CSEC Economics · May/June 2016 · 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.

1. 1(a)2 marksDefine the term 'diseconomies of scale'.
2. 1(b)1 markIdentify the time period in which 'economies of scale' occur.
3. 1(c)2 marksIdentify TWO types of diseconomies of scale.
4. 1(d)6 marksExplain how the THREE resource allocation decisions are made in a free market economy.
5. 1(e)4 marksIdentify TWO 'fixed costs' and TWO 'variable costs' associated with setting up a hairdressing salon or a barber shop.
6. 2(a)2 marksDefine the term 'market failure'.
7. 2(b)3 marksList THREE causes of market failure.
8. 2(c)(i)3 marksExplain the impact on the demand curve when the price of a good falls.
9. 2(c)(ii)3 marksExplain the impact on the demand curve when the income of the population rises.
10. 2(d)(i)3 marksCalculate the cross-price elasticity of demand using the provided information.
11. 2(d)(ii)1 markDetermine the classification of Good A in relation to Good B based on the result obtained in (d)(i).
12. 3(a)2 marksDefine the term 'globalization'.
13. 3(b)3 marksList THREE challenges of e-commerce to the consumer.
14. 3(c)6 marksUsing the characteristics of the stages of economic integration, justify the statement that CARICOM is currently a common market.
15. 3(d)4 marksExplain TWO benefits to Caribbean states of being a member of CARICOM.
16. 4(a)2 marksDefine the term 'balance of payments'.
17. 4(b)3 marksList THREE types of exchange rate regimes.
18. 4(c)(i)4 marksDistinguish between 'investment income' and 'foreign direct investment'.
19. 4(c)(ii)2 marksIndicate where 'investment income' and 'foreign direct investment' appear in the balance of payments accounts.
20. 4(d)4 marksExplain TWO ways in which currency devaluation can improve a country's balance of payments deficit.
21. 5(a)(i)2 marksDefine the term 'Economics'.
22. 5(a)(ii)2 marksDefine the term 'Money cost'.
23. 5(b)3 marksList the THREE main sectors in an economy.
24. 5(c)4 marksExplain the difference between 'increasing opportunity costs' and 'constant opportunity costs'.
25. 5(d)(i)2 marksDescribe the impact on the production possibility curve of a country if there is heavy unemployment.
26. 5(d)(ii)2 marksDescribe the impact on the production possibility curve of a country if large-scale migration occurs in developed countries.
27. 5(e)5 marksDraw a diagram of the production possibility curve and label it to show increasing opportunity costs.
28. 6(a)2 marksDefine the term 'price elasticity of supply'.
29. 6(b)3 marksList THREE characteristics of a perfectly competitive market.
30. 6(c)2 marksIdentify TWO types of market structures OTHER THAN perfect competition.
31. 6(d)4 marksExplain the difference between an 'increase in supply' and an 'increase in quantity supplied'.
32. 6(e)4 marksExplain TWO factors that may affect the supply of a good.
33. 6(f)5 marksDescribe how the market for cigarettes can contribute to market failure.
34. 7(a)2 marksDefine the term 'recession'.
35. 7(b)2 marksIdentify TWO withdrawals from the circular flow of income.
36. 7(c)3 marksList THREE types of unemployment.
37. 7(d)8 marksExplain TWO ways in which fiscal policy can be used to reduce unemployment in the tourism sector.
38. 7(e)(i)3 marksCalculate the real output.
39. 7(e)(ii)2 marksState what the retail price index implies about inflation.
40. 8(a)2 marksDefine the term 'barter'.
41. 8(b)3 marksList THREE disadvantages of bartering.
42. 8(c)2 marksState TWO functions of the financial sector in an economy.
43. 8(d)(i)4 marksExplain how the central bank would use discount rates to increase the money supply.
44. 8(d)(ii)4 marksExplain how the central bank would use reserve requirement ratios to increase the money supply.
45. 8(e)5 marksUsing examples, explain how the use of credit cards has improved the function of money as a medium of exchange.