CSEC Economics Paper 2 May/June 2011 - Free CXC Past Paper with Answers

Define the term 'disposable income'.

Identify THREE major causes of inflation.

Explain THREE ways in which a trade union in your country may seek to improve the working conditions of its members.

Discuss TWO measures that a government may adopt to stabilise the economy after a recession.

Define the term 'tariff'.

List THREE factors that influence imports to a country.

Explain TWO factors that can affect the value of a floating exchange rate.

Distinguish between a 'managed exchange rate' and a 'fixed exchange rate'.

Define the term 'gross domestic product'.

Identify the FIVE items used in calculating gross domestic product when using the expenditure approach.

Explain FOUR ways in which a recession can affect the gross domestic product in your country.

Using a numerical example, show how "nominal output" and "real output" differ.

List THREE factors that can cause a change in demand.

Distinguish between a 'change in quantity supplied' and a 'change in supply'.

State TWO benefits to be gained from a country's membership of the World Trade Organization (WTO).

For EACH of the benefits stated in (c) (i) above, explain how it can be helpful to the economy of your country.

Discuss TWO negative effects on Caribbean economies which can result from a loss of preferential trading arrangements.

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

List THREE characteristics of money.

Explain TWO benefits of moving from a barter system to one which uses money as legal tender.

Discuss TWO ways in which the use of electronic payments impacts consumers and businesses.

Define EACH of the following terms:

Economic integration

Debt burden

List THREE benefits of large-scale production.

Identify TWO characteristics of a mixed economic system.

Explain TWO disadvantages of a mixed economic system.

Discuss TWO benefits that your country may gain from its membership of the CARICOM Single Market and Economy (CSME).