IB Economics HL 3.3.5 Weighted price index Question Bank
Practise IB Economics HL 3.3.5 by applying weighted price index concepts to exam-style questions.
- Syllabus
- First assessment 2022
- Course
- Economics HL
- Level
- HL
Practise IB Economics HL 3.3.5 by applying weighted price index concepts to exam-style questions.
The following information provides a simplified version of the calculation of a consumer price index (CPI).
In Country A, the rate of inflation is measured by the calculation of a CPI. The index is calculated using the five products which are purchased by citizens of Country A as representative of a "typical basket of goods".
The weighting given to each product is based on the quantities of each product purchased by the average household in Country A per week.

Table 1
Assume that 2015 is the base year for the purpose of calculating the CPI.
Calculate the consumer price index (CPI) for Country A in 2016.
In 2015, the typical basket costs
In 2016, the typical basket costs
Any valid working is sufficient for [1].
The CPI in 2016=322.70336.70×100
=104.34
An answer of 104.34 without workings is sufficient for [1].
Marking guidance:
OFR applies, assuming that the correct method of calculating the cost of the baskets is applied.