Free CXC Economics Paper 2 May/June 2016 past paper from 2016. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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CSEC Economics Paper 2 May/June 2016 - Free CXC Past Paper with Answers
Free CXC Economics Paper 2 May/June 2016 past paper from 2016. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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Every question from this paper as text. See the answers and worked solutions. Questions are the property of the Caribbean Examinations Council; Caribbean AI is not affiliated with CXC.
Define the term 'diseconomies of scale'.
[2 marks]
In which time period does 'economies of scale' occur?
[1 mark]
Identify TWO types of diseconomies of scale.
[2 marks]
Explain how the THREE resource allocation decisions are made in a free market economy.
[6 marks]
Identify TWO 'fixed costs' and TWO 'variable costs' associated with setting up a hairdressing salon or a barber shop.
[4 marks]
Define the term 'market failure'.
[2 marks]
List THREE causes of market failure.
[3 marks]
Explain the impact on the demand curve when the (i) price of a good falls (ii) income of the population rises.
[6 marks]
price of a good falls
[3 marks]
income of the population rises.
[3 marks]
The price of Good A rises from $2 to $4, causing a decrease in demand for Good B from 10 units to 5 units. (i) Using the information provided, calculate the cross-price elasticity of demand. (ii) Using the result obtained in (d) (i) above, determine the classification of Good A in relation to Good B.
[4 marks]
Using the information provided, calculate the cross-price elasticity of demand.
[3 marks]
Using the result obtained in (d) (i) above, determine the classification of Good A in relation to Good B.
[1 mark]
Define the term 'globalization'.
[2 marks]
List THREE challenges of e-commerce to the consumer.
[3 marks]
CARICOM is currently a common market. Using the characteristics of the stages of economic integration, justify this statement.
[6 marks]
Explain TWO benefits to Caribbean states of being a member of CARICOM.
[4 marks]
Define the term 'balance of payments'.
[2 marks]
List THREE types of exchange rate regimes.
[3 marks]
Distinguish between 'investment income' and 'foreign direct investment'. (ii) Indicate where 'investment income' and 'foreign direct investment' occur in the balance of payments.
[6 marks]
Distinguish between 'investment income' and 'foreign direct investment'.
[4 marks]
Indicate where 'investment income' and 'foreign direct investment' occur in the balance of payments.
[2 marks]
Explain TWO ways in which devaluation can improve a country's balance of payments deficit.
[4 marks]
Define EACH of the following terms:
[4 marks]
Economics
[2 marks]
Money cost
[2 marks]
List the THREE main sectors in an economy.
[3 marks]
Explain the difference between 'increasing opportunity costs' and 'constant opportunity costs'.
[4 marks]
Describe the impact on the production possibility curve of a country if the following situations occur: (i) There is heavy unemployment (ii) Large-scale migration occurs in developed countries.
[4 marks]
There is heavy unemployment
[2 marks]
Large-scale migration occurs in developed countries.
[2 marks]
Draw a diagram of the production possibility curve and label it to show increasing opportunity costs.
[5 marks]
Define the term 'price elasticity of supply'.
[2 marks]
List THREE characteristics of a perfectly competitive market.
[3 marks]
Identify TWO types of market structures OTHER THAN perfect competition.
[2 marks]
Explain the difference between an 'increase in supply' and an 'increase in quantity supplied'.
[4 marks]
Explain TWO factors that may affect the supply of a good.
[4 marks]
Describe how the market for cigarettes can contribute to market failure.
[5 marks]
Define the term 'recession'.
[2 marks]
Identify TWO withdrawals from the circular flow of income.
[2 marks]
List THREE types of unemployment.
[3 marks]
Explain TWO ways in which fiscal policy can be used to reduce unemployment in the tourism sector.
[8 marks]
The retail price index is given as 115 and gross domestic product is currently recorded at $500 billion. (i) Calculate the real output. (ii) What does the retail price index imply about inflation?
[5 marks]
Calculate the real output.
[3 marks]
What does the retail price index imply about inflation?
[2 marks]
Define the term 'barter'.
[2 marks]
List THREE disadvantages of bartering.
[3 marks]
State TWO functions of the financial sector in an economy.
[2 marks]
Explain how the central bank would use EACH of the following methods to increase the money supply: (i) Discount rates (ii) Reserve requirement ratios
[8 marks]
Discount rates
[4 marks]
Reserve requirement ratios
[4 marks]
Using examples, explain how the use of credit cards has improved the function of money as a medium of exchange.
[5 marks]