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Qualification => Subject Doubts => GCE AS & A2 Level => Commerce => Topic started by: xxemoxx on January 29, 2010, 08:32:26 pm

Title: Economics CIE MCQs AS LEVEL
Post by: xxemoxx on January 29, 2010, 08:32:26 pm

Any help will be appreciated thankyou :)

The table show the information about a country whose consumers spend their incomes on three commodities, P,Q and R.
Commodity   Index of prices in year 1  INdex of prices in year 2   Consumers expenditure in year 1
P                100                                    160                            $100 million
Q               100                                      80                            $300 million
R                100                                     100                           $ 200 million

Between year 1 and year 2 how has the general level of prices changed?
A it has risen by 40%
B it has risen by 13%
C it has risen by 10%
D it has remained the same
E It has fallen by 5%

Please also explain to me the answer. thank

Title: Re: Economics CIE MCQs AS LEVEL
Post by: xxemoxx on January 29, 2010, 09:06:23 pm

I solved that question myself.
Anybody please solve the following question

 the average consumer divides his expenditure between food, clothing, accomodation and transport in the ratio 2 : 1 : 4 :3

During the course of a year, the price of food falls by 2%, the price of clothing increases by 4%, the price of accomodation increases by 10% and the price of transport remains constant.

Assuming that the weights of a price index reflect the expenditure of the averge consumer, what is the increase in the index over the year?

A 2.5%
B 4 %
C 10%
D 12%