Day: October 6, 2020

In the construction of a consumer prices index (CPI), a total weight of 1000 is used.

If a weight of 300 is given to food and a weight of 150 is given to transport, then…

Select ONE answer:

1. consumers are spending half as much on transport as they do on food.
2. consumers must be spending more on necessities than on luxury goods.
3. food prices must be rising twice as fast as transport prices.
4. the weights cannot be changed until the index reaches 1000.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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