DHS 2025 WA2 H1 Mock Paper (Set A)

Name: Index Number: Class: 5C_____ DUNMAN HIGH SCHOOL Weighted Assessment 2 (Mock Paper A) Year 5 Economics (Higher 1) 8843/01 Paper 1 Case Study Questions 50 Minutes Changes in household expenditure Extract 1 UK families spending more during recession UK households spent an average of £471 per week in 2008 , an increase of 2 .6% from £459 in 2007 , despite the credit crunch, rising unemployment and the widespread pay freeze. Household spending is analysed according to an internationally-agreed classification system, shown in Figure 1 below. Figure 1 Spending by UK households, 2008 Source: www.statistics.gov.uk, accessed 13 September 2010 While spending on non -essentials and clothing fell between 2007 and 2008 , the cost of heating the family home and running a car increased , according to the figures produced by the Office for National Statistics' (ONS) Annual Family Spending Review. Transport remained the largest single area of expenditure, with people on average spending over £63 per week on travelling - and petrol accounted for as much as £21 of that (up by 15% since 2007). One retail analyst said 'There was a huge rise in fuel prices in the middle of 2008, and this seems to be reflected in the figures.' To try to balance the rise in the cost of essentials , families have made cutbacks in other areas such as clothing, alcohol and tobacco consumption and computer games - though, in the case of alcohol , this may merely reflect discounted prices in supermarkets. However , families do not seem to have been prepared to sacrifice spending on leisure activities; spending on recreation and culture - which includes such categories as package holidays , sport, gambling and admission to the cinema - was the seco nd

largest category of spending, and up by 4.7% on 2007. The divide between rich·and poor was illustrated by the fact that average weekly spending by the 10% of households in the highest income group was £1045, while those in the lowest 10% spent just £154 per week. Source: www.telegraph.co.uk, accessed 11 September 2010 Table 1 Admissions and spending at UK cinemas, 2002 to 2008 Year 2002 2003 2004 2005 2006 2007 2008 Admissions (millions) 175.9 167.2 171.2 164.6 156.6 162.5 164.2 Total spending (£ millions) 755.0 742.0 769.6 776.3 762.1 821.0 854.4 Sources: Film Distributors' Association Ltd; Cinema Exhibitors' Association Ltd Extract 2 UK cinema takings at record high Figures published today by the UK Film Council show that, despite the recession, 2009 was the best ever in terms of cinema box office takings, at over £944 million, and the second best since 1971 in terms of admissions at 174 million. This was not quite up to the 2002 figure, but still up by 6% on 2008. The chief executive of the Film Council said that, in terms of jobs, inward investment and contribution of cinema to the UK economy, 'there is absolutely no doubt that the fi