Hard Multiple choice question (1 Viewer)

[akhilN3]

Hey guys, I was doing the 2010 economics hsc paper and I stumbled on question 7 multiple choice and did not know what to do. I have been working to find out how to this this but i'm unsure. If I could get some help for 2010 Q7 multiple choice q, it would be great. Here is a link for the paper. http://www.boardofstudies.nsw.edu.au/hsc_exams/hsc2010exams/pdf_doc/2010-hsc-exam-economics.pdfThanks

 

[Kieran95]

I'm not very good at economics so i'm probably wrong but, my method of doing this question would be:

Food = 110 - 100 x 0.3 (CPI weighting as a decimal)
Health = 130 -100 x 0.1
Housing = 125 - 100 x 0.15
Clothing = 120 - 100 x 0.2

and when you do the calculations, clothing comes out to be the highest (at 4). So, the answer is D?

 

[akhilN3]

dont u have to divide by 100 as well for inflation? But even if u do that, u still get D as answer. thanks for your time.