CSEC Economics · May/June 2011 · 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 'sole trader'.
2. 1(b)3 marksList THREE advantages of being a sole trader.
3. 1(c)6 marksUsing a diagram, explain the circular flow of income.
4. 1(d)4 marksDescribe TWO demerits of a centrally planned economy.
5. 2(a)(i)2 marksDefine income elasticity of demand.
6. 2(a)(ii)2 marksDefine cross elasticity of demand.
7. 2(b)1 markIdentify ONE factor that affects income elasticity of demand.
8. 2(c)6 marksExplain TWO factors that affect price elasticity of demand.
9. 2(d)(i)3 marksUsing the information in Table 1, calculate the price elasticity of demand for Product X when the price changes from US 5 to US 3.
10. 2(d)(ii)1 markInterpret the result obtained in (d)(i).
11. 3(a)2 marksDefine the term 'disposable income'.
12. 3(b)3 marksIdentify THREE major causes of inflation.
13. 3(c)6 marksExplain THREE ways in which a trade union in your country may seek to improve the working conditions of its members.
14. 3(d)4 marksDiscuss TWO measures that a government may adopt to stabilise the economy after a recession.
15. 4(a)2 marksDefine the term 'tariff'.
16. 4(b)3 marksList THREE factors that influence imports to a country.
17. 4(c)6 marksExplain TWO factors that can affect the value of a floating exchange rate.
18. 4(d)4 marksDistinguish between a 'managed exchange rate' and a 'fixed exchange rate'.
19. 5(a)2 marksDefine the term 'gross domestic product'.
20. 5(b)5 marksIdentify the FIVE items used in calculating gross domestic product when using the expenditure approach.
21. 5(c)8 marksExplain FOUR ways in which a recession can affect the gross domestic product in your country.
22. 5(d)5 marksUsing a numerical example, show how 'nominal output' and 'real output' differ.
23. 6(a)3 marksList THREE factors that can cause a change in demand.
24. 6(b)4 marksDistinguish between a 'change in quantity supplied' and a 'change in supply'.
25. 6(c)(i)2 marksState TWO benefits to be gained from a country's membership of the World Trade Organization (WTO).
26. 6(c)(ii)6 marksFor EACH of the benefits stated in (c)(i), explain how it can be helpful to the economy of your country.
27. 6(d)5 marksDiscuss TWO negative effects on Caribbean economies which can result from a loss of preferential trading arrangements.
28. 7(a)4 marksDifferentiate between a 'treasury bill' and a 'treasury bond'.
29. 7(b)3 marksList THREE characteristics of money.
30. 7(c)8 marksExplain TWO benefits of moving from a barter system to one which uses money as legal tender.
31. 7(d)5 marksDiscuss TWO ways in which the use of electronic payments impacts consumers and businesses.
32. 8(a)(i)2 marksDefine economic integration.
33. 8(a)(ii)2 marksDefine debt burden.
34. 8(b)3 marksList THREE benefits of large-scale production.
35. 8(c)(i)2 marksIdentify TWO characteristics of a mixed economic system.
36. 8(c)(ii)6 marksExplain TWO disadvantages of a mixed economic system.
37. 8(d)5 marksDiscuss TWO benefits that your country may gain from its membership of the CARICOM Single Market and Economy (CSME).