Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

The table gives the weights assigned to different categories of goods in a Consumer Prices Index (CPI) for two years. What conclusion can be drawn from the table when year 1 is compared with year 2?

  • AReal income spent by the average consumer on motoring increased.
  • BThe cost of producing food has fallen.
  • CThe CPI has not changed over the two years.
  • DThe proportion of income spent on clothing has increased.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI