Professional Documents
Culture Documents
FORM TP 20141701
CARIBBEAN
. . . . . . ... ,
0
_TEST CODE
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EXAMINATIONS
02216010
MAY/JUNE 2014
COUNCIL
1 hour 30 minutes
( 09 JUNE 2014 (a.m.) )
This test consists of 45 items. You will have 1 hour and 30 minutes to answer them.
2.
3.
Do not be concerned that the answer sheet provides spaces for more answers than there are
items in this test.
4.
Each item in this test has four suggested answers lettered (A), (B), (C), (D). Read each item
you are about to answer and decide which choice is best.
5.
On your answer sheet, find the number which corresponds to your item and shade the space
having the same letter as the answer you have chosen. Look at the sample item below.
Sample Item
Prime cost is calculated by adding direct factory expenses to the cost of
Sample Answer
(A)
goods used
goods bought
(B)
materials used
(C)
materials produced
(D)
The best answer to this item is "materials used", so answer space (C) has been shaded.
6.
If you want to change your answer, erase it completely and fill in your new choice.
7.
When you are told to begin, tum the page and work as quickly and as carefully as you can.
If you cannot answer an item, omit it and go on to the next one. You may come back to that
item later. Your score will be the total number of correct answers.
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8.
9.
02216010/CAPE 2014
-21.
autonomous investment
autonomous consumption
marginal propensity to save
marginal propensity to consume
E =Y
IN
2.
I
I
I
(C)
(D)
National income
5.
Consumer
spending
(B)
3.
NT
OT
MT
VT
(C)
(D)
Households
Government
Foreign sector
Financial sector
(C)
(D)
4.
Price flexibility
Wage flexibility
Downward stickiness
(A)
I and II only
I and III only
II and III only
I, II and III
(B)
(C)
(D)
6.
MT
OT
VT
MT
Business cycle
Spare capacity
Wage and price flexibility
Compensating differentials
-3-
Aggregate
expenditure
E=y
AS 2
1
~~
te~~te
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ei--~e~
Price
level
Ye
Output
Income
7.
8.
9.
10.
GDP Deflator
Expenditure Method
Producer Price Index
Consumer Price Index
11.
2
2.5
3
3.5
(B)
10
100
150
(C)
(D)
-412.
AS
(A)
'!l
~
.....
AS 1
,AS2
(J
Price
level
AD2
National income
yl
(B)
13.
..
'!l
y2
AD1
Output
(J
AS
(A)
(B)
(C)
(D)
National income
AS
1
2
3
4
(C)
'!l
14.
(J
c
~
(A)
(B)
National income
(C)
(D)
(D)
..
'!l
~
~
(J
c
~
National income
-5-
18.
Interest
rates
(B)
(C)
ie --
(D)
Quantity of loanable funds
15.
16.
(D)
-.
17.
19.
20.
Stay-at-home housewives
Full-time university students
Those who are seeking employment
New prisoners sentenced to hard
labour
economic boom
cost-push inflation
.
.
econom1c recesswn
demand-pull inflation
-----
23 .
Rate of
interest
public debt
fiscal policy
a budget deficit
monetary policy
L(Md)
24.
0
21.
22.
Money balances
(A)
(B)
(C)
(D)
(A)
(B)
(C)
(D)
25.
(C)
(D )
-7Item 26 refers to the graph below which shows the classical model for a labour market.
Wage
rate
We~------------~
26.
The broken line between the ASL and the N curve represents the
(A)
(B)
(C)
(D)
27.
Number of workers
Items 28-29 refer to the following diagram which shows national income, tax revenues and
government spending over a three year period.
Tax revenues
OJ)
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Government
spending
<!<...<!<
.. =
~ ~
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..
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Year 1
28.
Year2
Balanced budget
Monetary pol<icy
Budget surplus
Budget deficit
Year3
29.
National
income
deficit budget
budget surplus
monetary policy
balanced budget
GO ON TO THE NEXT PAGE
0221601 0/CAPE 20 14
30.
33 .
(A)
(B)
(C)
(D)
(B)
(C)
(D)
34.
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1ft~\
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31 .
Rate($)
Q5
(C)
(D)
D$
35.
Dollars ($)
(C)
(D)
32.
(A)
(B)
(C)
36.
(A)
(B)
(A)
(B)
(D)
(C)
(C)
Q2
Q3
(D)
Q4
Economic union
Common market
Customs union
Free trade area
capital account
current account
balance of trade
balance of payments
(D)
(A)
(B)
-937.
(A)
(B )
(C)
(D)
Price1 D
sl
'-I
P1 1
"
WS
Q1
38.
(C)
(D)
39.
Quota
Tariff
Embargo
Exchange controls
(C)
(D)
40.
(D)
II.
III.
(A)
(B)
(C)
(D)
-~
42.
Quantity
41.
World Supply
~OT 2. ~- --
Trade liberatiza
Technological
Reduce factor muvlll.&.,
Liberalizatio
- 1043.
Jamaica is a large-scale producer and exporter ofbananas. However, it faces increasing competition
for export markets from producers in countries like Costa Rica and Guatemala.
Which graph shows the impact of competition on the exchange rate of the Jamaican dollar against
the U.S. dollar? (Prices are quoted in U.S. dollars).
44.
Which of the following is an invisible export in the balance of payments ofTrinidad and Tobago?
(A)
(B)
(C)
(D)
- 11 -
Item 45 refer to the following diagram showing the demand and supply of the poun
Fixed and Floating Exchange Rates
/$US
I~
r ----------------~------ - -- ---
~ -- - --------- -- - - - - - - - - -
"'"
-1-- -
~- ------
'DI
0~------------------------~~~--~--------~------------------~~
16
10
12
14
Quantity of (billions)
45.
Assuming a floating exchange rate regime, before the United States increased their desire for
exports from the United Kingdom, the initial equilibrium was
(A) .
(B)
(C)
(D)
1
2
3
4
END OF TEST
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