Section 1 Past Paper Questions

2017 Question 1 Define the term ‘opportunity cost’ (2) List THREE groups that make choices in an economy. (3) With the aid of a diagram, explain how a production possibility frontier shows increasing opportunity cost. (6) An individual’s disposable income has increased. The choice for the individual arises from the equation Y= C + S. Explain these choices. (4)

2016 Question 5 (a) Define EACH of the following terms: Economics                                                                                                                                           (2) Money Cost                                                                                                                                       (2) (b) List the THREE main sectors in an economy.                                                                                          (3) (c) Explain the difference between ‘increasing opportunity costs’ and ‘constant opportunity costs’.                                                                                                                                                                                         (4) (d) Describe the impact on the production possibility curve of a country in the following situations occur: (i) There is heavy unemployment                                                                                                             (2) (ii) Large-scale migration occurs in developed countries.                                                                                (2) Draw a diagram of the production possibility curve and label it to show increasing opportunity costs.

2016 (Specimen Paper) Question 1 Define EACH of the following terms: Economics (2) Production possibility curve (2) Scarcity (2)   Outline FOUR factors that consumers take into consideration when making economic decisions. (8) Discuss, using an illustration, how the production possibility curve can be used to show the following: Increasing Opportunity Cost (3) Inefficiency (3)

2015 Question 2 Classify the items listed below as EITHER ‘goods’ OR ‘services’. Hairdressing Hairdryers Tourism Island tours Tractors                                                                                                                                        [5 marks] Explain the THREE resource allocation decisions that are often made under a free market system.                                                                                                                                                                            [6 marks] Discuss ONE benefit of entrepreneurial talent that can accrue to Caribbean economies.                                                                                                                                                                                                [4 marks]

2015 Question 8 Identify the central problem in economics.                                                                                  [1 mark] Define EACH of the following terms: Need                                                                                                                                             [2 marks] Want                                                                                                                                             [2 marks] Opportunity cost                                                                                                                      [2 marks] An 18 year old has just completed CAPE studies and has to decide on her future. Explain TWO economic factors that will influence the decisions the student makes.                                 [8 marks] Draw a production possibility curve/frontier diagram showing the following: Decreasing opportunity costs                                                                                             [3 marks] An efficient point                                                                                                                     [1 mark] An unattainable point                                                                                                            [1 mark] Total 20 marks

2014 Question 1. Table 1 shows the combinations of sugar and bananas that Country X is capable of producing using ALL of its resources. TABLE 1: PRODUCTION CAPPABILITIES OF COUNTRY X   State the name of the curve that s normally used to represent the information in Table 1.                                                                                                                                                                                            [1 mark] (i) Moving from the combination A through E in Table 1, state if opportunity cost is decreasing, increasing or constant.                                                                                                                         [1 mark] (ii) State the maximum amount of sugar that can be produced if 40 000 tons of bananas are produced.                                                                                                                                                   [1 mark] (iii) State TWO factors that would cause the curve identified in (a) above to shift inwards.[2 marks] Use the information given in Table 1 to determine whether for EACH of the production combinations stated below, Country X is operating efficiently or not if it is currently producing (i) 2000 tons of sugar and 15 000 tons of bananas                                                                      [2 marks] (ii) 1 000 tons of sugar and 15 000 tons of bananas                                                                    [2 marks] Explain TWO factors that should be considered before opening an internet café.      [6 marks]                                                                                                                                                                 Total 15 marks

2013 question 7 (a) Define EACH of the following terms: Efficiency Wants                                                                                                                                           [4 marks] (b) List THREE examples of the needs of society.                                                                       [3 marks] (c) With the aid of diagrams, explain the impact of the following situation on the production possibility curve of a country that produces bananas and sugar cane. The economy is experiencing heavy unemployment. The government invests in a new fertilizer that improves the yield for banana farmers only.                                                                                                                                                                        [8 marks]  (d) A university graduate receives his first pay cheque. Discuss how scarcity, choice and opportunity cost arise for the graduate on his first shopping trip to the city.       [5 marks]

2012 Question 1 (a) Define the term ‘Economics’.                                                                                                              (2 marks) (b) List the THREE main components of an economy.                                                                              (3 marks) (c) Explain TWO factors that a consumer has to take into account before buying a good.                                                                                                                                                                                                (6 marks) (d) Using a diagram of a production possibility curve, explain how opportunity cost can be illustrated.                                                                                                                                                     (4 marks)

2011 Question 1 (a) Define the term ‘sole trader’.                                                                                                      (2 marks) (b) List THREE advantages of being a sole trader.                                                                       (3 marks) (c) Using a diagram, explain the circular flow of income.                                                         (6 marks) (d) Describe TWO demerits of a centrally planned economy.                                                               (4 marks) Total 15 marks

2010 Question 6 (a) Define the term ‘economics’.                                                                                                      (2 marks) (b) Distinguish between the terms ‘scarcity’ and ‘choice’                                                      (5 marks) (c) The diagram in figure 1 below shows the production possibility frontier for petroleum and sugar.         (i) Explain what is taking place at Point A in the diagram.                                                                (4marks)         (ii) Outline TWO measures that a producer can take to attain the production level indicated at point C in the diagram.                                                                                                                      (4 marks) (d) Discuss TWO economic factors that may encourage a producer of bread to remain in bread production.                                                                                                                                          (5 marks) Total 20 marks

2008 8. (a) Define EACH of the following terms: Economics Production Possibility frontier                                                                                            (4 marks) (b) Identify THREE factors that will cause an outward shift in the production possibility frontier.                                                                                                                                                                                 (3 marks) (c) (i) Explain ONE factor that will cause the production possibility curve to move inward. (2 marks) (ii) Using a production possibility frontier, explain the concepts of ‘opportunity cost’ and ‘efficiency’.                                                                                                                                                                                      (6 marks) (d) Suggest TWO reasons why the concept of ‘scarcity and choice’ is important for individuals making economic decisions.                                                                                                    (5 marks)             Total 20 marks