CSEC Economics Paper 1 May/June 2021 - Free CXC Past Paper with Answers

A

B

C

D

increase in wages

increase in imports

improvement in technology

improvement in the standard of living

social science

natural science

physical science

business science

Increasing retirement benefits

Passing minimum wage legislation

Regulating the emission of toxic waste

Identifying areas where businesses should be located

$ 100

$ 400

$1000

$4000

financial

technical

marketing

managerial

6

7

8

9

Banking and tourism

Tourism and agriculture

Banking and construction

Manufacturing and fishing

consumers have a wider variety of goods

workers are more motivated and diligent

firms have a greater incentive to be efficient

there is usually a more equitable distribution of wealth

interaction between buyers and sellers

transformation of inputs into outputs

pricing of resources according to demand

economic relationship between output and input

Gold

Banana

Furniture

Crude oil

free market economy

planned economy

controlled economy

subsistence economy

pass on increased costs to customers

are willing to produce more as price increases

increase their profit margins as price increases

are willing to increase supply as demand increases

price of Good X

income of consumers

price of a complement

cost of inputs used to produce Good X

price will increase

supply will increase

supply will decrease

demand will decrease

0

0.4

1

2.5

$2 and $4

$4 and $6

$6 and $8

$8 and $10

agricultural goods have lower demand

agricultural goods take longer to produce

manufactured goods are cheap to produce

manufactured goods are subject to quality control regulations

rise in the quantity supplied of flour

fall in the quantity demanded of flour

rise in the quantity demanded for bread

fall in the quantity demanded for bread

price

taste

income

demand

income falls

costs of production fall

costs of production rise

technology is introduced

Monopoly

Oligopoly

Perfect competition

Monopolistic competition

Freedom of entry and exit

Many buyers and one seller

Buying and selling of homogenous products

Perfect knowledge of market conditions

Reduction in crime rates

Increased standard of living

A fall in the standard of living

Equality in income distribution

Oligopoly

Monopoly

Perfect competition

Monopolistic competition

excludable

zero-priced

diminishable

complimentary

merit good

private good

postive externality

negative externality

total stock of money in an economy at any moment

total asset base of the institutions in the financial sector

amount of money traded in the foreign exchange market

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

Emma babysits her neighbour's children to earn pocket money.

Sandra formally organizes a meeting turn with eight of her neighbours.

The village vagrant collects bottles from the neighbourhood and takes them to a recycling plant.

The recycling plant deposits the money earned on a daily basis on its account at a local bank.

Treasury bills

Corporate bonds

Equity securities

Shares on the stock exchange

Printing currencies

Accepting deposits

Fixing import quotas

Fixing currency exchange rates

functions of the central bank

flow of deposits into the financial sector

flow of funds into the household sector

role that the financial sector performs for customers

encourage ‘summer’ spending

provide credit to government agencies

encourage thrift among its members

provide investment funds for companies

interest rate

national debt

foreign surplus

national budget

Advanced

Advancing

Developed

Developing

I and II only

I and III only

II and III only

I, II and III

cyclical

seasonal

frictional

structural

Price of oil

Price of luxuries

Wages and salaries

Total demand in the economy

a decline in the gross domestic product

a decline in the sale of manufactured products

an increase in employment in the manufacturing sector relative to gross domestic output

a decline in manufacturing output relative to gross domestic product

savings

investment

factor incomes

factors of production

Government revenues are greater than government subsidies.

Government revenue exceeds government borrowing.

Government spending equals government revenue.

Government spending exceeds government revenue.

The common tax levied on countries within a region

The amount of subsidies received by local exporters

The tax levied on imports entering a country

The amount of goods that can be imported into a country

can produce more of that commodity than any other country

has a larger share of the market for that commodity than any other country

can produce that commodity at a lower opportunity cost than any other country

accounts for a greater percentage of global sales of that commodity than any other country

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.

zero

equal to imports

less than imports

greater than imports

-$38 M

$20 M

-$ 8 M

$48 M

the demand for its imports rises

the demand for its exports rises

its balance of trade deficit rises

its balance of payments deficit rises

neutral

inadequate

favourable

unfavourable

tax on the goods imported

limit on the price charged for imports

limit on the amount of goods exported

limit on the amount of goods imported

An agreement between Jamaica and Cuba

An agreement between St. Vincent and the Grenadines

An agreement between USA, Caribbean and Mexico

An agreement between Trinidad and each of the other Caribbean islands

Foreign direct income

Foreign direct investment

Fixed domestic investment

Floating domestic investment

EU

FTAA

CSME

CARICOM

high levels of dependency on tourism

increases in trade unions' negotiating power

government manipulation of market outcomes

the development of a competitive advantage based on price

High debt burden

High levels of unemployment

Low level of capital formation

Major producers of manufactured goods

The emergence of the Internet

The increase in levels of income

The rise in inflationary pressures

The formation of regional groupings

A decline in the prices of goods and services

An increase in the prices of goods and services

Greater access to a variety of goods and services

A reduction in the cost of providing goods and services

Globalization

Specialization

Trade unionism

Currency fluctuation