CSEC Economics Paper 2 May/June 2010 - Free CXC Past Paper with Answers

Define the term 'comparative advantage'.

List THREE reasons why countries trade.

Discuss TWO problems that can arise with the balance of payments of non-oil-producing Caribbean countries as a result of rising oil prices.

Explain TWO ways in which devaluation can impact the small, open economies of the Caribbean.

Define EACH of the following terms:

Gross capital fixed formation

Net property income from abroad

State the information that is needed to calculate national income at market prices, apart from the information provided in Table 1 above.

Discuss TWO factors that can cause the Gross National Product (GNP) of a country to be greater than the Gross Domestic Product (GDP).

Calculate the Gross National Product for Country X using the information in Table 1 above.

Define the term 'market structure'.

List TWO consequences of a market failure.

State THREE characteristic features of a monopoly.

Discuss TWO factors that would affect the elasticity of demand for wheat.

Explain TWO consequences of having a cartel in the energy sector.

Define the term 'economics'.

Distinguish between the terms 'scarcity' and 'choice'.

The diagram in Figure 1 below shows the production possibility frontier for petroleum and sugar.

Figure 1: Production Possibility Frontier for Petroleum and Sugar

Explain what is taking place at Point A in the diagram.

Outline TWO measures that a producer can take to attain the production level indicated at Point C in the diagram.

Discuss TWO economic factors that may encourage a producer of bread to remain in bread production.

Differentiate between a 'treasury bill' and a 'bond'.

List THREE functions of money.

Explain how inflation can affect ALL the functions of money.

"The central bank is the lender of last resort".

Discuss this statement in relation to the central bank's role in managing the monetary sector in the economy.

List THREE benefits that Caribbean economies can gain from e-commerce.

Outline TWO challenges that Caribbean economies might face in developing e-commerce.

Discuss TWO measures that can be employed by Caribbean governments in order to enhance e-commerce in the region.

For a named Caribbean country, briefly discuss TWO reasons why that country may need to implement a structural adjustment programme (SAP).