CAPE Economics Unit 2 · 2017 · Paper 2

16 questions and parts from this paper. Open one to see it in full, then practise it on Quelpr and get it marked against the mark scheme.

1. 1(a)(i)2 marksState TWO determinants of investment.
2. 1(a)(ii)4 marksDistinguish between 'gross domestic product' (GDP) and 'gross national product' (GNP).
3. 1(b)(i)3 marksDescribe the income approach used to measure GDP.
4. 1(b)(ii)3 marksDescribe the expenditure approach used to measure GDP.
5. 1(c)3 marksExplain ONE way in which growth in a country's GDP may negatively impact the country's standard of living.
6. 1(d)10 marksUsing a standard 45° Keynesian cross diagram, explain how equilibrium is reached between actual expenditure (AE) and income (Y).
7. 2(a)(i)4 marksDistinguish between 'monetary policy' and 'fiscal policy'.
8. 2(a)(ii)3 marksState THREE costs of unemployment.
9. 2(b)(i)3 marksExplain ONE way in which high or rising oil prices may impact the inflation rate.
10. 2(b)(ii)3 marksExplain ONE way in which high or rising oil prices may impact the unemployment rate.
11. 2(c)12 marksDiscuss THREE tools of monetary policy that Central Banks can use to help control inflation.
12. 3(a)(i)2 marksDefine the term 'balance of payments'.
13. 3(a)(ii)3 marksList THREE main accounts that are included in the balance of payments.
14. 3(b)(i)4 marksOutline TWO ways in which Caribbean countries benefit from increased exports.
15. 3(b)(ii)8 marksOutline TWO advantages and TWO disadvantages of economic partnership agreements for the Caribbean region.
16. 3(c)8 marksDiscuss TWO policy options that a country may adopt to correct a trade deficit and boost employment.