Csec Pob June 2006 P1.pdf

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1.

Which of the following statements explain why a barter system restricts exchange?

I. II.

m.

S.

There must be a coincidence of wants. Thecomrnoditiesusedarenothomogencous. It is difficultto di vi de certain com-

(A)· (B)

(C)

A rate of exchange must be deter-

(D)

mined. (A) (B)

(C) (D)

III and IV only l, llandlllonly I, Ill and IV only

6.

.

3.

N,leasureofvalue Medium ofexchange ind!Vistbility Storeofv~ue

In the Caribbean, many people are hired for sugar-cane farming and very little equipment isused. This.industrycanBESTbedescribed as (A) (B) (C) (D)

7.

lal>ourintensive havinghighcapitalinput havinglowcapitalinput capitalintensive

Which ofthefollowingcharacteristics ofthe sole trader type of. business is NOT ldvantageoustothe owner?

Which of the. following categories would·

subsidisedlnealsforemployees fall under? .

(A) (B)

(A) ·

Wagesandsalaries

(B) (C) (D)

Wo~n'&COlllpensation

(C) (D)

Secrecy Unlimited liability Lowoperational cost · Ownership of all profits

Dutyallowance Fringebenefits 8.

4.

Tom who has 200 shares in a company that produces beer Alfred who is running a business of his own Mary whoiscanyingonahairdressing shopjointlywithhersister Lucywhoownsaprivatesecretarial school

I and II only

WhichoneofthefollowingisNOTafunction of money? (A) (B) (C) (D)

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Inwhichofthefollowingsituationswouldthe ~vidualhavelimitedliability?

modities '

IV.

-

Which of the following outcomes is LEAST iikelytoresultfromgrowthinanorganization?

The type of business environment most typicaloftheConunonw~thCaribbeanarea

is

(A) (B)

(C) (A) (B) (C) (D)

CC:llpotatestate

(D)

Increased capital investment Moredivisionoflabour Greaterproductivity Increased communication

mixedeco\I~

«ntrallyplanned perfectly.competitive

CSEC POB June 2006

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IV.

Receiving thegoodspurohased Givingareportoftheqllalityofgoods received Applying the principles involved in costin,g goo\ls K=ping.~ iiwentory

(A) (B) (C) (D)

Finance Purchasing Stock control f\iartceting

L II. Ill.

l
. 11.

Which ofthe following responsibilities must be ass~ by .the management of a company? I.

IL

m.

ily

IV.

Determining dividends to be paid to shareholders

(A)

Ionly I and IV only I, II and IV only I, II, ID and IV

(B) (C) (D)

S<',iecting ol>j~tives and the procedures for achieving goals is.referred t0as

(A) .

plannirlg

(B) (C) (D)

o.rganimng

Maximising effidency and creating surpluses Maintaininggoodcommunicationand human relations Producinggoodsofamarketablequal-

Item 14 refers to the graph below.

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oonlIOlling

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20

aOui~tciry'i'l'hecompanyis.fµlfillillg;·· :its' >. ' :'-':,:;\ ,,

.. '

12.

I.

N

2

4

6

8 10 12 14 Quantity in uriits

According to the information given in the graph above, the equilibrium price in cents is

14.

(A) (B) (C) {D)

For employees to produce attheirm;iximum, which ofthefollowing isimPQrWnt'Z .

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b8"kedon~R$oringaschcci1cricket~amin

soclalo]>ligation economic obligation ebligationtocustomers obligation to maximise surpluses

L

70 60

50 40 ·~ 30

'rhe manager:oLl»BC csnipany :has em·

(A) (B) (C) (D)

y

:i 80

motivating

20 50

ro 80

Suitable workingc~l!~tions Holidaywj~jJay · Goodhum"1trelatio~

IV.

Creating surplus

(A) (B) (C) (D)

I and II only I andllI only

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15.

a

An essential fea~ of vruid contracti$ that (A) (B)

(C) {D)

18 ..

the offer has been accepted by the offereeeitherin writingororally. .a counteroffer has been made by the offeree to the offeror. the offer is made in writing by the offeror. the offer has beencominunicated to the offerce.

UnQ«whichofthefollowingconditionscan a contract be terminated 7

. I. II. III. IV. (A) (B)

(C) (D)

16.

I. II.

m.

Co-ordinatingtheworkofemployees Delegating work to subordinates Controlling employees and raw

IV.

(B)

(C)

Ensuring thatemployeesjoin a trade

(D)

wlion

(B)

(C) (D)

(

1bemoneyusedfortheday-to-dayoperalions of a business is called (A)

mat.erials

(A)

land II only IIancfIDonly I, II and m ~Iy II, III and IV only

20.

17.

Wbichofthefollowing'Situationswouldoccur 'ffa contract for the sale of goods becomes void?

.•

1: II.

.!"':'· -

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(B)

III.

IV.

(A) (B) (C) (D)

Theprospectivebuyerbecomesthe 9wner. The prospective buyer does not become the owner. The seller has the right to keep any ·money or goods which have been given to him in this transaction.. Thesellermustretumanymoneyor goods given to him by the pros~tive buyer for the transaction. land ill only land IV only II and III only ·. UandIVonly

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(Q !D)

21.

\

fixed capital nominal capital floalingcapital working capital

Anincreaseintheproductivityoflalx>urinlhe Caribbean region means that (A)

('

land II only I and III only Ilandillonly lllandIVonly

Which of the foll~wing are func'ions ofmanagcment?

19.

r-

Both parties agree to do so. · Onepartyloseshisjeb. The subject matter ceases tO exist. The subject matteris illegal.

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thevalucofou!Put~manisgreater

than before. n.orefactorsofproductionareavailable forproduction. agreaternumberofthepopulationis now employed. bothpopulatiClnandthevalueofoutput are decreasing.

I I i

A, Band C have dissolved the~partnership whichisworth$12000. Proceedsaredivided intheration3 :2 :.1 respectively. How much . dOeSBget'I (A) (B)

(<;:) (I))

•

$1500 $3000

I

I

$4000

I

$6000 .

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~ ~lll'.Ply oflabol;ll'.i~,ad.versely affected by

(A) (B)

(<':) (D)

27,.

Afirmexpandstoachieveinternaleconomies ''' of seal~ because it wantS to

an increase in migration areductionin small scale operations an inc~•inpopu\ation a reduction in the school-leaving age ·

(C)

increase costs ofproduction increase worker's wages decrease the quantity" of goods it

(D)

decrease its costs per unit

(A) (B}

produces 23.

The factor ofprodl.1.ction which earns interest is (A) (B)

land capital

WhatistheMOSTlikelyeffectofasubstantial increase in the duty on cars on the car-buying public?

(C) · (p)

labour enterprise

(A}

28.

24.

An increase in the use of public transportation A decrease in car purchases An increase in the number of car

(B) (C}

Which of the following is a fixed asset?

pools (A) (B)

(C)

(D)

Bicycle for private use Washing machine forresale Motorcarforfinuly use Vanfordeliveryofgoods

29. ., .

25.

•

Whicbof:the.f"olla,vingproductiveactivities is LEAST li~y tO ~ cGnductedon a large

Which of the following practices does NOT 'reswtfro,mmechaniziltion? Production is increased. Goods are produl)ed to a standard . , .~) . . ·pattern. · ·f'eaple ·may be ,needed for manual (C) work. The specialist becomes more skilled ' ,(D) inhiswork. (A)

.scaleinth,e·~region?

Acilpilal·intensiveindustryischaracterized

30. 26.

A decrease in the consumption of gasolene

(D)

by

The. location of an extractive industry is LEAST affected by

large amounts ofcapital and very little labour large amountsoflabour and very little

(A)

(A) {B)

(C)

(P)

proximity t() large sltoppi~g areas proximity to sources ofrawmaterials · availability of an abundant labour supply

(B)

capital all capital and no labour capitalandlabourinthesameproportion

(C) (D)

,~prese11cep{g0Qdf()adsanddrain-

age

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31.

Whichofthefullowingactivitiescarriedoutin will NOT be 1mderthe supervision of a themarketingmanager?

firm

(A) (B} (C)

{D) 32.

(D)

'(A) (B) (C) (D)

Packaging Advertising Distti"bution PurchaSing

Allpersonscanbecalledconsumersbecause they (A) (B) (C)

Which ofthefollowing is NOT a function of the retailer?

36.

A 'purchase order' is a

37.

(A) (B) (C)

satisfythemsdves ha\t.....Wnts U$0Soods buy goods

(D)

The~RIMARY function ofadvertising is to

(A) (B) (C) · (D)

34.

. communicate information prornotebrand loyalty ensurewiderdisttibution ofgoods p.rotriotcpublicrelations

• (A) (B) (C) (D}

Which ofthefollowingpractices is LEAST likelyto be described as good public relations foracompatty? · ·· ' · 39. (A) (B) {C) (DJ

35.

Theofferirtgofscholarships Reduction in price to retailers · SportsorshipofaSteel band Hostingofan anntial sport event

Wholesaletrade Importtrade Retailtrade Foreign trade

Import licenee BiUofladirtg · .. Charterparty. · ·· . AirwaybiH ,•;,

A posH:lated ch.eque

is one-which

. (A)

wasV\'rittertnrilongerthansixmonths

(B)

isdated bythe businessman to agree with the date ofthe document requestingpaymertt isdatedbythebankdatesontheday the cheque is presertted forpayment is dated for payment at a future date

ago

(C)

In whichofthefollowing types oftrade can the hire purchase methodofbuyingbeused? (A) (B) (C) (D)

I

statementofferingto buy goods notificationofgoodsreceived statementofdebtsoutstanding .requestforadditionalgoods

Which of the following documents would have been used by a ship owner who agreed, for a: sum of mortey, to provide a ship to transportashipmentofcargofromoneportto anothe.:'?

38.

33.

Sellinginsmallquantities Providing a local supply ofgoods Preparing goods for resale Transporting goodstosuitable storage facilities

(D)

Ifanexparterquotes pricesCIF, it means that the

40.

(A) (B) (C) (D)

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exporter pays the freight importerpllysthefreight exporterpaysinsurance and freight · importerpaysinsuranceandfreight

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Forwhichofthi(Ollowingre<15onsisasmall.. ·retmloutletabletosurvivede1>Pitecompetition from large department stores? L

n.

m.

45.

I. II.

It sells goods at cheaper prices. It buys goods at lower costs.

Itbenefits from personal contact with

IV.

customer$. It has lower overhead costs.

(A) .(B) (C) (D)

landllonly II and III only m·andIVonly IandIV only

Acourttry willrestrictwpol:tationofcertain itemsinordertodowhichofthefollowing? Assist local industries. Prevent similar items' from being consumed by its citizens. Encourageuse oflocalresources. Alterthelifestyleofitscitizens.

ill. IV.

CA) ·. Ionly

46.

42.

One of the MAJOR functions of a central . ''ba;nkis to (A) (B)

{C) (D).

I and III only II and Ill, only II and IV only

(B) (C) (D)

When a high property tax is leviedin a country it is most likely to have all of the following effectsEXCEPTto (A)

ismenotesandcoins accopt4Cpositaccounts mlikeloansaooadvances issue stocks and shares

reducethenumberofnewbuildings erected. · encourage business firms to set up business·elsewhere create ·additional revenue for the · ,government entice citizens into buying more land

(B). . (C)

43.

(D)

WbiChof.d\efollowingCANNOTbeusedas c0lta1etalf{')robtainingalpanfroniafinancial institution?

(A):· '' ·A'JiW~d home with i~tiranc~ . (B). (C) . •(I:))

44. . ·•

Consumption tax Incemectax · Estate duty Water rate

(A)

(8)

{C) (t>)

tojfie lenderis that it

WhenaGovemmentsubsidizesacommodity, it means Iii.at the Government

(A)''. c;::le solcl if the borrower fails to

(A)

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~!~:;t~fu!:~ani!~11ofthestare ~(aj)li~lt~~ibefirtan~ialpositionof

. diel)O~ ·:er.

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·'@:1)''; ilfii>K9\ltis hl-.; borrower's chance of · · ,;etii~~·~io,~· .

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48.

.

Bas limited the importation of the commodity. has levied a ·purchase tax on the

(B)

conunodity.

is helping to pay part of the production cost ofthe,coinrnodity. is encouraging the production of a substitute for the commodity.

(C) (D)

·

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Which of tb.e following is an example of

fudil"ec.tulxati®?

"coverage· M•insUranilepolicywith a cash value . Anamountina.fixeddepositaccount ·1.;.¢ga11y owned propertynotcovered · by in8urance

~'MQSTimportaniuseofoollateraisecurity

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47.

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49.

The price of an article is usually high when there is a (A) (B)

(C)

(D)

53.

large quantity for sale and few people wanting to buy small quantity for sale and few people wanting to buy small quantity for sale and many people wanting to buy large quantity for sale and many people wanting to buy

· Which ofthe following practices wouldNOT contribute to the economic development and . growthofacommunity? (A) (B)

(C)

(D) 50.

(B) (C)

(D)

buyers pay reasonable prices for goods sellers are satisfied with the price paid.for their goods at the ruling market price, buyers do not want to add to the stock ofgoods they already have atcutrentprires, the amount ofgoods buyerswishtobuyequalsthe.amount sellers Want.to sell

54.

(B)

(C) (D)

(A)

exports are higher in value Ulan

(B)

imports are greater in value than exports there are no restrictions to trade importedgoods are cheaper

(D)

Which of the following market situations is typically found whe.re there is a large number of produeers and consumers? (A)

(Ii) (C) (D)

Perfect market . Irnperfettmlilfket Oligqioty. . Monopoly

imports (C) (D) 56.

If a Caribbean country should.devalue its currency, itisMOST!ikelythat (A)

(B)

(C) (D)

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countries with large populations not havingsufficientgoods . the varying resources of different regions thefact.thatci:luntries desired to have greater contact with each other the grearneedfor foreign exchange by rnostcountries .

(A)

(C)

52.

ral resources Provision ofloans and technical assistance for establishing local businesses Increased importation of consumer goods Provision of more infrastructure within the country

A 'market' in economic terms is defined as

(B)

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Incre~d use of the country's natu-

A country has a favourable balance of trade when

a. place where tangible goods are l:>ough[ and sold a·specif\c place where buyers and sellers meet a situation which exists when buyers and sellers influence the price of goods the businesscentre ofthe community

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International trade owes its origin to (A)

55. 51.

I

Marketequilibriumexists when (A)

K

•

its imports would become cheaper andit$:exports would become more expensive its . imports would become more expensive and its c:oxports would becomel)heaper both its hnports and exports would become.more expensive both its imports and exports would become cheaper ·

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The term 'economic dualism' defines economy in which one sector is (A) (B) (C)

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59.

Which ofthe following are MAJOR economic problems facing many Caribbean countries today? I. II. III.

'IV.

High levels of unemployment Adverse_balanccofpayments Low productivity infoanufacturing Lackofcapitalforirivestment

' ~. Which ONE of these methods may govefome1ituse to ceduce unemployment'! (A) (B)

highly dependent on foreign capital overpopulated while the other is underpopulated technologically advanced while the otheris technologically retarded highlydependenton local capital

(C) (D)

60. 58.

·.. -.

(CJ (D)

.

I and II only II and III only I, II and 1V only I, II, III, and IV

I.

IL III. IV. (A)

(BJ

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(D)

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Increased. interest rares on borro\\-·er".'.>

Adverse Balance of Paymcrn problems can be corrected by

(CJ (A) (BJ

Unemployment levy on firms Increases in income tax Deflation of the economy

tariffs quotas devaluatiou revaluation I and II only II and III on! y I, III and IV only I, II and III only