CSEC Economics · May/June 2014 · Paper 2

42 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)1 markState the name of the curve commonly used to represent the production combinations shown in Table 1.
2. 1(b)(i)1 markState whether the opportunity cost is decreasing, increasing, or constant when moving from combination A through E in Table 1.
3. 1(b)(ii)1 markState the maximum amount of sugar that can be produced if 40 000 tons of bananas are produced.
4. 1(b)(iii)2 marksState TWO factors that would cause the curve identified in (a) to shift inward.
5. 1(c)(i)2 marksDetermine whether Country X is operating efficiently or not if it produces 2 000 tons of sugar and 15 000 tons of bananas.
6. 1(c)(ii)2 marksDetermine whether Country X is operating efficiently or not if it produces 1 000 tons of sugar and 15 000 tons of bananas.
7. 1(d)6 marksExplain TWO factors that should be considered before opening an internet cafe.
8. 2(a)(i)2 marksDefine the term 'economic system'.
9. 2(a)(ii)2 marksDefine the term 'capital goods'.
10. 2(b)1 markGive ONE example of a capital item.
11. 2(c)6 marksExplain TWO types of economies of scale gained when moving from operating a small food stall to a big restaurant.
12. 2(d)(i)2 marksCalculate the average total cost (ATC) for an output level of 3 units.
13. 2(d)(ii)2 marksCalculate the marginal cost for the 4th unit of output.
14. 3(a)(i)2 marksDefine the term 'exchange rate revaluation'.
15. 3(a)(ii)2 marksDefine the term 'managed exchange rate'.
16. 3(b)1 markState the name of the protectionist measure that limits the quantity of goods entering a country.
17. 3(c)6 marksDescribe TWO disadvantages that may accrue to a Caribbean country moving from a fixed exchange rate to a floating exchange rate system.
18. 3(d)4 marksAnalyse ONE benefit of using devaluation to correct a balance of payments problem.
19. 4(a)2 marksDefine the term 'economic goals'.
20. 4(b)3 marksList THREE economic goals of a government.
21. 4(c)6 marksExplain TWO disadvantages of using Gross Domestic Product (GDP) as a measure of standard of living.
22. 4(d)4 marksCalculate the Gross Domestic Product (GDP) for Country Y using the expenditure approach.
23. 5(a)(i)2 marksDefine the term 'the gold standard'.
24. 5(a)(ii)2 marksDefine the term 'equity securities'.
25. 5(b)3 marksList THREE types of financial institutions.
26. 5(c)8 marksExplain ONE way in which the informal sector contributes positively and ONE way it contributes negatively to the financial sector.
27. 5(d)5 marksAnalyse TWO benefits of electronic payments to an individual.
28. 6(a)3 marksList THREE examples of transfers found in the current account section of the balance of payments.
29. 6(b)(i)2 marksDefine the term 'investment income' as it relates to a country's balance of payments account.
30. 6(b)(ii)2 marksDefine the term 'balance of payments disequilibrium'.
31. 6(c)8 marksExplain TWO ways in which increases in the exchange rate of a country can affect the balance of payments account.
32. 6(d)5 marksCalculate the current account balance for Country Z using the information provided in Table 4.
33. 7(a)2 marksDefine the term 'market equilibrium'.
34. 7(b)2 marksIdentify the TWO main market forces in an economy.
35. 7(c)3 marksList THREE causes of market failure.
36. 7(d)8 marksExplain the statement regarding gasoline price hike in the context of cross elasticity of demand.
37. 7(e)5 marksDiscuss TWO impacts on the market that may result from the introduction of a low-cost airline carrier in the Caribbean.
38. 8(a)(i)2 marksDefine the term 'debt burden'.
39. 8(a)(ii)2 marksDefine the term 'economic integration'.
40. 8(b)3 marksList any THREE stages of economic integration.
41. 8(c)8 marksExplain TWO benefits to the Caribbean Community (CARICOM) of adopting a common external tariff.
42. 8(d)5 marksAnalyse any TWO effects of foreign direct investment on the economies of Caribbean countries.