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

	Creado por Nikolas Reece hace más de 6 años

2016 (Section 1 - Nature of Economics) CSEC Economics Apunte sobre Section 1 Past Paper Questions, creado por Nikolas Reece el 24/11/2017.