CSEC Economics Paper 2 May/June 2008 - Free CXC Past Paper with Answers

Define the term 'credit union'.

List THREE functions of money.

Explain TWO functions of the Central Bank in your country.

Explain how the development of money over time has helped to improve the way in which monetary transactions are conducted.

Define the term 'standard of living'.

List THREE factors that may impact on the economic growth of a country.

The following table refers to economic data for Country X.

Economic Data for Country X

Calculate the Gross Domestic Product (GDP) of Country X.

Discuss TWO ways in which a government can use fiscal policy to promote economic growth.

Define EACH of the following terms: (i) Unemployment (ii) Inflation

Unemployment

Inflation

List THREE types of unemployment.

Identify TWO possible effects that the removal of preferential trading arrangements may have on an economy. Discuss TWO measures that can be used to address the consequences of the removal of preferential trading arrangements.

Identify TWO possible effects that the removal of preferential trading arrangements may have on an economy.

Discuss TWO measures that can be used to address the consequences of the removal of preferential trading arrangements.

Explain TWO ways in which the CARICOM Single Market and Economy (CSME) can contribute to the economic development of a named Caribbean country.

Define EACH of the following terms: (i) Price elasticity of demand (ii) Income elasticity of demand

Price elasticity of demand

Income elasticity of demand

Identify TWO determinants of price elasticity of demand, and ONE determinant of income elasticity of demand.

Using an example, explain what a zero cross elasticity result represents.

Discuss the likely impact of a significant rise in oil prices on EACH of the following: (i) Research in bio-fuels (ii) The type of vehicles purchased

Research in bio-fuels

The type of vehicles purchased

Differentiate between the 'terms of trade' and the 'balance of trade' of a country.

List the component parts of the balance of payments.

Explain TWO measures that can be used to correct a balance of payments deficit.

Discuss TWO ways in which a rise in oil prices will affect the balance of payments of a non-oil producing economy.

Define EACH of the following terms: (i) Economics (ii) Production possibility frontier

Economics

Production possibility frontier

Identify THREE factors that will cause an outward shift in the production possibility frontier.

Explain ONE factor that will cause the production possibility curve to move inward. Using a production possibility frontier, explain the concepts of 'opportunity cost' and 'efficiency'.

Explain ONE factor that will cause the production possibility curve to move inward.

Using a production possibility frontier, explain the concepts of 'opportunity cost' and 'efficiency'.

Suggest TWO reasons why the concept of 'scarcity and choice' is important for individuals making economic decisions.