CSEC Economics · May/June 2007 · Paper 2

33 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)2 marksDefine the term 'national income'.
2. 1(b)3 marksList THREE factors that affect the national income of a country.
3. 1(c)4 marksExplain TWO factors that may affect the quality of national income statistics.
4. 1(d)6 marksDiscuss THREE drawbacks of using the national income as a measure of the standard of living.
5. 2(a)2 marksDefine the concept 'terms of trade'.
6. 2(b)3 marksList THREE reasons why countries trade.
7. 2(c)4 marksExplain TWO ways in which a significant foreign direct investment is likely to impact your country.
8. 2(d)6 marksWith reference to a named country, discuss TWO reasons why a trade surplus may have negative effects on an economy.
9. 3(a)2 marksDefine a 'production possibility curve'.
10. 3(b)3 marksIdentify THREE advantages of the division of labour.
11. 3(c)4 marksWith reference to the sugar industry, distinguish between 'primary' and 'secondary' factors of production.
12. 3(d)6 marksIf the quantity of capital available for production in your country increases but labour remains fixed, would the law of diminishing returns still operate? Explain your answer.
13. 4(a)2 marksDefine the term 'market'.
14. 4(b)3 marksList THREE reasons why markets fail.
15. 4(c)4 marksDescribe TWO benefits that will result in moving from a monopoly to a perfectly competitive market in the telecommunications industry.
16. 4(d)(i)2 marksDescribe the market situation at a price of $8.
17. 4(d)(ii)4 marksThe government imposes a fixed price of $6 on Product X. With the aid of a diagram, discuss the effects of this action.
18. 5(a)3 marksList THREE financial intermediaries.
19. 5(b)4 marksState TWO functions of money.
20. 5(c)(i)5 marksDiscuss ONE way in which the Central Bank in your country can achieve this objective.
21. 5(c)(ii)8 marksDiscuss TWO other monetary policy measures that the Central Bank may apply to curb inflation in your country.
22. 6(a)3 marksExplain what is meant by 'recession'.
23. 6(b)4 marksDescribe TWO causes of unemployment.
24. 6(c)5 marksUsing a supply and demand diagram, illustrate and explain briefly cost-push inflation caused by a labour union successfully negotiating for a higher wage.
25. 6(d)8 marksFor a named Caribbean country, discuss TWO negative effects of a Government budget deficit on the economy.
26. 7(a)2 marksList the TWO means by which resources are allocated in an economy.
27. 7(b)5 marksDistinguish between a change in 'demand' and a change in 'quantity demanded'.
28. 7(c)5 marksExplain TWO determinants of the price elasticity of demand for BMW vehicles.
29. 7(d)8 marksUsing the determinants identified in (c) above, discuss how these may be responsible for the demand curve shifting from D to D1 in Figure 1.
30. 8(a)3 marksList THREE objectives of the Caribbean Community (CARICOM).
31. 8(b)(i)4 marksExplain the concepts of 'trade liberalisation' and 'e-commerce'.
32. 8(b)(ii)5 marksOutline THREE benefits of e-commerce to Caribbean businesses.
33. 8(c)8 marksDiscuss TWO measures that can be employed by Caribbean governments in order to promote sustainable growth in e-commerce in the region.