CSEC Economics Paper 2 May/June 2023 - Free CXC Past Paper with Answers

List THREE non-price factors, other than its own price, that impact demand for a good.

List THREE factors that impact the price elasticity of supply.

For EACH of the following pairs of goods, explain which good has more price elastic demand.

A red motorcar or all motor vehicles

Jewellery or prescription medicine

An increase in gas prices today or a tax on gas a year after the tax is introduced

Laptops or electricity

Study Figure 2 which represents the market for coffee in Joeland and answer questions (d) (i) and (ii) that follow.

Figure 2. Market for coffee in Joeland

On the diagram in Figure 2, label the demand curve with the letter D and the supply curve with the letter S.

On the diagram in Figure 2, identify the market equilibrium.

On the diagram below, illustrate how a severe storm in Joeland would impact the coffee market.

Identify TWO characteristics of EACH of the following types of market structures.

Perfect competition

Monopoly

Monopolistic competition

Using economic concepts, explain the problem created when community members are asked to make a voluntary monthly contribution for public internet access.

Indicate whether the following goods and services are merit or public goods.

Primary school provided by a private organization

The national army of a country

Health care

Lighting of a village along main streets

Assume there is no government in the town of Roadville. Table 1 shows the demand and supply schedules, as well as the marginal social benefit for road repairs. The marginal social benefit is the total benefit to society from consuming additional units of a good.

TABLE 1: DEMAND AND SUPPLY SCHEDULES AND MARGINAL SOCIAL BENEFIT FOR ROAD REPAIRS IN ROADVILLE

Identify the cause of the market failure in Roadville's road repair market.

Using the information in the table, explain the market failure identified in (d) (i).

List FOUR qualities of money.

Define the term 'financial sector'.

Ann goes to the commercial bank to withdraw money to buy a new dress. The price of the dress is $150. She also checks the amount she has saved towards buying a house in five years. She will need to take a loan to buy the house which she will repay in the future.

Identify the FOUR functions of money and state how Ann's actions relate to EACH of the FOUR functions. (i) Function 1 (ii) Function 2 (iii) Function 3 (iv) Function 4

Function 1

Merryville and Summerville can both produce banana chips and chocolate. Summerville uses less labour than Merryville to produce each of the goods. The opportunity costs of producing one unit of each good for each country are listed in Table 2.

TABLE 2: OPPORTUNITY COSTS PER UNIT OF OUTPUT

(i) Identify the country that has the comparative advantage in producing banana chips. (ii) Identify the country that has the comparative advantage in producing chocolate. (iii) Identify the country that has the absolute advantage in producing banana chips. (iv) Identify the country that has the absolute advantage in producing chocolate. (v) Suggest the country that should export banana chips. (vi) Suggest the country that should export chocolate.

Identify the country that has the comparative advantage in producing banana chips.

Identify the country that has the comparative advantage in producing chocolate.

Identify the country that has the absolute advantage in producing banana chips.

Identify the country that has the absolute advantage in producing chocolate.

Suggest the country that should export banana chips.

Suggest the country that should export chocolate.

Describe the difference between a bilateral agreement and a multilateral agreement.

Identify the term described by EACH of the following phrases.

"The increase in a country's real output of goods and services over a period of time, usually one year".

"A set of economic reforms that a country must adhere to in order to secure a loan from the International Monetary Fund and/or the World Bank".

"A type of trade bloc or agreement between nations that allows products, labour and technology to move freely across borders".