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CSEC Economics · May/June 2012 · Paper 2

45 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.

Practise this paper
  1. 1(a)2 marksDefine the term 'Economics'.
  2. 1(b)3 marksList the THREE main components of an economy.
  3. 1(c)6 marksExplain TWO factors that a consumer has to take into account before buying a good.
  4. 1(d)4 marksUsing a diagram of a production possibility curve, explain how opportunity cost can be illustrated.
  5. 2(a)2 marksDefine the term 'cartel'.
  6. 2(b)3 marksList THREE characteristics of an oligopolistic market structure.
  7. 2(c)6 marksA computer store has reduced its price of computers. Using TWO separate diagrams, one for computers and the other for printers (related products), explain the effect of the reduction in price on the equilibrium price…
  8. 2(d)4 marksExplain TWO problems that can arise from a firm being the only producer in the market.
  9. 3(a)(i)2 marksDefine the term 'Terms of trade'.
  10. 3(a)(ii)2 marksDefine the term 'Balance of trade'.
  11. 3(b)1 markState ONE factor that can affect the terms of trade of a country.
  12. 3(c)(i)2 marksCalculate the balance of trade for the years 1990, 1991, 1992 and 1993.
  13. 3(c)(ii)4 marksAnalyse the trend in the balance of trade from 1990 to 1993.
  14. 3(d)4 marksExplain TWO economic effects of an adverse balance of trade on a country.
  15. 4(a)(i)2 marksDefine the term 'Investment'.
  16. 4(a)(ii)2 marksDefine the term 'Savings'.
  17. 4(b)1 markIdentify ONE factor that affects investment.
  18. 4(c)6 marksAn economy records a rise in unemployment and a fall in business investment. Explain how TWO fiscal policies can be used to address these conditions.
  19. 4(d)4 marksExplain TWO factors that could have caused the state of the economy mentioned in (c) above.
  20. 5(a)4 marksDifferentiate between 'fixed' and 'variable' costs. Give ONE example of EACH type of cost.
  21. 5(b)3 marksList THREE types of business organization.
  22. 5(c)(i)4 marksDistinguish between 'economies of scale' and 'diseconomies of scale'.
  23. 5(c)(ii)4 marksDraw a well-labelled diagram showing the regions of economies of scale and diseconomies of scale.
  24. 5(d)5 marksExplain how a baker would respond to the THREE resource allocation decisions that arise in a free market economy.
  25. 6(a)(i)2 marksDefine the term 'Common external tariff' as it relates to international trade.
  26. 6(a)(ii)2 marksDefine the term 'Import quota' as it relates to international trade.
  27. 6(b)3 marksIdentify THREE reasons why governments adopt protectionist measures.
  28. 6(c)8 marksExplain, with examples, TWO items that would be found in EACH of the following sections of the Balance of Payments Account: (i) Current Account (ii) Capital Account
  29. 6(d)(i)1 markBy what name will the transaction 'A St Lucian travels to France on holiday' be known in the Balance of Payments Account of St Lucia?
  30. 6(d)(ii)1 markBy what name will the transaction 'British visitors attend the 20/20 cricket match at the Beausejour Cricket Ground in St Lucia' be known in the Balance of Payments Account of St Lucia?
  31. 6(d)(iii)1 markBy what name will the transaction 'A St Lucian buys shares in Microsoft in the United States of America' be known in the Balance of Payments Account of St Lucia?
  32. 6(d)(iv)1 markBy what name will the transaction 'Vanguard Atlantic earns US…
  33. 6(d)(v)1 markBy what name will the transaction 'An American citizen sets up a company in the capital of St Lucia' be known in the Balance of Payments Account of St Lucia?
  34. 7(a)(i)1 markWrite the acronym 'CSME' in full.
  35. 7(a)(ii)1 markWrite the acronym 'OECS' in full.
  36. 7(a)(iii)1 markWrite the acronym 'IMF' in full.
  37. 7(a)(iv)1 markWrite the acronym 'FDI' in full.
  38. 7(b)3 marksIdentify THREE characteristics of Caribbean economies.
  39. 7(c)8 marksDiscuss TWO potential benefits of trade liberalisation to an economy.
  40. 7(d)5 marksExplain TWO ways in which e-commerce may encourage economic activity in an economy.
  41. 8(a)(i)2 marksDefine the term 'Stock exchange'.
  42. 8(a)(ii)2 marksDefine the term 'Credit union'.
  43. 8(b)3 marksList THREE functions of a Central Bank.
  44. 8(c)8 marksUsing a diagram, explain the circular flow of income.
  45. 8(d)5 marksExplain TWO ways in which an insurance company can contribute to the economic development of a country.

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