(a)[5]
- What do nominal prices and real prices mean? [2]
- Compare the changes in nominal food prices and real food prices before and after the year 2000. [3]
(b)[5]
- How could the differences in food weights shown in Table 1 be explained? [3]
- Contrast how the rate of inflation would be affected in Kenya and in the UK if food prices in each country rose by 20%. [2]
(c)[4]
Explain one possible reason why the IFPRI reported world food supply as responsive to changes in price.
(d)[6]
Discuss the benefits and disadvantages of rising world food prices.