CAPE Economics Unit 2 · 2021 · 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 marksDefine disposable income.
2. 1(a)(ii)2 marksDefine net national income.
3. 1(b)(i)3 marksExplain the concept of 'double counting'.
4. 1(b)(ii)3 marksUsing an example, explain the concept 'marginal propensity to consume'.
5. 1(b)(iii)3 marksCalculate the equilibrium level of income.
6. 1(c)12 marksDiscuss THREE limitations of national income accounting.
7. 2(a)4 marksList FOUR instruments of monetary policy.
8. 2(b)(i)3 marksExplain the statement: 'Cigarettes are not generally considered as money.'
9. 2(b)(ii)3 marksExplain the statement: 'John has just graduated and is looking for a job. However, John's situation is not considered a case of cyclical unemployment.'
10. 2(b)(iii)3 marksIn Country M, the consumer price index (CPI) in 2017 was 110 and in 2018 it was 120. Determine the rate of inflation across the two years.
11. 2(c)12 marksWith the aid of a diagram representing the market for loanable funds, discuss 'crowding out'.
12. 3(a)4 marksIdentify FOUR forms of economic integration.
13. 3(b)(i)3 marksExplain the concept: Human Development Index.
14. 3(b)(ii)3 marksExplain the concept: Preferential trade agreement.
15. 3(b)(iii)3 marksExplain the concept: Exchange rate depreciation.
16. 3(c)12 marksDiscuss THREE factors responsible for globalization.