CSEC Economics Paper 2 May/June 2018 - Free CXC Past Paper with Answers

List THREE characteristics of a monopoly market structure.

State the factor of production under which EACH of the following is classified:

Water

Network of pipes

Describe TWO ways in which a monopoly market structure differs from a monopolistically competitive market structure.

Explain how the existence of the water company as a monopoly for the distribution of water can cause market failure.

Define EACH of the following terms:

Factors of production

Long-run

Identify ONE type of business organization.

Explain TWO internal benefits that a firm receives from expanding production in the long-run.

Explain how division of labour can be applied to a large bakery.

Define the term 'fiscal policy'.

List THREE types of unemployment.

Explain TWO types of inflation.

Determine the component of gross domestic product (GDP) that is affected by EACH of the following activities.

Your aunt buys a house.

A family buys a new car.

Farmer Joe grows tomatoes for his family.

Domestically made sugar is sold to a bakery in a foreign country.

State the meaning of EACH of the following abbreviations:

CET

WTO

Identify ONE non-tariff barrier to trade.

Define EACH of the following terms:

Balance of trade

Currency appreciation

Discuss TWO policies that can be implemented to reduce a balance of payments deficit.

Table 2 below shows trade transactions for Cariland.

TABLE 2: BALANCE OF PAYMENTS TRANSACTIONS FOR CARILAND

Calculate the current account balance.

Calculate the capital account balance.

State whether there is a balance of payments deficit or surplus.

Define EACH of the following terms:

Economic integration

Multilateral agreement

List THREE examples of economic integration.

Outline FOUR benefits of globalization to firms.

Small size is a barrier to trade at an international level. Discuss how regional integration can overcome this problem.