CSEC Economics · May/June 2017 · Paper 2

30 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 'opportunity cost'.
2. 1(b)3 marksList THREE groups that make choices in an economy.
3. 1(c)6 marksWith the aid of a diagram, explain how a production possibility frontier shows increasing opportunity cost.
4. 1(d)4 marksExplain these choices.
5. 2(a)4 marksDistinguish between the terms 'economies of scale' and 'diseconomies of scale'.
6. 2(b)1 markState ONE example of diseconomies of scale.
7. 2(c)6 marksDiscuss ONE advantage and ONE disadvantage of the division of labour.
8. 2(d)4 marksExplain why, over time, industries tend to become more capital intensive.
9. 3(a)(i)2 marksDefine the term 'Exchange rate devaluation'.
10. 3(a)(ii)2 marksDefine the term 'Floating exchange rate'.
11. 3(b)1 markList ONE protectionist measure used by countries to restrict trade.
12. 3(c)6 marksDiscuss TWO factors that can influence the level of the exchange rate in a country.
13. 3(d)(i)1 markState the name of the type of account in the balance of payments that shows the reduction in net exports.
14. 3(d)(ii)3 marksExplain how devaluation can correct the disequilibrium in Caribville's balance of payments.
15. 4(a)(i)2 marksDefine the term 'Economic growth'.
16. 4(a)(ii)2 marksDefine the term 'Economic development'.
17. 4(b)1 markState ONE measure of economic growth.
18. 4(c)6 marksDiscuss TWO factors that contribute to an economy's recession.
19. 4(d)4 marksSelect ONE 'developed economy' and ONE 'developing economy' and describe ONE economic difference between these two economies.
20. 5(a)2 marksDefine the term 'unemployment'.
21. 5(b)5 marksList FIVE types of unemployment.
22. 5(c)8 marksExplain how any FOUR types of unemployment listed in (b) occur.
23. 5(d)5 marksUsing the information given in Table 1, justify your choice of two persons who would be considered unemployed.
24. 6(a)(i)2 marksDefine the term 'Market equilibrium'.
25. 6(a)(ii)2 marksDefine the term 'Ceteris paribus'.
26. 6(b)3 marksList THREE factors that affect the price elasticity of demand.
27. 6(c)(i)2 marksUsing the information in Table 2, identify the equilibrium price and quantity.
28. 6(c)(ii)3 marksExplain the situation that would exist in the market if the price is $5.
29. 6(c)(iii)3 marksExplain the situation that would exist in the market if the price is $1.
30. 6(d)5 marksAfter ten years, the market for tamarind balls suddenly failed. Discuss TWO possible reasons for the failure.