CSEC Economics · May/June 2010 · 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 'ceteris paribus'.
2. 1(b)3 marksList THREE determinants of the supply of a commodity, OTHER than its price.
3. 1(c)6 marksExplain THREE benefits that consumers may derive from the introduction of new service providers in the telecommunications industry.
4. 1(d)3 marksUsing a demand and supply diagram, ILLUSTRATE the impact on equilibrium quantity of a telephone company moving from a monopoly situation to one with other competitors in the market.
5. 1(e)1 markWith reference to the diagram drawn at (d) above, what impact would the movement from a monopoly situation to a competitive market have on the equilibrium price?
6. 2(a)2 marksDefine the term 'productivity'.
7. 2(b)3 marksIdentify THREE rewards that can be gained by the factors of production.
8. 2(c)6 marksDiscuss TWO reasons why a centrally-planned economy tends to be LESS efficient than a market-based economy.
9. 2(d)4 marksExplain TWO advantages that may be derived from the division of labour in the tourism industry.
10. 3(a)2 marksDefine the term 'comparative advantage'.
11. 3(b)3 marksList THREE reasons why countries trade.
12. 3(c)6 marksDiscuss TWO problems that can arise with the balance of payments of non-oil-producing Caribbean countries as a result of rising oil prices.
13. 3(d)4 marksExplain TWO ways in which devaluation can impact the small, open economies of the Caribbean.
14. 4(a)(i)2 marksDefine the term 'Gross capital fixed formation'.
15. 4(a)(ii)2 marksDefine the term 'Net property income from abroad'.
16. 4(b)1 markState the information that is needed to calculate national income at market prices, apart from the information provided in Table 1 above.
17. 4(c)6 marksDiscuss TWO factors that can cause the Gross National Product (GNP) of a country to be greater than the Gross Domestic Product (GDP).
18. 4(d)4 marksCalculate the Gross National Product for Country X using the information in Table 1 above.
19. 5(a)2 marksDefine the term 'market structure'.
20. 5(b)2 marksList TWO consequences of a market failure.
21. 5(c)3 marksState THREE characteristic features of a monopoly.
22. 5(d)(i)4 marksDiscuss TWO factors that would affect the elasticity of demand for wheat.
23. 5(d)(ii)4 marksWith the aid of a diagram, identify TWO possible effects of a shift to the left of an original supply curve, with the demand curve remaining the same.
24. 5(e)5 marksExplain TWO consequences of having a cartel in the energy sector.
25. 6(a)2 marksDefine the term 'economics'.
26. 6(b)5 marksDistinguish between the terms 'scarcity' and 'choice'.
27. 6(c)(i)4 marksExplain what is taking place at Point A in the diagram.
28. 6(c)(ii)4 marksOutline TWO measures that a producer can take to attain the production level indicated at Point C in the diagram.
29. 6(d)5 marksDiscuss TWO economic factors that may encourage a producer of bread to remain in bread production.
30. 7(a)4 marksDifferentiate between a 'treasury bill' and a 'bond'.
31. 7(b)3 marksList THREE functions of money.
32. 7(c)8 marksExplain how inflation can affect ALL the functions of money.
33. 7(d)5 marks"The central bank is the lender of last resort". Discuss this statement in relation to the central bank's role in managing the monetary sector in the economy.
34. 8(a)3 marksList THREE benefits that Caribbean economies can gain from e-commerce.
35. 8(b)4 marksOutline TWO challenges that Caribbean economies might face in developing e-commerce.
36. 8(c)8 marksDiscuss TWO measures that can be employed by Caribbean governments in order to enhance e-commerce in the region.
37. 8(d)5 marksFor a named Caribbean country, briefly discuss TWO reasons why that country may need to implement a structural adjustment programme (SAP).