Professional Documents
Culture Documents
CSEC Economics 2007 06 (June) P1
CSEC Economics 2007 06 (June) P1
The best answer to this item is "human behaviour" , so answer space (C) has been blackened
Ifyou want to change your answer, be sure to erase your old answer completely and fill in yournew
choice.
When you are told to begin, turn thepage and work as quickly and as carefully asyou can. Ifyou cannot
answer an item, omit it and go on to the next one. You can come back to the harder item later. Your
score will be the total number ofcorrect answers.
This test consists of60 items. You will have 75 minutes to ansvver them.
7. Do not be concerned that the answer sheet provides spaces for more answers than there are items in
this test.
8. The use ofsilent electronic calculators is allowed.
theirjointmonthly income
the possibility ofa jobpromotion for
Peter
Sita's best friend also has a, new
home
the high cost of renting where they
now live
1216010/F2007
GO ON TO THE NE
XT PAGE
Hybrid electric cars are more expensive than 25. In which of the following situ ons will a
22.
cars which use gasolene,I-Towever, a major normal supply curve for farm produce slope
feature of el ectri c cars is that they are pollia- upwards from left to right?
0 l.
ti on free. Which costs will fall as consumers
(A) Farmers' profit margins increase as
start using electric cars?
price increases.
(A) Total fixed cost (B) Farmers are willing to increase supply
(B) Marginal cost as demand increases.
(C) Private cost (C) Fai mers pass on increased cost to
(D) External cost consumers.
Farmers are willing to produce more
as price increases.
23. All of the folloWing are features Of perfect. •
•coMpetition EXCEPT
Which of the f011e•Wirig is NOT TRUE of
(A)' selling of homogeneousproducts perfect competition? •
(B) freedom ofentry and exit
(C) many buyers and one seller Firms are price takers.
perfect knowledge of market Products are homogenous.
(D) .
conditions Firms engage inprice discrimination.
There are no barriers to entry.
0 Q
Which ofthe following will NOT occur when
24.. Which ofthe following is MOST likely to be there is market failure? .
responsible fOr the shift in the supply curve
from S to S,? (A) A decline iri social welfare
(B) An 'increase in poverty throughout
An increase in advertising of soft the economy
drinks (C) Increasing levels ofunemployment
A fall in the price o f sugar • among skilled and unskilled labour
Increased wages for workers in the (D) Adequate amounts of all goods and
soft drink industry services for consumers
An increase in income
(A) $200 M
YEAR RATE OF WAGE (B) $220 NI
INFLATION INCREASES (%) (C) $2101A
2003 5 20. (D) . $260M:
2004 - 10 20
2005 10
2006 15 5 . Some developing countries are trying to
achieve; economic growth :with less
3 In which year was the increase in real wages governmental participatipn. This is MOST
GRF_A I I - likely to be achieved through increased
40. Which ofthe following measures is MOST 43 - Large firms achieve savings in unit costs from
I ikelyto reduce inflation? advertising or packaging. This is a result of
which ofthe following economies ofscaie?
(A) An increase in bank lending
(B) An increase in import duties (A)
(C) A reduction in government (B) Marketing
expenditure (C) Managerial
(D) A reduction indirect taxation (D) Technical -
Q ..Co..od >C.
44. With reference to the diagram above, Which O'f the following is NO
: state T a•
which ofthe following is TRUE.. characteristic of Caribbean econom
ies?
52. Chasa Cosmetics seeks to marke 56. All ofthe following are examp
t itsproducts les ofprimary
in the United States. Such a mo products EXCEPT
ve is made
MOSTlikely through
bai 'Kite
the establishment of the Carib furniture
bean bananas
Single Market and Economy
direct foreign investment in the Un petroleum
States ited
effective marketing strategies
trade liberalization
). .0.98
) 1.2
(C) 2.
(D) 120
Item 60 refers to th
e table below below
Domestic Product fo which shows manuf
r four countries. acturing output as a
share of Gross
YEAR COUNTRY A
1960 COUNTRYB
28% COUNTRY C
1980 40% COUNTRY D
23%. 29% . . 29%
1990 34 %
19% 26°A
- 31% 28%
21% 23
60. What trend is comm %
on to ALL countries
shown in the table?
(A) Employment in the
(B) manufacturing sect
There was a declin or increased.
(C) e in the Gross Domes
There was a declin tic Product.
(D) e in the sale ofman
There was a declin ufactured products.
e in manufacturing
output as a share of
Gross Domestic Pr
oduct.
IF YOU FINISH
BEFORE TIME
IS CALLED, CH
ECK YOUR WO
RK ON THIS TE
ST.
I216010/F 2007