CSEC Economics Paper 1 May/June 2013 - Free CXC Past Paper with Answers

White Ltd / Flour processing

Red Ltd / Tomato cultivation

Yellow Ltd / Private taxi services

Green Ltd / Herbal medicine production

the burger he gave up

the satisfaction he gets from burgers

the price of the chicken and chips

the satisfaction he gets from the chicken and chips

primary sector

secondary sector

tertiary sector

quaternary sector

The leisure time lost

The income from the job

The income tax he now pays

The cost of travelling to work

point X was unattainable in Year 2

point X was efficient in Year 1 and cost Year 2

there was decreasing opportunity cost in Year 2

there was economic growth from between Year 1 and Year 2

increase in wages

increase in prices

increase in imports

improvement in technology

6

7

8

9

Firm's profitability

Worker motivation

Level of technology

Education and training

people's needs exceed their wants

resources are unlimited and people's wants are limited

resources are scarce while people's wants are unlimited

people may not always have the money to conduct business

progress

productivity

specialization

entrepreneurial ability

shareholders of the bank

bank tellers and supervisors

investment managers of the bank

maintenance workers employed by the bank

a bottle of soda water

loan approved by a bank

extra lesson at a school

beauty makeover at a spa

profits are lower

producers are never efficient

buyers and sellers determine prices

there are higher unemployment levels

mixed

planned

subsistence

free market

Mixed

Planned

Traditional

Free market

The building

The bank's vault

Shareholders of the bank

Special savings accounts for students

0

0.4

1

2.5

$2 and $4

$4 and $6

$6 and $8

$8 and $10

total stock of money in an economy at any moment

amount of money traded in the foreign exchange market

total asset base of the institutions in the financial sector

total amount of gold, silver and other precious metals in reserve

Freedom of entry and exit

Selling of homogeneous products

Many buyers and one seller

Knowledge of market conditions

Reduction in crime rate

Equality in income distribution

Increased standard of living

A fall in the standard of living

diminishable

zero-priced

excludable

rivalrous

$4

$8

$12

$16

movement of technology and financial markets worldwide

integration of financial services, technology and commodity markets worldwide

international trade of goods and services including skilled workers

movement of tangible and intangible goods among countries

They provide insurance protection to speculators.

They place emphasis on consumer education.

They are free from government interference.

They channel funds from those who have saved to those who wish to borrow.

Treasury bills

Corporate bonds

Equity securities

Shares on the stock exchange

be limited in supply

have limited demand

be backed by law

be acceptable by banks as deposit

Gold

Lumber

Cheque

A ten-dollar bill (note)

retained earnings

securities

deposits

loans

Store of value

Unit of account

Medium of exchange

Standard of deferred payment

Treasury

Central Bank

Board of Currency Control

Institute of Monetary Affairs

Printing currencies

Accepting deposits

Fixing import quotas

Fixing currency exchange rates

Development bank

Commercial bank

Credit union

Trade union

foreign surplus

interest rate

national debt

national budget

investment

factor incomes

savings

factors of production

I only

II only

I and II only

II and III only

productivity

entrepreneurship

factors of production

factors of productivity

Education

Health care

Hairdressing

Motorcycle

2006

2007

2008

2009

High debt burden

High levels of unemployment

Low level of capital formation

Major producers of manufactured goods

establish a minimum wage rate

increase the wage rate of employees

negotiate wages on behalf of workers

create conflict between employers and employees

are less expensive to administer

have the strong support of economists

are easier to get passed in Parliament

remove uncertainty about the quantity of imports

Source of remittances.

Sustained growth

Guaranteed development

Discovery of more talent

Economies of scale.

Improved international relations

Increased consumer choice and variety

Stiff competition for local industry...

European Union (EU)

World Trade Organization (WTO)

International Monetary Fund (IMF)

Caribbean Community (CARICOM)

TT$3 050

TT$3 150

TT$5 000

TT$5 630

The amount of subsidies received by local exporters

The level of tax that is levied on imports entering a country

The amount of goods that can be imported into a country

The common tax levied by countries on member countries within a region

Value of imports is greater than the value of exports.

Value of exports is greater than the value of imports.

Volume of exports is greater than the volume of imports.

Volume of imports is greater than the volume of exports.

Overseeing payments and exchange rates between countries

Promoting the financial stability of countries

Assisting countries with balance of payment difficulties

Settling trade disputes between countries

Their liquid assets will be reduced

Their ability to create credit will increase.

Their loans to money markets will increase.

They will attract less deposits from the public.

structural adjustment

globalization

bilateral agreement

protectionism

Reduce the volume of exports to other countries.

Engage in trade with other low-cost producers of goods.

Increase the importation of goods from other countries.

Impose restrictions on goods imported from other countries.

Globalization

Specialization

Trade unionism

Currency fluctuation

I and II only

II and III only

I, III and IV only

II, III and IV only

ecotourism

export business

electronic business

economies of scale

a shop owner

a store worker

a bank manager

an airline employee

Prices of goods and services will increase.

Prices of goods and services will decline.

Cost of providing goods and services will be lower.

There will be greater access to a variety of goods and services.