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CSEC Economics June 2015 P1 PDF
CSEC Economics June 2015 P1 PDF
Which ofthe following rewards accrues to Item 5 refers to the following diagram
the factor of production called lcapital'? which shows afirm's total fixed cost (TFC),
total variable cost (TVC) and total cost
(A) Rent (rc).
(B) Profit
(C) Wage (000) Cost
(D) Interest
U (B)
Banking and tourism
Tourism and agriculture (A) mixed
(C) Banking and construction (B) planned
(D) Manufacturing and fishing (C) traditional
(D) free market
(A) declined
(B) increased
7. Point X on the graph represents (c) fluctuated
(D) remained constant
(A) economic growth
(B) unemployed resources
(C) an efficient combination 11. An advantage of a planned economic
(D) an unattainable combination system is that
9. An outward shift in a production possibility t2. Economic choices are made because
curve can be caused by an
(A) people's needs exceed their wants
(A) increase in wages (B) resources are unlimited and
(B) increase in prices
people's wants are limited
(c) increase in imports (c) resources are scarce while people's
(D) improvement in technology
wants are unlimited
(D) people may not always have the
money to conduct business
(A) 0
(B) 0.4
(c) I
(D) 2.5
/
21. Open competition on a worldwide scale Item 26 refers to the following table which
facilitates shows the market demand and supply of
potatoes at given prices.
(A) high levels of dependence on
tourism Price of Market Market
(B) increases, in trade unions' Potatoes Demand Supply
negotiating power ($) (000 kg) (000 kg)
(C) government manipulation of 4 700 100
market outcomes 500 200
8
(D) the development of comparative
l2 350 350
advantage
l6 200 530
20 r00 700
22. Money is long-lasting, easy to carry 26. What is the equilibrium price?
around and can be changed into smaller
denominations. Which of the following (A) $4
characteristics ofmoney are being described (B) $8
above? (c) $12
(D) $16
(A) Durability, portability, liquidity
(B) Durability,scarcity,uniformity
(C) Durability, portability, divisibility
27. 'Globalization' may be MOST accurately
(D) Portability, uniformity,divisibility defined as the
r +i Househlds i - r
Ill '----r 35. If Country X has a comparative advantage
X, rPayment in the production of computers over
I I for
goods Country Y then
' and sen'ices
l..l (A) Country X will export all its
L- J computers
-l_Flrms ,t+ (B) X nor Country
neither Country
Y should specialize in the
31. Line X represents payment production of computers
(C) the opportunity cost of producing
(A) for goods taken on credit computers is higher in Country
(B) to the factors of production X than in Country Y
(C) of taxes to the government (D) the opportunity cost of producing
(D) to financial institutions for loans computers is lower in Country X
. than in Country Y
(A) The formal sector 41. Which of the following is NOT a service?
(B) The foreign sector
(C) The informalsector (A) Education
(D) The financial sector (B) Health care
(C) Motorcycle
(D) Hairdressing
(A) High debt burden 47. The International Monetary Fund (lMF)
(B) High levels of unemployment functions as a
(C) Low levels of capitalformation
(D) Major producers of manufactured (A) human rights organizatibn
goods (B) regulatory authority for
international trade
(C) large, multinational corporation
44. Which of the following is NOT a benefit maximizing its efficiency
of internationaltrade? through globatization
(D) financial institution that provides
(A) A larger market size strategic guidance to countries
(B) A wider variety of products to ensure financial stability
(C) lncreased efficiency of localfirms
(D) Increased dependency on other
countries
50. Which of the following phrases BEST 54. The restriction of international trade
explains the term 'tariff? through tariffs, embargoes, quotas and
exchange controls is referred to as
(A) The amount of subsidies received
by local exPorters (A) globalization
(B) The level of tax that is levied on (B) protectionism
imports entering a country (C) a bilateral agreement
(C) The amount of goods that can be (D) structural adjustment
imPorted into a country
(D) The common ta:c levied by countries
on member countries within a 55. Country A is experiencing a balance of
region payments deficit. Which of the following
measures could be taken to reduce the
deficit in the short-term?
51. Which of the following will contribute
to a surplus on the balance of trade of a (A) Reduce the volume of exPorts to
other countries.
country?
(B) Engage in trade with other low-cost
producers ofgoods.
(A) The value ofexports is greaterthan
the value of imPorts' (C) Increase the importation of goods
(B) The value of imports is greaterthan
from other countries.
the value of exPorts' (D) lmpose restrictions on goods
(C) The volume of exports is greater imPorted from other countries'
than the volume of imPorts'
(D) The volume of imports is greater
than the volume of exPorts'
END OF TEST
IF YOU FINISH BEFORE TIME IS CALLED, CI{ECK YOI'R WORK ON THIS TEST.
0t216010/F 2015