CSEC Economics · May/June 2008 · Paper 2

38 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 'specialization'.
2. 1(b)3 marksList the THREE resource allocation decisions.
3. 1(c)4 marksDifferentiate between 'goods' and 'services' and give an example of EACH.
4. 1(d)6 marksDiscuss THREE benefits that may be derived from a free market economy.
5. 2(a)2 marksState TWO characteristics of a monopoly.
6. 2(b)3 marksList THREE disadvantages of a monopoly.
7. 2(c)4 marksExternalities can be positive or negative. Using an example, outline the difference between a positive and a negative externality.
8. 2(d)6 marksMarket failure may have several consequences on an economy. Discuss THREE of those consequences.
9. 3(a)2 marksDefine the term 'credit union'.
10. 3(b)3 marksList THREE functions of money.
11. 3(c)4 marksExplain TWO functions of the Central Bank in your country.
12. 3(d)6 marksExplain how the development of money over time has helped to improve the way in which monetary transactions are conducted.
13. 4(a)2 marksDefine the term 'standard of living'.
14. 4(b)3 marksList THREE factors that may impact on the economic growth of a country.
15. 4(c)4 marksCalculate the Gross Domestic Product (GDP) of Country X.
16. 4(d)6 marksDiscuss TWO ways in which a government can use fiscal policy to promote economic growth.
17. 5(a)(i)2 marksDefine the term 'unemployment'.
18. 5(a)(ii)2 marksDefine the term 'inflation'.
19. 5(b)3 marksList THREE types of unemployment.
20. 5(c)(i)2 marksIdentify TWO possible effects that the removal of preferential trading arrangements may have on an economy.
21. 5(c)(ii)6 marksDiscuss TWO measures that can be used to address the consequences of the removal of preferential trading arrangements.
22. 5(d)5 marksExplain TWO ways in which the CARICOM Single Market and Economy (CSME) can contribute to the economic development of a named Caribbean country.
23. 6(a)(i)2 marksDefine the term 'price elasticity of demand'.
24. 6(a)(ii)2 marksDefine the term 'income elasticity of demand'.
25. 6(b)3 marksIdentify TWO determinants of price elasticity of demand, and ONE determinant of income elasticity of demand.
26. 6(c)5 marksUsing an example, explain what a zero cross elasticity result represents.
27. 6(d)(i)4 marksDiscuss the likely impact of a significant rise in oil prices on research in bio-fuels.
28. 6(d)(ii)4 marksDiscuss the likely impact of a significant rise in oil prices on the type of vehicles purchased.
29. 7(a)4 marksDifferentiate between the 'terms of trade' and the 'balance of trade' of a country.
30. 7(b)3 marksList the component parts of the balance of payments.
31. 7(c)8 marksExplain TWO measures that can be used to correct a balance of payments deficit.
32. 7(d)5 marksDiscuss TWO ways in which a rise in oil prices will affect the balance of payments of a non-oil producing economy.
33. 8(a)(i)2 marksDefine the term 'economics'.
34. 8(a)(ii)2 marksDefine the term 'production possibility frontier'.
35. 8(b)3 marksIdentify THREE factors that will cause an outward shift in the production possibility frontier.
36. 8(c)(i)2 marksExplain ONE factor that will cause the production possibility curve to move inward.
37. 8(c)(ii)6 marksUsing a production possibility frontier, explain the concepts of 'opportunity cost' and 'efficiency'.
38. 8(d)5 marksSuggest TWO reasons why the concept of 'scarcity and choice' is important for individuals making economic decisions.