CSEC Economics · May/June 2009 · Paper 2

37 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 'opportunity cost'.
2. 1(b)3 marksList THREE factors that firms must consider when determining what goods or services to produce.
3. 1(c)4 marksOutline TWO factors that might affect the distribution of goods in your territory.
4. 1(d)6 marksWith the aid of a diagram, discuss TWO effects of setting a price ceiling below the equilibrium price for rice.
5. 2(a)3 marksList THREE factors of production.
6. 2(b)2 marksGive TWO examples of ONE factor of production listed in part (a).
7. 2(c)4 marksExplain how the 'market' and the 'government' differ in resource allocation in your country.
8. 2(d)6 marksOutline THREE merits of the market system in allocating resources in Caribbean economies.
9. 3(a)2 marksList TWO functions of money.
10. 3(b)3 marksIdentify THREE roles of the financial sector in an economy.
11. 3(c)4 marksExplain how the Central Bank in a named Caribbean country can restrict the money supply, including TWO specific methods.
12. 3(d)6 marksOutline THREE functions of a Central Bank other than restricting the money supply.
13. 4(a)2 marksDefine the role of the World Trade Organization (WTO).
14. 4(b)3 marksList THREE factors that influence the export of goods and services.
15. 4(c)4 marksOutline TWO factors that might cause a country to devalue its currency.
16. 4(d)6 marksDiscuss TWO consequences of a balance of payments deficit in your territory.
17. 5(a)3 marksList the THREE methods of measuring national income.
18. 5(b)4 marksOutline TWO factors that influence savings.
19. 5(c)5 marksUsing a supply and demand diagram, explain why unemployment resulted from a labour union successfully negotiating higher wages.
20. 5(d)(i)4 marksDistinguish between 'economic growth' and 'economic development'.
21. 5(d)(ii)4 marksOutline TWO factors that influence economic growth in a named Caribbean territory.
22. 6(a)3 marksList THREE characteristics of Caribbean economies.
23. 6(b)(i)a)2 marksDefine the term 'Trade liberalization'.
24. 6(b)(i)b)2 marksDefine the term 'Globalization'.
25. 6(b)(ii)5 marksOutline THREE benefits of trade liberalization to Caribbean economies.
26. 6(b)(iii)2 marksIdentify TWO challenges associated with trade liberalization and globalization for Caribbean economies.
27. 6(b)(iv)6 marksFor EACH of the two challenges identified in (b)(iii), outline ONE measure that Caribbean governments can adopt to overcome it.
28. 7(a)2 marksDefine the term 'market failure'.
29. 7(b)5 marksOutline THREE causes of market failure.
30. 7(c)5 marksDescribe TWO consequences of market failure in the transportation sector in a named Caribbean territory.
31. 7(d)(i)4 marksOutline TWO factors that might affect the price elasticity of supply of sugar.
32. 7(d)(ii)4 marksWith the aid of a diagram, state TWO effects of a rightward shift in demand when supply remains unchanged.
33. 8(a)2 marksDefine the term 'economies of scale'.
34. 8(b)5 marksWith the aid of a diagram, explain the relationship between marginal cost and average cost curves.
35. 8(c)(i)4 marksOutline TWO factors that might cause inflation in the Caribbean.
36. 8(c)(ii)1 markIdentify ONE consequence of inflation in the Caribbean.
37. 8(d)8 marksDiscuss TWO measures that can be adopted to reduce inflation in your country.