CSEC Economics Paper 3 May/June 2021 - Free CXC Past Paper with Answers
Free CXC Economics Paper 3 May/June 2021 past paper from 2021. 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 3 May/June 2021 - Free CXC Past Paper with Answers
Free CXC Economics Paper 3 May/June 2021 past paper from 2021. 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 3 May/June 2021 Questions
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.
Question 1 (10 marks)
INSTRUCTION: Read the following case and answer ALL the questions.
CASE STUDY
The Impact of Hurricanes on the Economy
Hurricanes can cause a lot of damage. They affect both developed and developing economies. The small Caribville economy of Caribville is still trying to recover from hurricane Bella that affected the island in September 2019. Caribville received help from developed economies and regional institutions such as the CDB. CARICOM has also been helping to collect resources for Caribville. However, it still needs more help to build back its economy.
Caribville's newspaper reported several impacts on the economy because of hurricane Bella. There was a reduction in most of the economic resources required to produce goods. Skilled workers were lost. There was a decrease in the amount of crops produced in the agricultural sector. The national debt increased along with a decline in FDI. Finally, there was an increase in unemployment and a decline in economic growth.
Although Caribville received assistance, residents fear the return of an even more damaging hurricane. As a result, they felt the need to discuss ways to protect themselves financially in their local communities.
(a) State the meaning of EACH of the following acronyms.
[10 marks]
CDB
[1 mark]
CARICOM
[1 mark]
FDI
[1 mark]
Define EACH of the following terms.
[4 marks]
Economy
[2 marks]
Economic growth
[2 marks]
Question 2 (12 marks)
Explain why a developed economy may be in a position to help Caribville's economy recover from hurricane destruction.
[4 marks]
Explain how the loss of workers affected labour productivity in Caribville's agricultural sector.
[4 marks]
Explain how hurricane Bella caused an increase in the national debt of Caribville.
[4 marks]
Question 3 (8 marks)
Suggest one informal method of savings that the citizens of Caribville could use to protect themselves financially in their local communities.
[1 mark]
Explain how informal savings can assist citizens in protecting themselves against the impact of hurricanes.
[3 marks]
Caribville's local newspaper reported a decrease in the amount of crops produced in the country.
[4 marks]
Suggest which sector would be MAINLY affected by this reduction in production.
[1 mark]
Explain ONE way in which hurricanes could affect unemployment in the agricultural sector.
[3 marks]
Question 4 (10 marks)
Table 1 shows the projected increases in GDP for Caribville every 5 years from 2025 to 2040. Use the information in Table 1 to answer the questions that follow.
Table 1: CARIBVILLE'S EXPECTED GDP 2025–2040
| Year | GDP (millions of dollars) |
|---|---|
| 2025 | 15 |
| 2030 | 30 |
| 2035 | 35 |
| 2040 | 40 |
In 2025, Caribville's GDP is expected to be 15 million. If there is no hurricane in 2030, GDP is expected to be 30 million. However, if there is a hurricane, GDP is expected to be 20 million.
Scenario 1: There is no hurricane Calculate the economic growth for 2030 in both scenarios.
[3 marks]
Scenario 2: There is a hurricane
[3 marks]
Sketch a production possibility curve to show a loss of economic resources as a result of a hurricane.
[4 marks]