(D) 2. (D) rv. (C) (B) (C) GOONTOTHENEXTPAOE

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(1)

1.

2.

..).

4.

When an economist says that a product has utiiity, he means that it is

(A) desirable (B) very useful (C) costlytoobtain (D) able ro satisr; a want

Productivity can be measured by (A) Jn2uts

Outputs (B) Revenue

Outputs (C) Ou touts Inputs (D) ln2uts

Revenue

Subsidised meals for employees would fall under which ofthe following categories') (A) Fringe benefits

(B) Duty allowance (C) Wages and salaries (D) Worker's compensation

The MAIN reasons for the existence of the public sector are to

I.

l I.

I II.

rv.

(P..J

(B) (C)

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piovide essentiai services regulate business activity compete with the private sector promote economic growth and

development I, II and III only i, II and l'i only L III and I\/ only II, III and IV only

5. A debenture holder is one who (A)

(B) (C)

(D)

has first claim on any profits and is paid a fixed rate of dividend must be paid any amounts cviing in

the following ye"ar

is paid a fixed rate of interest if the company makes profits

is entitled to a fixed rate of interest whetherornotthecompany makes profits

6. A partnership that requires additional capital can legally do which of the following~

(A) Issue bonds (B) Issue debentures

(C) Borrow money from the bank (D) Advertise shares to the public 7. In the formationofacompany, the Memoran-

dum of Association states notonly the name ofthe company but also the

(A) (B)

(C) (D)

amount of capital to be issued way the directors are chosen dividends to be paid per share expenses incu1Ted in the-formation u ;·

the company

8. The PRIMARY role of the personnel department of a firm is to

(A) (B)

(~, L;

compile a magazine highiighting outstanding workers

promote recreational activities for

·workers

assist employees in understanding industrial relations

(D) hire, recruit, train. and motivate workers

GOONTOTHENEXTPAOE

CSEC POB June 2007 P1

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9.

10.

IL

Which of the following is LEAST likely to result from growth in an organization?

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

Greaterproductivity More division oflabour Increased communication Increased capital investment

Which of the foliowing statements BEST describes an authoritarian leader?

(A) (B)

(C) (D)

Makingdecisionswithoutconsultation Allowing workers to plan theirown

work

Consulting those I ikely to be affected by the decision

Willingness to take suggestions

Good leadership is exemplified by which of the following activities?

I.

l l.

Ill.

IV.

Motivating subordinate staff Providing more goods at lower cost Giving direction to the organization Implementing established plans

(A) I, II and Ill only (B) !, II and IV only (C) I, Ill and IV only (D) Il, Ill and IV only

12. Which o fthe fo!lowingmanagementpractices would contribute to the success o fa business?

!.

IL l fl.

IV.

(A) (B)

CC)

(D)

Pricing atn1axi1num mark-up Paying attention to the quality of goods

or services sold

Cotnmunicating with employees Earning maxim um profits forowners

i and II only II and

m

only {!and JV only JI, III and

r'I

oniy

'i···

13.

14.

15.

16.

Which one of the following is NOT a function of money?

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

Measure of value Medium of exchange Indivisibility

Storeofvaiue

What do workers aim to achieve by coilective bargaining?

I.

rr.

ill.

rv

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

Improvement and maintenance of working conditions

Greater opportunities for promotion More capital intensive methods of

production

Education and training foremployees

[,II and !Vonly [,II and lII only lII and IV only [and IV only

Which of the following features niust a simple contract have?

[_ Offer I I. Acceptance Ill. Documentation IV. Consideration

(A) I and fl only (B)

rr

and

rv

only (C) l, lI and JV only (D) I, I!, lII and IV

Which of the following practices are characterjstic of a free economy?

I. Private ownership of assets II. Central planning

III. Price fixing · IV Freedom to contract

(A) I and III only (B) I and IV only (Cl !land III o'nly (0) ll and IV only

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17.

18

19.

20.

21.

The policies ofacompany are formulated by fr1e

(A) shareholders (B) managers (C) directors

(D)

auditors

A contract may be discharged by L

!I.

Ii L lV (A) (B)

(C)

(D)

performance lapse of time

offer and acceptance breach

land II only

!I{ and IV only l, ll and IV only JI, Ill and IV only

The MAIN purpose of production is to (A)

(3) (C) (D)

make profits provide jobs

build more factories satisfy people's wants

The money used fortheday-to-day operations ofabusiness is called

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

fixed capital nominal capital floating capital working capital

To which industry does a firm involved in food processing belong?

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

Extractive

!'vf?J1ufacturing co'nstructive

22.

24.

An increase in the productiviry oflabourin the Caribbean region means that

(A) agreaternumberofthepopulacion is (B)

(C)

(D)

nowempioyed

in ore factors of production are 3.'v"ail- ab ie for production

both population and the value ofout put are decreasing

the value of output perrrian is greater than before

Which of the following practices may be MOST appropriate in solvii1g the unemployment problem in developing countries where the labour force is large?

I. Greaterproduction through increased labour

II. Increased mechanisa1ion

Ill. Increase in vocation3-l training progran1mes

IV. Increase in salaries (A)

(B) (C) (D)

I only I and Ill only

!I and !II only

!I and IV only

Which otthe following are functions of the entrepreneur?

r.

II

lll.

IV.

(A)

CB) (C) (D)

Providing finance needed for production

Co-ordinating the fac1ors of production

Undertaking risks by nnticipating demand

Ensurlngthat workers.are unionised

-

.

I and II only II and IV oniy I, II and III only L III and IV oniy

GOONTOTHENEXT?AGE

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25.

27.

'-1Vhich of the fOllcwing isthesimplestformof production?

(A) (8) (C)

(D)

Subsistence

Domestic consumption Surpiusandexport Cottage industry

Prirnary production is concerned with the (A)

(8)

distribution of goods

provision of goods to meet essential needs

(C) provision ofrawrnate1ials (D) manufacture of goods

Which of the following LEAST affects the iocation ofan. ext~active industry'!

(A) (8)

(C)

(D)

Proxi111ity

io

large shopping areas Availability of an abundant labour

supply

Proximity to sources of raw mate1ials The presence of good roads and

drainage

23. VJhich of the foliovving are disadvantages of sn1all firms?

!.

Il.

rIL IV.

Ernpioyees feel a sense of belonging They have unlimited liabilil"f

ft is difficulttoarrange financing They have personal ties \Nith

customers (A) I 3.nd Ii only (B) I and

m

on!y IC)

(J)

I! and !II only iII and TV only

·~;

29.

30.

3 R.

32.

33.

Which of the following practices does NOT result from mechanization?

(A) (B)

(C) (D)

Production is increased

Goods are produced to a standard pattern

People may be needed for manual work

The speciaiist becomes more skilled in his work

The standard o fliving of acountr~y is measured by the

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

index number per capita income national product national income

The variables ofa marketing mix can easily be remembered by referring to the tOur P's which are:

(A) (B) (C)

(D)

Product, price, place. promotion Product, publicity, purchase. price Product, prornotion, package, prici.::

Product, package, place, pro1TJotion

ALL persons can be called consun1ers because they

(A) (B)

(C)

(D)

use goods have wants sell goods buy goods

Businessmen usually employ ·1oss leaders' to (A) give a free gift with each cash

purchase

(B) reclaim losses made in the saie of goc"'Cis

(C) attract more customers by sei ling a few items at a loss

(D) promote new products 1n the

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.

.

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34.

35.

36.

37.

,

.

. J {

Which of the fol1ov1ing must be taken into account when packaging goods for retail?

[. Cost I I. Brand

!II. Protection

!V. Attractiveness (A) I and Ill only (B) I and IV only

(C)

III and !V only (D) !, ll, Ill and IV

Which of the following contracts must be rriade by deed?

(A)

0

Billsofexchange (B) Insurance contracts (C) Transferof shares (D) Conveyances ofland

Which of the following is NOT a fonction of the retailer?

(/\)

(B) (C) (D)

Transporting goods to suitable stor- age facilities

Providing a local supply of goods Preparing goods for resale Selling in small quantities

A' purchase order' is a (A)

(B) (C) (D)

statement offering to buy goods notification of goods received statement of debts outstanding request for additional goods

. f~tL-7 -

··\

38.

39.

40.

41.

Which ofthefollmving documents would give title to goods?

r Bill ofsale

L

IL Bill of materials III. Bill ofiading IV. Bill of sight (A) I only (B) Ill only (C) II and IV only

(D)

IllandlVonly

Whichofthefollowing instrumentsofpayment would a firm use to effect the speediest transferoffunds from one country to another"

(A) (B)

(C)

(D)

Cheque Bank draft Money order Telegraphic transfer

A post-dated cheque is one which (A)

(B)

(C)

(D)

vvas written no longer than six months ago

is dated to agree with the date of the document requesting payment is dated by the bank dates on the day the cheque is presented for payment

is dated for payment at a future date

The bank service which allows a customer to make payments by cheques is the

(A) current account (B) savings account (C) deposit account (0) capital account

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'

42_

43.

44.

45.

46.

The monthly payments collected by an insurance company on behalf of its policy holders are known as

(A) (B) (C) (DJ

deposits premiums instalments endowments

Which of the following forms of payment is legal tender?

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

Cheque Banknote Money order

0

Postal order

Collateral is MOST needed when (A)

(B) (C) (D)

taking out an insurance policy ordering goods from a foreign manu-

facturer

borrowing from a financial institution buying stocks and shares

Which of the following is legislation designed to protect the consumer?

(A) Negative List (B) Hire Purchase Act (C) Customs Ordinance (D) Banking Act

Export licences are issued mainly to (A)

(B)

(C) (D)

encourage the local businessmen to produce more goods for export indicate to the importing country that

'· the goods are ofahigh standard enable the government to control the

flow of goods being exported indicate to the importing country the

price at which the goods are to be sold

- 7 - 47.

48.

49.

Which of the following measures are used by government to redistribute in~.ome?

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

Custom duties and levies Consumption tax and tariffs PA YE and National Insurance Excise duties and Value added tax

Which form of taxation is imposed on goods produced in a country?

(A) (B) (C)

(D)

Excise duty Preference duty Excise drawback Customs drawback

Which of the following are MAJOR functions of the Central Bank?

I.

II.

lll.

IV.

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

Acting as the goverr1rnent' s bank Keeping deposits ofall commercial

banks

Giving loans to private individuals and companies

Helpingtoregulatethe money supply of a country

I, Il and III only I, fl and IV only I, lII and IV only II, fII and JV only

50. Market equilibrium exists when (A)

(B) (C)

(D)

buyers pay reasonable prices for goods

sellers are satisfied with the price paid fortheir goods

attheruiingmarketprice, buyers do not want to add to the stock of goods they already have

at current prices, the amount of goods buyers v,rish to buy equals the amount sellers want to se11

(7)

r:

!

51. Whichofthe following features are associated with perfect com petition?

52.

53.

54.

L Many buyers and sellers II. Fewbuyersandseilers

III. Freed om of entry into the market IV. Barriers to entry into the market (AJ

(BJ (C) (D)

[and lII only [andiVonly ll and !ll only II and IV only

Which ofi:he following characteiistics BEST describe a perfectly competitive market?

(A}

(BJ (C) (D)

Few sellers and many buyers Difficultentry to new markets Production ofalmost identical goods Imperfect consumer knowledge of

prices

Which of the fo I lowing actions ofgovernment is MOST likely to lead to an improvement in the standard ofliving?

(A) (8)

(CJ

(DJ

Abolishing taxes on low incomes Giving tax incentives to business Increasing the income tax rate Printing more money

Which ofthe following is NOT a benefit of international trade?

(A) Agreatervarietyofgoods is obtained from overseas.

( 8) Political linksaredevelopedwithother countries.

IC) Tm port restrictions can be imposed on foreign it~ms.

(D) ·. Producers are able to increase their market size.

- 8 -

55.

56.

57.

Item 55 refers to the fo 11 owing tab le.

Real Exports Rii:ai lrn ports y<) ... •a• (Sm)

fSm)

---i

i991 72 7(J '

'

1992 83 79

1993 80 86

1994 95 88

In what year was there an unfavourable balance oftrade9

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

1991 1992 1993 1994

ff a Caribbean country should devalue its currency, it is MOST likely that

(AJ

(8)

(C) (D)

its imports would becon1e cheaper and its exports would become more expensive

its impot1s ·wouid becoine more expensive and its exports ·..vou ld become cheaper

both its i1nports and expotl:s vvould become more expensive

both its imports andexpons would become cheaper

The MAJOR aims ofrhe Eurnpean Union (E.U .) are free moven1ent of

L [J.

I I 1.

IV.

(A) (B)

(C) (D)

Goods Capital People Services I and II only rand

m

only

I, II and III only I. II, III and

rv

GOONTOTHENfXTPAOE

(8)

58.

59.

Which ONE of the following methods may government use to reduce unempioyment?

(A) (B)

(C)

(D)

increase interest rates on borrowing Increase income tax

Deflation of the economy Employment levy on fin:ns

Investment can be defined as (A)

(B)

(C)

a stock of goods existing at a given time

an addition to the capital stock of a country

a stock of raw materials which have fallen

(D) 'a stock of goods owned by the

governn1ent

- 9 -

60. Which of the following car\ be classified as benefits ofnationalisation?

I.

II.

Ill.

IV.

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

Profits will remain in the country Essential industries will be state-

owned

Employment will be provided for citizens

The enterprise will have joint ownership

I, II and Ill only I, II and IV only 1, Ill and IV only II, Ill and IV only

IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST.

·.

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0

I

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