay was most successful at controlling its inflation rate between 1962 and 1970.

📋 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 Indicators in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2011 examination, Paper 1 Variant 2.

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