CARIBBEAN EXAMINATIONS COUNCIL Caribbean Advanced Proficiency Examination
Economics Syllabus Effective for examinations from May/June 2010
Correspondence related to the syllabus should be addressed to: The Pro-Registrar Caribbean Examinations Council Caenwood Centre 37 Arnold Road !ingston " #amaica $%&% Telephone 'umber: ()7*+ ,.-*7/0 1acsimile 'umber: ()7*+ ,*7-0,7 E-mail address: cxcw2ocxc%org $ebsite: www%cxc%org
Copyright 4 ..) by Caribbean Examinations Council The 5arrison 6t% ichael 88 ///") 8arbados
CXC A20/U2/08
This document CXC A20/U2/08 re!aces CXC A20/U2/0" issued in 200"# $!ease note that the sy!!a%us &as revised and amendments are indicated %y ita!ics and vertica! !ines#
'irst (ssued 200" )evised 2008
$!ease chec* the &e%site &&cxc#or+ &&cxc#or+ for for udates on CXC,s sy!!a%uses#
CXC A20/U2/08
This document CXC A20/U2/08 re!aces CXC A20/U2/0" issued in 200"# $!ease note that the sy!!a%us &as revised and amendments are indicated %y ita!ics and vertica! !ines#
'irst (ssued 200" )evised 2008
$!ease chec* the &e%site &&cxc#or+ &&cxc#or+ for for udates on CXC,s sy!!a%uses#
CXC A20/U2/08
RAT&9'AE RAT&9'AE%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% / A&6 %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%% 6!&6 A'; A8&&T&E6 T9 8E A66E66E;%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% PRE-RE<=&6&TE6 91 T>E 6?A8=6%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%3 %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%% 6TR=CT=RE 6TR=CT=RE 91 T>E 6?A8=6%%%% 6?A8=6%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%% 3 UNIT 1:
MICROECONOMICS
MODULE 1: METHODOLOGY: DEMAND AND SUPPLY %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%0 %%%%%0 MODULE 2: MARKET STRUCTURE, MARKET FAILURE AND A ND INTERVENTION@@%%%/ MODULE 3: DISTRIBUTION THEORY %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%% %%%%%/7 UNIT 2:
MACROECONOMICS
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CXC A20/U2/08
T
T
he Caribbean AdBanced Proiciency Examinations (CAPE+ are designed to proBide certiication o the academic Bocational and technical achieBement o students in the Caribbean who haBing completed a minimum o iBe years o secondary education wish to urther their studies% The examinations address the sDills and Dnowledge acuired by students under a lexible and articulated system where subFects are organised in /-=nit or -=nit courses with each =nit containing three odules% 6ubFects examined under CAPE may be studied concurrently or singly or may be combined with subFects examined by other examination boards or institutions%
The Car!!ea" E#a$"a%&"' C&(")* &++er' %hree %-e' &+ )er%+)a%&". The +r'% ' %he a/ar0 &+ a )er%+)a%e 'h&/" ea)h CAPE U"% )&$-*e%e0. The 'e)&"0 ' %he CAPE 0-*&$a, a/ar0e0 %& )a"00a%e' /h& hae 'a%'+a)%&r* )&$-*e%e0 a% *ea'% '# U"%', ")*(0" Car!!ea" S%(0e'. The %hr0 ' %he CAPE A''&)a%e Deree, a/ar0e0 +&r %he 'a%'+a)%&r )&$-*e%&" &+ a -re')r!e0 )*('%er &+ 'ee" CAPE U"%' ")*(0" Car!!ea" S%(0e' a"0 C&$$(")a%&" S%(0e'. F&r %he CAPE 0-*&$a a"0 %he CAPE A''&)a%e Deree, )a"00a%e' $('% )&$-*e%e %he )*('%er &+ re(re0 U"%' /%h" a $a#$($ -er&0 &+ +e ear'. Re)&"4e0 e0()a%&"a* "'%%(%&"' -re'e"%" )a"00a%e' +&r CAPE %&/ar0' %he a/ar0 &+ %he C&(")*5' A''&)a%e Deree " ""e )a%e&re' $('%, &" re'%er" %he'e )a"00a%e' a% %he '%ar% &+ %he (a*+" ear, hae %he$ )&"+r$ " %he re(re0 +&r$, %he A''&)a%e Deree %he /'h %& !e a/ar0e0. Ca"00a%e' /** "&% !e a/ar0e0 a" -&''!*e a*%er"a%e' +&r /h)h %he 00 "&% a--*.
CXC A20/U2/08
CXC A20/U2/08
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♦
Economics is the study o how society proBides or itsel by maDing the most eicient use o scarce resources so that both priBate and social welare may be improBed% The subFect thereore coBers the study o "00(a*', households irms goBernment and international economic institutions as they attempt to maDe better use o scarce resources% The study of Economics enables individuals to develop a better understanding of the economic issues which affect them and the world in which they live. It will also enable students to offer informed comments on economic matters. The knowledge gained from this course in Economics will be of lifelong value to the student. The influence of the subject on all areas of activity should stimulate the individual to continue reading and conducting research in Economics. It is recognised that persons doing this course may be drawn from different backgrounds and may possess different interests. Some may wish to study Economics as preparation for further specialisation in the subject. Others may study the subject to complement other subject disciplines, such as, careers in finance, accounting or law. Some students may see the subject as one worthy of study in its own right. 6tudents o Economics will be able to contribute signiicantly to economic and social deBelopment in the Caribbean a"0 %he /0er /&r*0 by acting as catalysts or wider awareness o social and economic issues%
A study o Economics at the CAPE leBel will be o beneit to all students by introducing them to the philosophy which underlies eBeryday economic interactions% The study will also train the student to thinD logically critically and impartially on a Bariety o contentious issues%
CXC A20/U2/09
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The syllabus aims to: /%
promote understanding o the basic principles and concepts o economics which are accepted in large measure by economists while recognising that the ield is changing continuouslyG
%
deBelop an appreciation o the Barious methods used by economists in analysing economic problemsG
3%
deBelop an understanding o the global economy and o the relationships between rich and poor nations with respect to international trade and inance and the most important international inancial institutionsG
0%
encourage students to apply economic principles theories and tools to eBeryday economic problems or example inlation unemployment enBironmental degradation '('%a"a!*e 0ee*&-$e"% and exchange rate instability and to contribute meaningully to any dialogue on these issuesG
"%
encourage students to apply economic theory to the critical issues which aect the small open Caribbean-type economyG
*%
encourage students to eBaluate contentious economic issues so that decision-maDing may be inormed by logical a"0 )r%)a* thinDingG
6.
'e"'%4e '%(0e"%' %& %he "ee0 +&r e%h)a* !eha&(r " %he )&"0()% &+ e)&"&$) %ra"'a)%&"'.
♦
The assessment will test candidatesH sDills and abilities to: /%
identify and explain economic theories principles concepts and methodsG
%
interpret, analyse and solve economic problems using economic models and conceptsG
3%
develop structural and reasoned expositions and eBaluate economic theories and policies%
CXC A20/U2/09
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♦
S())e''+(* -ar%)-a%&" " %h' )&(r'e &+ '%(0 /** !e e"ha")e0 ! %he -&''e''&" &+ &&0 er!a* a"0 /r%%e" )&$$(")a%&"' '7**'. A &&0 +&("0a%&" " Ma%he$a%)' /&(*0 !e a" a''e% %& '%(0e"%' 0&" %h' )&(r'e. ♦
The 6yllabus is arranged into two =nits% Each =nit consists o three odules each odule reuiring ". contact hours% UNIT 1: MICROECONOMICS
M&0(*e 1 M&0(*e 2 M&0(*e 3
8 8 8
Me%h&0&*&: De$a"0 a"0 S(--* Mar7e% S%r()%(re, Mar7e% Fa*(re a"0 I"%ere"%&" D'%r!(%&" The&r
UNIT 2: MACROECONOMICS odule / odule odule 3
-
odels o the acroeconomy acroeconomic Pr&!*e$' a"0 P&*)e' 5rowth 6ustainable ;eBelopment and 5lobal Relations
L'%' &+ re'&(r)e' are proBided " %he '**a!(' % The lists proBide inormation that may be helpul or the study o each odule% &t is adBised that the topics listed in the sections do not necessarily ollow seuentially% Teachers may thus introduce certain concepts beore others% &t is recognised that Economics may be taught using a strictly ualitatiBe approach or a strictly uantitatiBe approach% >oweBer a proper mix o the two approaches is critical to the understanding o the subFect at this leBel% Teachers are adBised thereore that proper deliBery o the subFect would inBolBe the integration o the two approaches%
CXC A20/U2/09
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MO"ULE #$ MET%O"OLO&'$ "EMAN" AN" SUPPL' &ENERAL OB(ECTI)ES 9n completion o this odule students should: /%
appreciate the main problem o economics namely the allocation o scarce resources and the ineBitability o choiceG
%
understand the laws principles and theories goBerning demand and supplyG
3%
understand the basic tools o economic analysis%
SPECI*IC OB(ECTI)ES TOIC 1: Central ro!le" of E#ono"i#s 6tudents should be able to: /%
explain the concept o scarcityG
%
apply the concept o opportunity cost in a Bariety o real-lie situationsG
3%
explain the concept o production possibilities rontier (PP1+G
0%
use the production possibilities rontier to indicate constant returns diminishing returns and increasing returnsG
"%
account or shits in the production possibilities rontier (PP1+G
*%
dierentiate between positiBe and normatiBe economicsG
7%
outline the adBantages and disadBantages o the alternatiBe mechanisms by which resources are allocated%
CONTENT /% The meaning o scarcity ree goods and economic goods% % (a+ ;einition o opportunity cost% (b+
Choice: what how and or whom to produce%
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UNIT # MO"ULE #$ MET%O"OLO&'$ "EMAN" AN" SUPPL' +cont,d(c+
The concept o opportunity cost applied to economic agents (indiBiduals households irms and goBernments+%
3% (a+ Assumptions: maximum output attainable giBen ull employment and constant state o technology% (b+
Regions: attainable unattainable eicient and ineicient leBels o production%
0%
Production possibilities rontier: slopes and shapes%
"%
=se o production possibilities rontier to show growth and technological change%
*%
Examples o positiBe and normatiBe statements%
7%
;ierent types o economic systems: traditional marDet planned and mixed%
SPECI*IC OB(ECTI)ES TOIC 2: T$eory of Cons%"er &e"and 6tudents should be able to: /%
explain the concept o utilityG
%
explain the law o diminishing marginal utility and the limitation o marginal utility theoryG
3%
explain the meaning o indierence curBes and budget linesG
0%
explain consumer euilibrium using the marginal utility approachG
"%
explain consumer euilibrium using the indierence curBe approachG
*%
isolate the income and substitution eects o a price changeG
7%
explain eectiBe demandG
)%
deriBe the demand curBe using both the marginal utility and indierence curBe approachesG
,%
dierentiate among normal inerior and 5ien goodsG
/.%
distinguish between shits o the demand curBe and moBements along the curBeG
CXC A20/U2/09
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UNIT # MO"ULE #$ MET%O"OLO&'$ "EMAN" AN" SUPPL' +cont,d//%
identiy the actors that aect demandG
/%
explain the meaning o consumer surplusG
/3%
explain price elasticity income elasticity and cross elasticity o demandG
/0%
calculate numerical Balues o elasticityG
/"%
interpret numerical Balues o elasticityG
/*%
assess the implications o price elasticity o demand or total spending and reBenueG
/7%
state the actors that determine the price elasticity o demand%
CONTENT /%
=tility: total marginal cardinal (marginalist approach+ ordinal (indierence curBe approach+%
%
(a+ (b+
Explanation o diminishing marginal utility% The main assumptions and limitations o arginal =tility Theory%
3%
&ndierence curBes and the budget constraint (budget lines+%
0%
The law o eui-marginal returns%
"%
The point o tangency o the budget line to the indierence curBe%
*%
&ncome and substitution eects o a price change%
7%
EectiBe demand%
)%
;eriBing the demand curBe using the marginal utility as well as the indierence curBe approach%
,%
'ormal inerior and 5ien goods using the indierence curBe approach%
/.%
6hit Bersus moBements along demand curBes%
//%
Price and the conditions o demand%
/%
Consumer surplus including graphical representations%
CXC A20/U2/09
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UNIT # MO"ULE #$ MET%O"OLO&'$ "EMAN" AN" SUPPL' +cont,d-
/3%
Price income and cross elasticities%
/0%
Calculation o Balues o elasticity%
/"%
Classiication and interpretations (sign and si2e+G including the drawings and interpretations o graphs%
/*%
The implications o price elasticity o demand or total spending and reBenue%
/7%
1actors that determine the price elasticity o demand%
SPECI*IC OB(ECTI)ES TOIC ': T$eory of S%pply 6tudents should be able to: /%
identiy the actors o productionG
%
explain the term production unctionG
3%
dierentiate between the short run and long runG
0%
explain the law o diminishing returnsG
"%
calculate total aBerage and marginal physical productG
*%
explain the relationships among total aBerage and marginal physical productG
7%
identiy the stages o production as they relate to total aBerage and marginal productG
)%
calculate total aBerage marginal and other costsG
,%
explain the relationship among total aBerage and marginal costsG
/.%
explain why supply curBes are usually positiBely slopedG
//%
explain the concept o producer surplusG
/%
explain the shape o the short run and long run supply curBesG
CXC A20/U2/09
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UNIT # MO"ULE #$ MET%O"OLO&'$ "EMAN" AN" SUPPL' +cont,d-
/3%
explain returns to scale and the concepts o economies and diseconomies o scaleG
/0%
distinguish between a moBement along the supply curBe and a shit in the supply curBeG
/"%
explain the concept o elasticity o supplyG
/*%
calculate elasticity o supplyG
/7%
interpret elasticity o supply%
CONTENT /%
1actors o production: land labour capital and entrepreneurship%
%
Relationship between output and input%
3%
1ixed and Bariable actors%
0%
The law o diminishing returns%
"%
Calculation o total aBerage and marginal physical product% (6ee suggested teaching and learning actiBities+%
*%
Change in the relationship as input increases%
7%
Production and its stages as they relate to the total aBerage and marginal product including the use o graphs%
)%
(a+
1ixed cost Bariable cost total cost marginal cost aBerage ixed cost aBerage Bariable cost aBerage total cost sunD costs%
(b+
The shape o the long run aBerage total cost curBe%
(c+
ProductiBe optimum%
,%
The relationship between total aBerage and marginal cost including the use o graphs%
/.%
Relationship between uantity supplied and price%
//%
Producer surplus including graphical representations%
CXC A20/U2/09
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UNIT # MO"ULE #$ MET%O"OLO&'$ "EMAN" AN" SUPPL' +cont,d-
/%
Relationship between marginal cost and the aBerage cost in the short run and long run% Explanation o why the supply curBe is the section o the marginal cost curBe aboBe the aBerage Bariable cost and aBerage total cost%
/3%
(a+
ong run and economies o scale%
(b+
1actors determining economies o scale%
(c+
&nternal and external economies o scale%
(d+
;iseconomies o scale%
/0%
Price and the conditions o supply%
/"%
Concept o elasticity o supply%
/*%
Calculation o elasticity o supply%
/7%
Classiication and interpretation (si2e o coeicient+ including the drawing and interpretation o graphs%
SPECI*IC OB(ECTI)ES TOIC (: Market Equilibrium 6tudents should be able to: /%
explain the concept o the marDetG
%
explain marDet euilibriumG
3%
calculate euilibrium price and uantityG
0%
outline actors that cause changes in euilibriumG
"%
eBaluate the impact o price controls on marDet euilibriumG
*%
analyse the eects o taxation and subsidies on marDet euilibrium%
CXC A20/U2/09
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UNIT # MO"ULE #$ MET%O"OLO&'$ "EMAN" AN" SUPPL' +cont,dCONTENT /%
The concept o the marDet%
%
Euilibrium price euilibrium uantity%
3%
=se o demand and supply data to calculate euilibrium price and uantity%
0%
Changes in conditions o supply and demand%
"%
The eects o price ceilings and price loors on euilibrium%
*%
(a+
9!
The e++e)%' &+ %a#a%&" a"0 '(!'0e' &" $ar7e% e(*!r($. The ")0e")e &+ a" "0re)% %a#%
S%))ested Tea#$in) and *earnin) A#tivities
T& +a)*%a%e '%(0e"%'5 a%%a"$e"% &+ %he &!;e)%e' &+ %h' M&0(*e, %ea)her' are a0'e0 %& e"ae '%(0e"%' " %he %ea)h" a"0 *ear"" a)%%e' *'%e0 !e*&/ % /% 1or topic / Central Problem o Economics let students proBide examples rom personal lie the home irms and goBernment to demonstrate opportunity cost and the production possibilities rontier (PP1+% % 1or topic Theory o Consumer ;emand let students deriBe their own schedule and plot the demand curBe or commodities which they use in their eBeryday liBes% 3% 1or utility use water or any other drinD to show the dierent leBels o satisaction (utility+% =se the data to deriBe total and marginal utility curBes% 0% 1or the concept o elasticity teachers may use two types o materials one that could change in Barying degrees and the other which remains the same regardless o circumstances% Teachers should then apply this concept to marDet conditions illustrating the concepts o elasticity and inelasticity% "% 1or deadweight loss teachers may use the graphs or consumer and producer surplus to show how marDet interBention may lead to loss welare (deadweight loss+% *% 1or stages o production allow students to deriBe the total aBerage and marginal product curBes using simulated data% =se the results o the graphs to point out the dierent stages o production% An example is giBen below%
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UNIT # MO"ULE #$ MET%O"OLO&'$ "EMAN" AN" SUPPL' +cont,d+RA SO-IN+ TE STA+ES O. RO&UCTION
*i+
6tage / occurs up to the point where APP is at its maximum%
(ii+
6tage occurs rom the point where APP is at a maximum up to the point where PP is 2ero% &n this stage new worDers add to total physical output%
(iii+
6tage 3 occurs when PP is negatiBe%
The producer will operate in stage % &n stage / there is insuicient labour being used (up to the point where PP is at its maximum+ and the output per worDer is increasing% &n stage 3 the producer gets no addition to total physical output rom additional worDers% &t would be possible to haBe more total physical product with less labour applied to a ixed actor (say machinery+%
CXC A20/U2/09
UNIT # MO"ULE .$ MAR/ET STRUCTURE0 MAR/ET *AILURE AN" INTER)ENTION &ENERAL OB(ECTI)ES 9n completion o this odule students should: /% appreciate the distinction between the dierent types o marDet structuresG % deBelop awareness o the causes o marDet ailureG 3% appreciate the measures that can be adopted to reduce or eliminate marDet ailureG 0% appreciate the arguments which suggest that goBernment interBention may not necessarily improBe economic perormance%
SPECI*IC OB(ECTI)ES TOIC 1: Mar/et Str%#t%re 6tudents should be able to: /%
outline the goals o the irmG
%
explain how irms measure proitsG
3%
explain the concepts o aBerage marginal and total reBenueG
0%
explain the concept o marDet structureG
"%
outline the characteristics o the dierent marDet structuresG
*%
distinguish among the dierent marDet structuresG
7%
explain the actors that inluence the pricing and output decisions o the irmG
)%
calculate measures o industrial concentrationG
,%
interpret measures o industrial concentration%
CXC A20/U2/09
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UNIT # MO"ULE .$ MAR/ET STRUCTURE0 MAR/ET *AILURE AN" INTER)ENTION +cont,d-
CONTENT /%
Proit maximi2ation growth satisicing sales and reBenue maximi2ation marDet dominance%
%
Total reBenue total cost normal and economic (abnormal+ proit%
3%
Relationship between aBerage marginal and total reBenue%
0%
Types o marDet structures: perect competition monopoly including price discrimination monopolistic competition oligopoly and cartels%
"%
Characteristics o the dierent marDet structures% (a+ !arrer' %& e"%r< (b+ )&"%r&* &er $ar7e% a"0 -r)e< (c+ "a%(re &+ %he &&0< (d+ "($!er' &+ !(er' a"0 'e**er' G (e+ )&$-e%%e !eha&(r a"0 -er+&r$a")e %
*%
1ocus on all characteristics o the dierent marDets in addition to proit maximi2ation% (a+ E#a$-*e' &+ )*&'e a--r$a%&"' &+ $ar7e% '%r()%(re' " %he Car!!ea".
7%
arginal cost and marginal reBenue total cost and total reBenue marginal cost pricing and aBerage cost pricing%
)%
>erindahl >irschman &ndex - the percentage o an industryHs output produced by its our largest irms (our-irm concentration ratio+:
/here ' ' %he $ar7e% 'hare &+ +r$ " %he $ar7e%, a"0 " is the number o irms% ,%
9a
I"%er-re%a%&" re*a%e0 %& $ar7e% '%r()%(re'.
CXC A20/U2/09
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9!
L$%a%&"' &+ $ea'(re' &+ "0('%ra* )&")e"%ra%&" %
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UNIT # MO"ULE .$ MAR/ET STRUCTURE0 MAR/ET *AILURE AN" INTER)ENTION +cont,dSPECI*IC OB(ECTI)ES TOIC 2: Mar/et .ail%re 6tudents should be able to: /%
explain the concept o economic eiciencyG
%
distinguish among priBate goods public goods and merit goodsG
3%
distinguish between social costs and priBate costs and social beneits and priBate beneitsG
0%
explain the concept o marDet ailureG
"%
explain what is meant by deadweight lossG
*%
outline the causes o marDet ailure%
CONTENT /%
&nclusion o discussion o Pareto eiciency%
%
(a+
9!
E#a$-*e' &+ -ra%e &&0', -(!*) &&0' a"0 $er% &&0'. D')(''&" &+ ''(e' &+ ra*r a"0 e#)*('&".
3%
6ocial costs priBate costs social beneits priBate beneits external costs external beneits% =se o graphical representations%
0%
;iBergence o social costs and social beneits and eiciency% =se o graphical representations%
"%
;eadweight loss including Berbal and graphical representations%
*%
Causes o marDet ailure: (a+
$&"&-&*<
(b+
-(!*) &&0' a"0 $er% &&0'<
(c+
e#%er"a*%e': -&'%e a"0 "ea%e<
CXC A20/U2/09
$
UNIT # MO"ULE .$ MAR/ET STRUCTURE0 MAR/ET *AILURE AN" INTER)ENTION +cont,d-
(d+
0ere")e !e%/ee" '&)a* a"0 -ra%e )&'%' a"0 '&)a* a"0 -ra%e !e"e+%'<
(e+
$-er+e)% "+&r$a%&"<
(+
a'$$e%r) "+&r$a%&": a0er'e 'e*e)%&" a"0 $&ra* ha4ar0<
(g+
&-e" a))e'' %& re'&(r)e'<
(h+ (i+
*a)7 &+ -r&-er% rh%' 9'(a%%", '%rea$', &)ea"< "&"8e#'%e")e &+ $ar7e%' 9+&r %ra0".
SPECI*IC OB(ECTI)ES TOIC ': Intervention 6tudents should be able to: /%
eBaluate the measures used by goBernment to correct marDet ailureG
%
eBaluate the measures used by the priBate sector to correct marDet ailure%
CONTENT /%
easures used by goBernment to control marDet ailure: (a+
8
(b+
re(*a%&"< a"%8%r('% -&*)< %a#a%&"< -ra%'a%&" a"0 0ere(*a%&"< '%a%e &/"er'h-< '(!'0e'< *e'*a%&"< $ar7e% )rea%&" 9%ra0a!*e -er$%'<
-r&' a"0 )&"' &+ &er"$e"% "%ere"%&"<
CXC A20/U2/09
%
(c+
8
$er%' a"0 0e$er%'< e++e)%e"e'' &+ "%ere"%&" " Car!!ea" '&)e%e' 9e++e)% &+ '$a** '4e " re*a%&" %& -&*) $a7".
UNIT # MO"ULE .$ MAR/ET STRUCTURE0 MAR/ET *AILURE AN" INTER)ENTION +cont,d%
PriBate 6ector &nterBention:
9a
)&r-&ra%e )&0e &+ )&"0()%<
9!
)&r-&ra%e '&)a* re'-&"'!*%<
9)
&*("%ar aree$e"%'<
90
)&r-&ra%e e%h)'.
S%))ested Tea#$in) and *earnin) A#tivities
T& +a)*%a%e '%(0e"%'5 a%%a"$e"% &+ %he &!;e)%e' &+ %h' M&0(*e, %ea)her' are a0'e0 %& e"ae '%(0e"%' " %he %ea)h" a"0 *ear"" a)%%e' *'%e0 !e*&/ % /%
1or price discrimination teachers could identiy the irst second and third degree price discrimination using dierent examples rom studentsH experiences% Teachers should then illustrate by use o diagrams%
%
1or the DinDed demand curBe model teachers may use the daily newspaper or mobile phone industry as examples%
CXC A20/U2/09
&
UNIT # MO"ULE 1$
DISTRIBUTION THEORY
&ENERAL OB(ECTI)ES 9n completion o this odule students should: /% understand what accounts or the returns that accrue to the owners o the actors o productionG % appreciate the issues surrounding poBerty and the measures used to alleBiate poBertyG 3% deBelop sDills in applying microeconomic analysis to critical social issues inBolBing income ineuality%
SPECI*IC OB(ECTI)ES TOIC 1: T$e &e"and for and S%pply of .a#tors 6tudent should be able to: /%
explain the rewards o the actors o productionG
%
explain the concept o deriBed demandG
3%
outline the marginal productiBity theoryG
0%
apply the marginal productiBity theory to the demand or land capital and labourG
"%
a"a*'e the actors aecting the supply o land capital and labourG
*%
a"a*'e the actors determining rent interest and wagesG
7%
distinguish between transer earnings and economic rent%
CONTENT /%
Rent interest wages and proits%
%
;eriBed demand%
3%
(a+
The assumptions and limitations o arginal ProductiBity Theory%
(b+
arginal Physical Product arginal ReBenue Product and their relationship%
CXC A20/U2/09
'
UNIT # MO"ULE 1$ 0%
DISTRIBUTION THEORY
+cont,d-
The Balue o the arginal Product: (a+
landG
(b+
labourG
(c+
capital - using present Balue (use o graphical representation reuired+%
"%
The ixity o land the supply o loanable unds and the labour supply%
*%
The demand or and supply o actors%
7%
'umerical graphical and Berbal explanations o transer earnings and economic rent%
SPECI*IC OB(ECTI)ES TOIC 2: Wage Differentials 6tudent should be able to: /%
explain the concept o wage dierentialsG
%
analyse imperections in the labour marDetG
3%
analyse the eect o labour mobility on wagesG
0%
explain the concept o compensating wage dierentialsG
"%
explain the role o 5oBernment Trade =nions and EmployersH Associations in the pricing o labour%
CONTENT /%
;ierences in wages within industries and among industries%
%
&mperections on the demand side (or example dierences in marginal productiBity+ and on the supply side (or example geographical immobility+%
3%
The mobility and immobility o labourG geographical (migration o worDers+ occupational%
0%
Compensating (euali2ing+ dierentials%
CXC A20/U2/09
(
UNIT # MO"ULE 1$ "%
DISTRIBUTION THEORY +cont,d-
The minimum wage rateG monopsoniesG migration o worDersG collectiBe bargainingG trade union strategies the role o employersH associationsG eiciency wage%
SPECI*IC OB(ECTI)ES TOIC ': Income inequality, Poverty and Poverty Alleviation 6tudents should be able to: /%
dierentiate between si2e and unctional distribution o incomeG
%
explain the concept o income ineualityG
3%
explain the measures o income ineualityG
0%
explain the measures used to reduce income ineualityG
"%
distinguish between absolute and relatiBe poBertyG
*%
outline actors that contribute to poBertyG
7%
explain why certain categories o people are more susceptible to poBerty than othersG
)%
ea*(a%e the dierent ways used to measure poBertyG
,%
outline strategies used by 5oBernments to alleBiate poBertyG
/.%
analyse the economic costs o poBertyG
//%
a''e'' the economic beneits o goBernment interBention to alleBiate poBerty%
CONTENT /%
6i2e and unctional distribution o income%
%
>ow income is distributed%
3%
oren2 curBe measurement o income ineualityG and 5ini coeicient (interpretation only+%
0%
easures to reduce ineuality: taxes subsidies transers%
CXC A20/U2/09
!)
UNIT # MO"ULE 1$
DISTRIBUTION THEORY +cont,d-
"%
Absolute Bersus relatiBe poBerty%
*%
1actors that contribute to poBerty including: (a+ '&)a* a"0 -h')a* e"r&"$e"%< (b+ 0')r$"a%&" = e"0er, ra)e< (c+ re'%r)%&"' &" )er%a" e)&"&$) a)%%e'< (d+ "&"8&/"er'h- &+ re'&(r)e'< (e+ +a$* '4e< (+ '"*e -are"%< +e$a*e8 hea0e0 +a$*e'.
6.
Per'&"' /h& are $&'% '(')e-%!*e %& -&er%: 9a
9!
>.
-e&-*e /%h '-e)a* "ee0'< (i+
-h')a** )ha**e"e0<
(ii+
e*0er*<
(iii+
&(%h<
(iB+
'"*e -are"% +a$*e'<
(B+
"0e"&(' -e&-*e<
rea'&"' = L$%e0 a))e'' %& e$-*&$e"%, *ee* &+ %ra"", *e'*a%&", aa*a!*% &+ ")&$e %& 'hare a$&" +a$*.
?a' ('e0 %& $ea'(re -&er%: (a+
!a') "ee0'<
(b+
-&er% *"e<
CXC A20/U2/09
!
(c+ (d+
UNIT # MO"ULE 1$
@.
(b+ (c+
DISTRIBUTION THEORY +cont,d-
%ra"'+er -a$e"%'< +ree e0()a%&" a"0 hea*%h )are< h&('"<
(d+
$"$($ /ae *e'*a%&"<
(e+
e(a* e$-*&$e"% &--&r%("%e'<
(+
G&er"$e"% e$-*&$e"% )rea%&"9'-e)a* /&r7' -r&ra$$e'.
The cost o poBerty including: (a+ (b+
//%
UNDP H($a" Dee*&-$e"% I"0e# 9HDI.
6trategies to alleBiate poBerty: (a+
/..
hea0 )&("%<
("e$-*&e0 h($a" re'&(r)e'< *&/er -&%e"%a* &(%-(%<
(c+
"e++)e"% a**&)a%&" &+ G&er"$e"% e#-e"0%(re<
(d+
'&)a* a"0 e"r&"$e"%a* )&'%'.
Economic beneits including: (a+
-r&'&" &+ e0()a%&" a"0 hea*%h *ea0" %& 0ee*&-$e"% &+ h($a" )a-%a*<
(b+
$-r&e$e"% " /e**8 !e" a' $ea'(re0 ! %he UNDP 9HDI<
(c+
$&re e(%a!*e 0'%r!(%&" &+ ")&$e.
S%))ested Tea#$in) and *earnin) A#tivities
T& +a)*%a%e '%(0e"%'5 a%%a"$e"% &+ %he &!;e)%e' &+ %h' M&0(*e, %ea)her' are a0'e0 %& e"ae '%(0e"%' " %he %ea)h" a"0 *ear"" a)%%e' *'%e0 !e*&/ %
CXC A20/U2/09
!!
/%
=se Dnowledge rom topic 3 unit / Theory o 6upply to deriBe the demand curBe or actors o production%
%
Teachers may use graphical representation o the oren2 CurBe to illustrate uneual distribution o income% Teachers should also relate the oren2 CurBe to the 5&'& coeicient% Also show the eect o taxes on the oren2 CurBe and the 5&'& coeicient%
CXC A20/U2/09
!"
♦
MO"ULE #$ MO"ELS O* T%E MACROECONOM'
&ENERAL OB(ECTI)ES 9n completion o this odule students should: /%
appreciate the notion o 'ational &ncome accounting and the importance o these accounts or macroeconomic theory and policyG
%
understand the Biews o the classical Deynesian and monetarists schoolsG
3%
understand the actors that inluence the leBel o inBestment in an economy%
SPECI*IC OB(ECTI)ES TOIC 1: National In#o"e Accounting 6tudents should be able to: /%
explain the circular low o incomeG
%
explain the concept o 'ational &ncome AccountingG
3%
explain the dierent ways o deriBing 'ational &ncome AccountsG
0%
interpret 'ational &ncome statisticsG
"%
use 'ational &ncome accounts to analy2e the perormance on an economy as a wholeG
*%
deriBe real 5;P rom nominal 5;PG
7%
explain the limitations o 5;P%
CONTENT /%
Economic agents%
%
5ross ;omestic Product (5;P+5ross 'ational Product (5'P+ and other measures%
3%
Calculation o 5;P 5'P and their components (personal income disposable income+ 'et 'ational &ncome (''&+ and per capita incomeG aBoidance o double counting%
CXC A20/U2/09
!#
UNIT . MO"ULE #$ MO"ELS O* T%E MACROECONOM' +cont,d-
0%
Total measures: (a+
GDP a% $ar7e% -r)e'<
(b+
GDP a% +a)%&r )&'%'.
"%
=se o 'ational income accounts to measure economic perormance oBer time and to maDe intercountry comparisons%
*%
Calculation o real and nominal 5;P using the price delator%
7%
imits o 'ational &ncome Accounts as a measure o well-being: (a+
"&"8")*('&" &+ %he "+&r$a* 'e)%&r 9%he ("0err&("0 e)&"&$, **ea* a)%%e'G
(b+
"&"8-a$e"% +&r 0&8%8&(r'e*+ a)%%e'<
(c+
"&"8a))&("%" +&r e#%er"a*%e', e"r&"$e"%a* 0era0a%&" 9Gree" GDP<
(d+
%he +a)% %ha% % $ea'(re' )ha"e' " %he a*(e &+ &(%-(% !(% "&% )ha"e' " %he (a*% &+ *+e%
SPECI*IC OB(ECTI)ES TOIC 2: Classi#al "odels of t$e Ma#roe#ono"y 6tudents should be able to: /%
explain why within the classical model all employment is BoluntaryG
%
explain how ull employment is restored in the classical modelG
3%
explain the actors that inluence aggregate demandG
0%
explain the actors that inluence aggregate supplyG
"%
interpret the classical long run supply curBeG
*%
explain price leBel determination within the classical modelG
CXC A20/U2/09
!$
7%
use the classical aggregate demand and supply model to show changes in the price leBel and employment%
CXC A20/U2/09
!%
UNIT . MO"ULE #$ MO"ELS O* T%E MACROECONOM' +cont,dCONTENT /%
1lexibility o wages and prices%
%
The role o wage price and interest rate lexibility%
3%
The actors that inluence aggregate demand: (a+
consumer spendingG
(b+
inBestment spendingG
(c+
5oBernment spendingG
(d+
net export spending%
0%
1actors that inluence aggregate supply including changes in input prices and incomes%
"%
The assumptions o the Bertical aggregate supply curBe%
*%
The interaction o the classical aggregate demand and supply curBes%
7%
6hits in the aggregate demand and aggregate supply curBes%
SPECI*IC OB(ECTI)ES TOIC ': 0asi# eynesian Models 6tudents should be able to: /%
explain the consumption unctionG
%
explain the relationship between saBing and consumptionG
3%
calculate the simple multiplierG
0%
explain the eect o changes in inBestment on national incomeG
"%
explain the eect o goBernment spending on national incomeG
*%
describe the eect o withdrawals and inFections on national incomeG
CXC A20/U2/09
!&
UNIT . MO"ULE #$ MO"ELS O* T%E MACROECONOM' +cont,d7%
explain the relationship between net exports and national incomeG
)%
determine the euilibrium leBel o national incomeG
,%
explain inlationary and delationary gaps%
CONTENT
/%
Autonomous and induced consumption%
%
(a+
&ncome I consumption plus saBing%
(b+
marginal propensity to consume and saBe%
(c+
aBerage propensity to consume and saBe%
/ % / −mpc
3%
6imple multiplier
0%
Relationship between changes in inBestments and national income%
"%
5oBernmentHs expenditure and its eects on national income%
*%
(a+
Concepts o inFections and withdrawals in an economy%
(b+
The eect o inFections and withdrawals on national income%
(c+
6mall multipliers in the Caribbean context due to leaDages%
(a+
Relationship between net exports (x J m+ and national income%
(b+
Exports as an inFection and imports as a withdrawal%
7%
)%
;etermination o euilibrium income using: (a+
0" o line or EI?G
(b+
withdrawals and inFections approachG
(c+
the !eynesian aggregate demand and supply curBes (long run and short run+%
CXC A20/U2/09
!'
UNIT . MO"ULE #$ MO"ELS O* T%E MACROECONOM' +cont,d,%
(a+
1ull employment leBel o output%
(b+
Actual leBel o output%
(c+
Euilibrium leBel o national income could be either below at or aboBe potential leBel o output%
SPECI*IC OB(ECTI)ES TOIC (: Invest"ent 6tudents should be able to: /%
explain the concept o inBestmentG
%
dierentiate between the inBestment demand curBe and the inBestment curBeG
3%
explain the accelerator theoryG
0%
outline the actors that account or the Bolatility o inBestment%
CONTENT /%
&nBestment (induced and autonomous+%
%
(a+
arginal eiciency o capital (inBestment demand as a unction o expected rate o return+%
(b+
arginal eiciency o inBestment (non-interest rates as determinants o inBestment demand taxes costs stocD o capital goods on hand expectations+%
3%
Accelerator theory o inBestment%
0%
;eterminants o inBestment: (a+
The acceleratorG
(b+
;urabilityG
(c+
&rregularity o innoBationG
(d+
ariability o proits expectations and interest rates%
CXC A20/U2/09
!(
UNIT . MO"ULE #$ MO"ELS O* T%E MACROECONOM' +cont,dS%))ested Tea#$in) and *earnin) A#tivities
T& +a)*%a%e '%(0e"%'5 a%%a"$e"% &+ %he &!;e)%e' &+ %h' M&0(*e, %ea)her' are a0'e0 %& e"ae '%(0e"%' " %he %ea)h" a"0 *ear"" a)%%e' *'%e0 !e*&/ % /%
1or topic / teachers should pay special attention to the rules o accounting worDing rom the 5;P down to consumption and saBings% Teachers should also deal with the concepts such as marDet price and actor costs as well as real 5;P and normal 5;P% aDe use o the circular low diagram rom the closed economy to the open economy%
%
1or topic Classical odels o the acroeconomy teachers should use graphs to emphasi2e lexibility and the automatic return to euilibrium%
3%
1or topic 3 teachers could demonstrate the operation o the multiplier by using data to show the successiBe rounds o spending% Calculations and graphical representations o the multiplier are reuired%
0%
=se the 0"K line and aBerage demand and aBerage supply to show inlationary and delationary gaps%
"%
1or topic 0 &nBestment teachers may use tables to illustrate and explain the accelerator that is the necessity to increase expenditure constantly or inBestment%
CXC A20/U2/09
")
UNIT . MO"ULE .$ MACROECONOMIC PROBLEMS AN" POLICIES
&ENERAL OB(ECTI)ES 9n completion o this odule students should: /%
understand the reasons why an economy may be characterised by unemployment and how interBention may be used to improBe economic perormanceG
%
appreciate the role o the Central 8anD in the economyG
3%
understand monetary and iscal policy and their applicationsG
0%
understand the nature and burden o the national debt%
SPECI*IC OB(ECTI)ES TOIC 1: Une"ploy"ent and Inflation 6tudents should be able to: /%
explain what is meant by the labour orceG
%
explain the unemployment rateG
3%
distinguish between unemployment and underemploymentG
0%
eBaluate the costs o unemploymentG
"%
explain the causes o unemploymentG
*%
eBaluate the policies used to reduce unemploymentG
7%
explain the causes o inlationG
)%
distinguish between real and nominal BariablesG
,%
explain how inlation is measuredG
/.%
explain the causes o inlationG
//%
eBaluate the eects o inlationG
CXC A20/U2/09
"
UNIT . MO"ULE .$ MACROECONOMIC PROBLEMS AN" POLICIES +cont,d/%
eBaluate the policies used to combat inlationG
/3%
explain the relationship between the unemployment rate and inlation%
CONTENT /%
Employed and unemployed%
%
The unemployment rate%
3%
=nemployment and underemployment%
0%
The eect on output income and growth: additional inancial burden on the stateG social costs%
"%
abour immobility other marDet imperections structural changes in the economy inadeuate aggregate demand increase in labour orce participation rate seasonality interBention%
*%
1iscal policy monetary policy wage subsidies retraining programmes inBestment tax credit employment tax credit goBernment employment programmes reducing marDet imperections%
7%
&nlation: general price leBel%
)%
Real and money wages: (a+
real and nominal 5;PG
(b+
real and nominal interest rate%
,%
The 5;P delatorG the retail price indexG the producer price index% Calculations and limitations o the indices%
/.%
;emand shocDs supply shocDs increase in the money supply growth rate%
//%
The costs and beneits o inlation: the impact o redistribution o wealthG impact o business actiBity and growth impact on the balance o payments%
/%
&ncome policy monetary policy iscal policy and supply side measures%
/3%
Trade-o between inlation and the rate o unemployment: Phillips curBe J staglation%
CXC A20/U2/09
"!
UNIT . MO"ULE .$ MACROECONOMIC PROBLEMS AN" POLICIES +cont,dSPECI*IC OB(ECTI)ES TOIC 2: Monetary Theory and Policy 6tudents should be able to: /%
explain the concept o moneyG
%
outline the unctions o moneyG
3%
explain the demand or moneyG
0%
explain the supply o moneyG
"%
explain monetary policyG
*%
explain how the money supply is controlledG
7%
explain how money is created in the banDing systemG
)%
explain why residents substitute oreign or domestic currencyG
,%
explain the
/.%
outline the types o monetary policyG
//%
describe the eects o monetary policy on national incomeG
/%
eBaluate the limitations o monetary policy%
CONTENT /%
(a+
The meaning o money%
(b+
Types o money: toDen and commodity%
%
1unctions o money%
3%
(a+
iuidity Preerence Theory%
(b+
otiBes or holding money (transactions precautionary speculatiBe+%
CXC A20/U2/09
""
UNIT . MO"ULE .$ MACROECONOMIC PROBLEMS AN" POLICIES +cont,d0%
The money supply (/ +%
"%
onetary policy J expansionary and contractionary policies%
*%
(a+
The role o the central banD in creating high-powered money (monetary base+%
(b+
&nstruments o monetary control:
7%
(i+
open marDet operationsG
(ii+
discount ratesG
(iii+
inancing iscal deicitsG
(iB+
reserBe reuirementsG
(B+
moral suasionG
(Bi+
interest rates%
(a+
Excess reserBes%
(b+
Credit creation%
(c+
The money multiplier%
)%
The nature o currency substitution and hoarding%
,%
The
/.%
(a+
Tight monetary policy (inlation+%
(b+
Easy monetary policy (unemployment+%
(c+
8alance o payments%
//%
>ow monetary policy aects national income%
/%
imitations o monetary policy including the act that it is: (a+
-er$''e, "&% )&$-e**" a"0 &"* )rea%e' %he e"r&"$e"% G
CXC A20/U2/09
"#
UNIT . MO"ULE .$ MACROECONOMIC PROBLEMS AN" POLICIES +cont,d-
(b+
diicult to control the money supply o oreign-owned commercial banDsG
(c+
diicult to eliminate lags in monetary policyG
(d+
weaDened by iscal indiscipline%
SPECI*IC OB(ECTI)ES TOIC ': .is#al oli#y 6tudents should be able to: /%
explain the concept o iscal policyG
%
outline the goals o iscal policyG
3%
explain the nature o the budgetG
0%
explain the balanced budget multiplierG
"%
outline methods o inancing budget deicitsG
*%
eBaluate the limitations o iscal policyG
7%
distinguish between discretionary and non-discretionary iscal policy%
CONTENT /%
The meaning o iscal policy%
%
1iscal policy as a means o addressing: (a+
aggregate demandG
(b+
unemploymentG
(c+
inlationG
(d+
balance o payments%
CXC A20/U2/09
"$
UNIT . MO"ULE .$ MACROECONOMIC PROBLEMS AN" POLICIES +cont,d-
3%
The nature o the budget: (a+
taxation reBenue transer expenditureG
(b+
budget surplus and budget deicitG
(c+
balanced budget%
0%
Explanation o the balanced budget multiplier%
"%
ethods o inancing budget deicits including external and domestic borrowing%
*%
ags and potency o iscal policy%
7%
(a+ (b+
Expansionary and contractionary% Automatic stabili2ers%
SPECI*IC OB(ECTI)ES TOIC (: %!li# &e!t 6tudents should be able to: /%
explain the national debtG
%
explain the cause o the national debtG
3%
eBaluate the eects o the national debt on the economyG
0%
explain the burden o the national debtG
"%
eBaluate ways o reducing the debt burdenG
*%
interpret the debt serBice ratioG
7%
calculate the debt serBice ratio%
CXC A20/U2/09
"%
UNIT . MO"ULE .$ MACROECONOMIC PROBLEMS AN" POLICIES +cont,dCONTENT /%
The national debt: (a+
stocDLlowG
(b+
iscal indisciplineG
(c+
domestic and oreign debt%
%
The causes o the national debt%
3%
The eects o the national debt on the economy: (a+
output and inBestment decisionsG
(b+
exchange rate pressuresG
(c+
inlationG
(d+
crowding out and crowding in%
0%
The responsibility or debt repayment%
"%
anagement o the national debt: (a+
internal and external borrowingG
(b+
taxationG
(c+
debt reschedulingG
(d+
debt orgiBeness%
*%
&nterpretation o the debt serBice ratio%
7%
Calculation o the debt serBice ratio (principal plus interest as a percentage o export+%
CXC A20/U2/09
"&
UNIT . MO"ULE .$ MACROECONOMIC PROBLEMS AN" POLICIES +cont,dS%))ested Tea#$in) and *earnin) A#tivities
T& +a)*%a%e '%(0e"%'5 a%%a"$e"% &+ %he &!;e)%e' &+ %h' M&0(*e, %ea)her' are a0'e0 %& e"ae '%(0e"%' " %he %ea)h" a"0 *ear"" a)%%e' *'%e0 !e*&/ % /%
1or topic / =nemployment and &nlation teachers should use the Phillips CurBe to show the relationship between the unemployment rate and inlation rate%
%
1or topic (money multiplier+ show the Barious rounds in the money expansion process as done in the multiplier% =se Central 8anD Acts and Reports or data gathering%
3%
1or iscal policy there is no need or students to deriBe the balanced budget multiplier% This should only be explained%
0%
Teachers should emphasi2e the causes o the national debt and the burden it places on uture generations%
CXC A20/U2/09
"'
UNIT . MO"ULE 1$ &RO2T%0 SUSTAINABLE "E)ELOPMENT AN" &LOBAL RELATIONS
&ENERAL OB(ECTI)ES 9n completion o this odule students should: /%
understand the basic concepts o growth and deBelopmentG
%
understand the impact o imports and exports on the macroeconomyG
3%
understand the balance o payments accounts and a--re)a%e the causes and conseuences o balance o payments crisesG
0%
!e)&$e a/are &+ the beneits and costs deriBed rom current integration arrangements such as CAR&C9 1TAA and the E=G
"%
understand the role and unctions o international economic institutions%
SPECI*IC OB(ECTI)ES TOIC 1: +rot$ and ustainable &evelop"ent 6tudents should be able to: /%
distinguish between growth and deBelopmentG
%
explain the concept o sustainable deBelopmentG
3%
outline the actors that determine growthG
0%
outline the actors that contribute to sustainable deBelopmentG
"%
explain the concept o human deBelopmentG
*%
anaylse the structural characteristics o Caribbean economiesG
7%
analyse the impact o the regionHs structural characteristics on sustainable economic deBelopment%
CXC A20/U2/09
"(
UNIT . MO"ULE 1$ &RO2T%0 SUSTAINABLE "E)ELOPMENT AN" &LOBAL RELATIONS +cont,d-
CONTENT /%
;ierences between growth and deBelopment%
%
Current growth Bersus the well-being o uture generations%
3%
;ierences between exogenous (technical change+ and endogenous growth (capital accumulation human capital+%
0%
Economic social and enBironmental actors%
"%
&ndices o human deBelopment including mortality rates literacy per capita income lie expectancy%
*%
6tructural characteristics o Caribbean economies including:
7%
(a+
small si2eG
(b+
opennessG
(c+
composition o exportsG
(d+
resource baseG
(e+
poBertyG
(+
economic dependence%
&mplications or regional economies: (a+
dependence on aidG
(b+
preerential trade agreementsG
(c+
oreign direct inBestment (1;&+G
(d+
Bulnerability to natural and man-made changeG
(e+
changes in world prices%
CXC A20/U2/09
#)
UNIT . MO"ULE 1$ &RO2T%0 SUSTAINABLE "E)ELOPMENT AN" &LOBAL RELATIONS +cont,dSPECI*IC OB(ECTI)ES TOIC 2: International Trade 6tudents should be able to: /%
analyse the role o imports and exports in a small open economyG
%
outline the actors that inluence exports and importsG
3%
explain the eects o oreign exchange earnings on a small open economyG
0%
explain the theory o comparatiBe adBantageG
"%
eBaluate the arguments or protectionG
*%
eBaluate the arguments or Trade iberalisationG
7%
outline methods o trade protectionG
)%
explain the commodity terms o tradeG
,%
interpret changes in the commodity terms o tradeG
/.%
calculate the commodity terms%
CONTENT /%
The role o exports in creating domestic income and the role o imports in generating income or oreigners%
%
The actors which determine exports and imports including: (a+
international priceG
(b+
domestic productionG
(c+
domestic prices and exchange ratesG
(d+
international economic activity as it affects the tourism market in the -aribbean
CXC A20/U2/09
#
UNIT . MO"ULE 1$ &RO2T%0 SUSTAINABLE "E)ELOPMENT AN" &LOBAL RELATIONS +cont,d-
3%
(e+
shits in international demand and the emergence o substitutesG
(+
changes in &nternational &ncome%
1oreign exchange earnings rom exports: (a+
access to capital goodsG
(b+
the export multiplierG
(c+
access to consumer goodsG
(d+
increased domestic production%
0%
The theory o comparatiBe adBantage%
"%
Arguments or protection including: (a+
inant industriesG
(b+
employmentG
(c+
ood security%
*%
Arguments or Trade iberalisation including access to technology aBailability o cheaper goods and serBices% Application o the theory o comparatiBe adBantage%
7%
ethods o protection including: taris uotas and other non-tari methods%
)%
Explanation o the commodity terms o trade%
,%
&nterpretation o changes in the commodity terms o trade%
/.%
Export price index diBided by import price index multiplied by /..%
CXC A20/U2/09
#!
UNIT . MO"ULE 1$ &RO2T%0 SUSTAINABLE "E)ELOPMENT AN" &LOBAL RELATIONS +cont,d-
SPECI*IC OB(ECTI)ES TOIC ': 0alan#e of ay"ents and Ex#$an)e Rates 6tudents should be able to: /%
explain the balance o paymentsG
%
distinguish between the current account and capital accountG
3%
analy2e the causes and conseuences o balance o payments diseuilibriaG
0%
outline the policy measures or correcting balance o payments diseuilibriaG
"%
explain exchange ratesG
*%
explain exchange rates determinationG
7%
distinguish between ixed and loating exchange rate regimesG
)%
describe the eects o the exchange rate changes%
CONTENT /%
Explanation o the balance o payments%
%
Capital items and current items%
3%
The causes and conseuences o balance o payments - diseuilibria%
0%
Policy responses to balance o payments crises including: (a+
deBaluationG
(b+
expenditure switchingG
(c+
expenditure reducing measures%
"%
Explanation o exchange rates%
*%
;etermination o exchange rates%
CXC A20/U2/09
#"
UNIT . MO"ULE 1$ &RO2T%0 SUSTAINABLE "E)ELOPMENT AN" &LOBAL RELATIONS +cont,d7%
1ixed and loating exchange rate systems (ixed ree loating and managed loat+%
)%
The eects o exchange rate changes%
SPECI*IC OB(ECTI)ES TOIC (: E#ono"i# Inte)ration 6tudents should be able to: /%
explain the main orms o economic integrationG
%
eBaluate the costs and beneits o economic integrationG
3%
eBaluate the obFectiBes o Caribbean integrationG
0%
analyse the implications o international integration arrangements or Caribbean economies%
CONTENT /%
ain orms o economic integration including:
9a
+ree %ra0e area<
9!
)('%&$' ("&"<
9)
)&$$&" $ar7e%<
90
e)&"&$) ("&".
%
The costs and beneits o economic integration including trade creation and trade diBersion%
3%
The obFectiBes o CAR&C9 and the rationale or the CAR&C9 6ingle arDet and Economy (C6E+%
0%
The signiicance o integration moBements or example European =nion (E=+ and the 'orth American 1ree Trade Agreement ('A1TA+ or Caribbean Economies%
CXC A20/U2/09
##
UNIT . MO"ULE 1$ &RO2T%0 SUSTAINABLE "E)ELOPMENT AN" &LOBAL RELATIONS +cont,dSPECI*IC OB(ECTI)ES TOIC 3: International Economic !elations 6tudents should be able to: /%
explain the role and unctions o the $orld Trade 9rganisation ($T9+G
%
explain the role o international inancial institutions (&1&Hs+G
3%
explain the term multinational (transnational+ corporationG
0%
explain the nature o oreign direct inBestmentG
"%
outline the potential beneits and disadBantages o oreign direct inBestmentG
*%
explain the term globalisationG
7%
describe the actors responsible or globalisationG
)%
ea*(a%e the eects o globalisation on deBeloping countries%
CONTENT /%
The role and unctions o the $T9%
%
The role o the &1 and $orld 8anD in the &nternational 1inancial 6ystem%
3%
Explanation o multinational (transnational+ corporation%
0%
The nature o oreign direct inBestment%
"%
Potential beneits and disadBantages including: (a+
access to technology and capitalG
(b+
access to marDetsG
(c+
access to management sDillsG
(d+
repatriation o proitsG
CXC A20/U2/09
#$
UNIT . MO"ULE 1$ &RO2T%0 SUSTAINABLE "E)ELOPMENT AN" &LOBAL RELATIONS +cont,d-
(e+ transer pricingG (+ crowding out o domestic businesses% *%
The concept o globalisation%
7%
1orces driBing globalisation or example technological innoBation trade liberalisation and liberalisation o capital marDets%
)%
&mplications o globalisation or deBeloping countries with particular reerence to the greater Caribbean (greater competition access to marDets access to technology cheaper prices and greater Bariety o goods loss o preerential marDets+%
S%))ested Tea#$in) and *earnin) A#tivities
T& +a)*%a%e '%(0e"%'5 a%%a"$e"% &+ %he &!;e)%e' &+ %h' M&0(*e, %ea)her' are a0'e0 %& e"ae '%(0e"%' in examining the structure o the economies o the Caribbean and the problems o imports and exports using international partnership agreements and policies% Teacher should ensure that students could distinguish amongG (a+ (b+ (c+
Terms o TradeG 8alance o TradeG and 8alance o Payments%
CXC A20/U2/09
#%
♦
Each =nit o the syllabus will be assessed separately% The same scheme o assessment will be applied to each odule in each =nit% 5rades will be awarded independently or each =nit% Candidate assessment on each =nit will comprise two components: (i+
External Assessment undertaDen at the end o the academic year in which the =nit is taDen% This component contributes ).M to the candidateHs oBerall grade%
(ii+
&nternal Assessment undertaDen throughout the course o the =nit% This contributes .M to the candidateHs oBerall grade%
E4TERNA* ASSESSMENT
56789
aper 71 (/ hour 3. minutes+
1orty-iBe multiple-choice items iteen (/"+ on each odule%
3.M
aper 72 ( hours 3. minutes+
The paper consists o three (3+ sections comprising six (*+ uestions spread across all odules in the =nit% Each section contains two (+ essay type uestions rom which candidates are reuired to attempt one (/+%
".M
52789
INTERNA* ASSESSMENT .OR EAC UNIT aper "#
%$&nternal assessment in each =nit will comprise one proFect testing &"e &r $&re M&0(*e' % This proFect is to be assessed by the teacher using assessment criteria proBided by CNC Topics o proFects will be determined largely by the candidate in consultation with the teacher who must adhere to the guidelines set out on pages 07-0,% aper "#$& PriBate candidates are reuired to write an AlternatiBe Paper J 32% ;etails o this paper is on pages "."/% MO&ERATION O. INTERNA* ASSESSMENT An &nternal Assessment Record 6heet will be sent each year to schools submitting students or the examinations% All &nternal Assessment Record 6heets and sample o assignments must be submitted to CNC by ay 3/ o the year o the examination% A sample o assignments will be reuested by CNC or moderation purposes%
CXC A20/U2/09
#&
These samples will be re-assessed by CNC Examiners who moderate the &nternal Assessment% TeachersH marDs may be adFusted as a result o moderation% The ExaminersH comments will be sent to schools% Copies o the studentsH assignments that are not submitted must be retained by the school until three months ater publication by CNC o the examination results%
ASSESSMENT &ETAI*S E4TERNA* ASSESSMENT External Assessment by written papers ().M o Total Assessment+ aper 71 51 $o%r '7 "in%tes ; '78 of Total Assess"ent9 1<
2<
'<
(<
Co"position of aper (i+
This paper consists o orty-iBe multiple choice items iteen on each module%
(ii+
Paper ./ will assess the candidateHs mastery o sDills &(%*"e0 on page but will ocus primarily on the candidateHs ability to interpret basic economic data and to solBe uantitatiBe problems in economics%
Mar/ Allo#ation (i+
This paper is worth ,. marDs each uestion being allocated 2 marDs%
(ii+
Paper ./ contributes 3.M to the candidateHs inal grade%
=%estion Type (i+
Paper ./ comprises orty-iBe multiple choice items%
(ii+
6ome o the uestions will be based on sets o economic data which will be proBided with the releBant uestions%
Use of Cal#%lators Candidates may use silent non-programmable calculators%
CXC A20/U2/09
#'
aper 72 52 $o%rs '7 "in%tes ; 378 of Total Assess"ent9 1<
Co"position of aper
2<
(i+
This paper comprises three sections: 6ection / 6ection and 6ection 3% 1or each =nit 6ection / tests obFectiBes in odule / 6ection tests obFectiBes in odule and 6ection 3 tests obFectiBes in odule 3%
(ii+
Each section comprises two uestions or a total o six uestions% Candidates must answer three uestions one rom each section%
Mar/ Allo#ation (i+
This paper is worth /". marDs each essay uestion /** !e being marDed out o 2 %he"
/eh%e0 %& .
3%
(ii+
This paper tests candidatesH understanding o basic economic concepts and their ability to apply these concepts to eBeryday situations% &t will also test candidatesH ability to recognise the limitations o economic theory and to present their ideas in a clear logical and coherent manner%
(iii+
Paper . contributes ".M to the candidateHs inal grade%
=%estion Type (i+
Paper . comprises * essay-type uestions which reuire candidates to proBide extended responses%
(ii+
!nowledge and =nderstandingG
(b+
Application and AnalysisG
(c+
EBaluation a"0 S"%he''.
CXC A20/U2/09
#(
+UI&E*INES .OR TE CON&UCT O. INTERNA* ASSESSMENT &nternal Assessment is an integral part o student assessment in the course coBered by this syllabus% &t is intended to assist students in acuiring certain Dnowledge sDills and attitudes that are critical to the subFect% The actiBities or the &nternal Assessment are linDed to the odules and should orm part o the learning actiBities to enable the student to achieBe the obFectiBes o the syllabus% ;uring the course o study o the subFect students obtain marDs or the competence they deBelop and demonstrate in undertaDing their &nternal Assessment assignment% These marDs contribute to the inal marDs and grades that are awarded to students or their perormance in the examination% The guidelines proBided in this syllabus or selecting appropriate tasDs are intended to assist teachers and students in selecting assignments that are Balid or the purpose o &nternal Assessment% These guidelines are also intended to assist teachers in awarding marDs according to the degree o achieBement in the &nternal Assessment component o the course% &n order to ensure that the scores awarded by teachers are " line with the CNC standards the council undertaDes the moderation o a sample o the &nternal Assessment assignments marDed by each )e"%re% &nternal Assessment proBides an opportunity to indiBiduali2e a part o the curriculum to meet the needs o students% &t acilitates eedbacD to the students at Barious stages o the experience% This helps to build the sel conidence o the students as they proceed with their studies% &nternal Assessment urther acilitates the deBelopment o essential research sDills that allow the student to unction more eectiBely in his or her chosen Bocation% &nternal Assessment thereore maDes a signiicant and uniue contribution to the deBelopment o releBant sDills o the students% &t also proBides an instrument or testing them and rewarding them or their achieBements% &nternal Assessment T$e ro>e#t;aper "#$% resentation of ro>e#t &n this subFect the &nternal Assessment or each =nit will be a proFect% 5i9
T$e Ai"s of t$e ro>e#t are to: (a+ (b+ (c+ (d+ (e+
promote sel-learningG promote inBestigatiBe sDillsG enable the teacher to contribute to the eBaluationG deBelop in students improBed attitudes and sDillsG deBelop in students an ability to identiy suitable resource material on their own and to deBelop a disposition or independent research%
CXC A20/U2/09
$)
So%r#es of &ata and Infor"ation The primary and secondary sources o data listed below can be used by candidates in their research actiBities% (a+ (b+ (c+
(d+ (e+ (+ (g+ 5ii9
Mana)e"ent of t$e ro>e#t (a+
(b+ (c+ (d+ (e+
5iii9
&nternational news maga2ines such as 1ortune 8usiness $eeD 'ewsweeD and 1orbes% The business section o local newspapers% 6tatistical reports such as national income statistics balance o payments statistics surBey o liBing conditions household budgetary surBeys annual economic reports o Central 8anDs inistries o 1inance and Planning units% Annual reports o irms in the region% The economic inormation aBailable on the internet% 8udget speeches o inisters o 1inance% ReBiews o estimates o income and expenditure rom inistries o 1inance%
An early start to planning proFect worD is highly recommended% Each candidate should Dnow the reuirements o the proFect and its assessment procedures as part o the orientation to the =nit% Teachers should guide the candidates in choosing appropriate proFects that relate to the candidatesH interest and the speciic obFectiBes identiied% Candidates are reuired to prepare an outline o the proFect or approBal by the teacher% A schedule o the dates or submitting proFect worD (agreed to by teachers and candidates+ should be irmly established% The teacher should oer guidance in the data collection process and the preparation o the report%
ro>e#t Reports A candidateOs report should be presented in a sot older bearing the candidateOs number name o subFect and the date submitted% The proFect document should comprise: (a+ (b+ (c+ (d+ (e+ (+
titleG table o contentsG aims and obFectiBesG methodology employedG report (between ... - ".. words+G re+ere")e'%
The report should include the ollowing: (a+ (b+ (c+ (d+
descriptionG analysisG eBaluationG recommendations%
CXC A20/U2/09
$
6tudents and teachers must ensure that the report contains the reuired components and address the sDills identiied on Page o the syllabus% Candidates are expected to present the report using graphs charts and tables where applicable% &n addition the reports should display clarity o exposition and correctness o grammar%
5iv9
S/ills and A!ilities to !e tested The research proFect is designed to test the candidateOs ability to: (a+ (b+ (c+ (d+
5v9
demonstrate thorough Dnowledge o releBant theories concepts and modelsG apply economic concepts and principles to actual problemsG exhibit consistency o argument eectiBe use o language and other tools o communicationG demonstrate eectiBe use o reerence materials and appropriate citation%
O!>e#tives to !e tested
The -r&;e)% $a !e 0ere0 +r&$ %he &!;e)%e' a"0 )&"%e"% &+ &"e, %/& &r a** %hree $&0(*e' " %he U"%. Rear0*e'' &+ h&/ $a" $&0(*e' are )h&'e", %he %ea)her 'h&(*0 e"'(re %ha% '%(0e"%' -re'e"% a )&here"% "e'%a%&" ra%her %ha" a 0';&"%e0 -e)e &+ /&r7. The -r&;e)% 'h&(*0 !e $ar7e0 &(% &+ %he" %he $ar7' 'h&(*0 !e 00e0 e(a** a$&" %he %hree $&0(*e'. I+ %here ' a re$a"0er &+ 1 % 'h&(*0 !e a**&)a%e0 %& M&0(*e 3. I+ %here ' a re$a"0er &+ 2 $ar7', 1 'h&(*0 !e a**&)a%e0 %& M&0(*e 3 a"0 %he &%her %& M&0(*e 2. The %ea)her ' a0'e0 %& $ar7 h&*'%)a** &(% &+ a"0 %& 00e %he %&%a* $ar7' ! %hree " &r0er %& 'a%'+ %he re(re$e"%' &+ %he %hree )&*($"' ('e0 %& e"%er %he '%(0e"%5' $ar7'.
MARIN+ SCEME .OR INTERNA* ASSESSMENT noled)e?resentation?Met$odolo)y 51( "ar/s9 (&ncludes marDs or communicating inormation in a logical way using correct grammar+ The student has: /%
demonstrated a grasp o the meaning o basic economic acts concepts and principlesG
%
explained amiliar economic phenomena in terms o theories models laws and principlesG
3%
deBeloped a research design that proBides a sound and eicient basis or drawing reasonable conclusions%
CXC A20/U2/09
$!
Appli#ation?Analysis 527 "ar/s9 (&ncludes marDs or communicating inormation in a logical way using correct grammar+ The student has: /%
used used the the maFor maFor econom economic ic conce concepts pts princ principl iples es and and proc procedu edures res in una unami milia liarr situa situatio tions ns trans transorm ormed ed econ econom omic ic data data accu accura rate tely ly and and appr approp opri riat atel ely y used used comm common on char charac acte teri rist stic icss as a basi basiss or or classiicationG
%
identi identiie ied d and and recog recognis nised ed the the comp compone onent nt part partss o o an econom economic ic theo theory ry or or conce concept pt and and inte interpr rprete eted d the the relationships between these partsG
3%
ine inerr rred ed pred predic icte ted d and and draw drawn n conc conclu lusi sion onss usi using ng rele releBa Bant nt econ econom omic ic dat dataG aG
0%
made made releB releBant ant and accura accurate te calcul calculati ations ons and recogn recognise ised d the the limita limitatio tions ns o econom economic ic data dataGG
"%
sele select cted ed appr approp opri riat atee econo economi micc theor theorie iess J matc matche hed d comp compare ared d and cite cited d appro appropr pria iate te exam exampl ples es in amiliar situations%
Eval%ation Synt$esis 51@ "ar/s9 (&ncludes marDs or communicating inormation in a logical way using correct grammar+ The student has: /%
com combin bined com compone ponen nt parts arts to orm orm a new new meani eaning ngu ull whol hole made ade pred prediicti ctions ons and and sol solBed Bed problemsG
%
made made reaso reasoned ned Fudgem Fudgement entss and and recom recommen mendat dation ionss base based d on on the the Balue Balue o ideas ideas and inorm inormati ation% on%
Co""%ni#ation 5 "ar/s9 Candidates ill !e aarded "ar/s, for #o""%ni#atin) infor"ation in a lo)i#al ay %sin) #orre#t )ra""ar< The student has: /%
presen presented ted argume arguments nts in a clear clear conci concise se reason reasoned ed and and obFect obFectiBe iBe manner manner using using correc correctt gram gramma marG rG
%
used used pres presen enta tati tion on aids aids such such as gra graph phs s char charts ts and and table tabless to comm commun unic icat atee inor inorma mati tion on in a logi logica call wayG
3%
disp displa laye yed d log logic ic and and cohe cohere renc ncee in in exp expre ress ssin ing g eco econo nomi micc arg argum umen ents tsGG
0%
used used prop proper er ree reere renc ncin ing g and cit citat atio ions ns o sou sourc rcee mate materi rial als% s% =sin =sing g the the examp example le o the the stand standar ard d Chicago manual style style is recommended% recommended% (6ee page "3 or example+% -ETA(.E- C)(TE)(A A- MA) CEME
CXC A20/U2/09
$"
CRITERIA 1 noled)e?resentation?Met$odolo)y Total 1( "ar/s
T$e #andidate s$o%ld !e a!le to sele#t and present an investi)ation into into a spe#ifi# spe#ifi# e#ono" e#ono"i# i# pro!le" pro!le" %sin) %sin) approp appropria riate te e#ono" e#ono"i# i# #on# #on#ep epts, ts, prin#ip prin#iple les, s, t$eo t$eorie riess and and "et$ "et$od ods< s< .%rt .%rt$e $er, r, t$e t$e "et$odolo)y e"ployed s$o%ld !e appropriate for t$e st%dy<
A!ilities
&es#riptors
Mar/s
The candidate has: /%
selected a releBant economic problem within the scope o the syllabus 5"axi"%" 2 "ar/s9
5a9 resentation 5( "ar/s9 "ar/s9 Title o proFect is related to the obFectiBes in the syllabus and to the inBestigation and is clearly stated
%
listed at least T$9 aims o the proFect 5"axi"%" 2 "ar/s9
3%
described the me methodology and procedures employed in conducting the inBestigation 5"axi"%" B "ar/s9
presented economic data in an acceptable manner using tables graphs and charts 5"axi"%" ( "ar/s9
2
Aims o the proFect are irreleBant ambiguous or not clearly stated
7;1
The research design is limited in its scope inappropriate or the study and proBides an eicient basis or drawing reasonable conclusions
5#9 resentation of data 5( "ar/s9 ;ata presented are releBant to the aims o the proFect clear unambiguous and meaningul
(;B
7;'
(
;ata presented are releBant to the aims o the proFect but lacD clarity and eiciency
2;'
;ata presented are not uite releBant to the aims o the proFect and lacD clarity
7;1
TOTA*
CXC A20/U2/09
7;1
Aims o the proFect are releBant unambiguous and clearly stated
5!9 Met$odolo)y 5B "ar/s9 The research design is realistic in its scope in that the samples measures and data worD together to address the problem being inBestigated so as to proBide a sound and eicient basis or drawing reasonable conclusions
0%
Title o proFect is outside the scope o the syllabus or not clearly stated
2
$#
1( "ar/s
CRITERIA 2 Appli#ation?Analysis Total 27 "ar/s A!ilities The candidate has: /%
demonstrated Dnowledge and understanding o economic concepts and principles 5"axi"%" 17 "ar/s9
T$e #andidate s$o%ld !e a!le to analye t$e e#ono"i# pro!le" !ein) investi)ated !y exa"inin) its #onstit%ent parts in detail and applyin) appropriate e#ono"i# "odels and #on#epts to interpret and explain t$e pro!le"< &es#riptors Mar/s 5a9 noled)e 517 "ar/s9 excellent understanding o economic concepts principles theories and methods
%
used ec economic th theories an and concepts or interpretation and analysis 5"axi"%" 17 "ar/s9
3;@
little or no understanding o economic concepts principles theories theories and methods
7;(
CXC A20/U2/09
good understanding o economic concepts principles theories and methods but with a ew errors
5!9 Interpretation of relations$ips a"on) a"on) varia!les 517 "ar/s9 Accurate calculations recognition o the limitations o economic data and excellent use o economic theories and concepts or interpretation and analysis
6;17
6;17
6atisactory use o economic theories and concepts or interpretation and analysis with some inaccuracies
3;@
=nsatisactory use o economic theories and concepts or interpretation and analysis
7;(
TOTA*
$$
27 "ar/s
CRITERIA ' Eval%ation?Synt$esis Total 1@ Mar/s A!ilities
T$e #andidate s$o%ld !e a!le to develop str%#t%red and reasoned expositions on e#ono"i# poli#y !ased on t$e resear#$ and re#o""end sol%tions to a spe#ifi# e#ono"i# pro!le" !ased on t$e findin)s &es#riptors Mar/s
The candidate has:
/% presented a written report o /".. -... words (excluding appendices+ reuired or the assignment 5"axi"%" 17 "ar/s9
5a9 Co$eren#e, Or)aniation and pro!le" solvin) #apa!ility 517 "ar/s9 Report shows coherence arguments are logically presented and there is eBidence o the use or problem solBing strategies
% presented theoretically correct Fudgments based on the indings o the research 5"axi"%" @ "ar/s9
The candidateHs maFor accomplishments or indings (related to the proFect+ are giBen
'
The candidateHs indings are the result o sound interpretation o the eBidence deriBed rom the research
(
5!9 D%d)"ents and Re#o""endations 5@ "ar/s9 #udgments are theoretically sound plausible and based on the indings o the research
3;@
#udgments are theoretically sound but are not entirely supported by the indings o the research
2;(
#udgments are theoretically lawed and not based on the indings o the research
7;1
T3TA.
CXC A20/U2/09
'
14 mar*s
%$ CRITERIA ( Co""%ni#ation
T$e #andidate s$o%ld !e a!le to o!serve international #onventions of reportin) !y presentin) infor"ation in a lo)i#al "anner %sin) #orre#t )ra""ar
Total "ar/s A!ilities The candidate has:
&es#riptors
/%
5a9 Referen#e and Citations 5' "ar/s9 1or persons interBiewed list comprises date place and Fob title
prepared a bibliography acDnowledging all sources o inormation in alphabetical order 5"axi"%" ' "ar/s9
%
presented inormation in a logical manner using correct grammar 5"axi"%" B "ar/s9
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1or publications list comprises the names o the author publisher and year published
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1or internet sites list comprises the address o the website and names o authors and organi2ations
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&normation is presented in a Bery good and meaningul manner
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CXC A20/U2/09
Mar/s
"ar/s
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aper "#$& 51 $o%r '7 "in%tes9 1<
N%"!er of =%estions This Paper consists o THREE (e'%&"', &" ea)h M&0(*e % The uestions will be based on
%he topic identiied or the examination year% The'e are listed elow% The uestions may be diBided into '(!8parts% The Paper tests sDills similar to those listed in the &nternal Assessment (Paper 31+% 2<
=%estion Type Each uestion reuires candidates to respond either in the orm o an extended essay or a short paragraph%
'<
Mar/ Allo#ation The Paper is worth *. marDs (. marDs per uestion+ and constitutes .M towards the inal assessment%
(<
Aard of Mar/s arDs are awarded or expression organisation and content%
♦
PriBate candidates will be reuired to write Papers ./ . and 31% Paper 32 taDes the orm o a written examination taDen at the end o the academic year% The details o the examination are giBen below% UNIT 1 aper "#$& 51 $o%r '7 "in%tes9 This paper consists o three uestionsG one &" ea)h odule% Each uestion will be worth . marDs and candidates will be reuired to attempt all three uestions% The topics or the examination years ./.-./0 are listed below% &n inBestigating a topic candidates should ocus on the releBant speciic obFectiBes or each o the three odules in the =nit% Unit 1 Topi#s: /%
Topic or ./.
-
EBaluate the role o education as a means o poBerty alleBiation in your country%
%
Topic or .//
-
&nBestigate the impact o the mobile serBices operations in your country%
3%
Topic or ./
-
&nBestigate the operations o a monopoly in your country%
0%
Topic or ./3
-
Examine poBerty and the distribution o income in your country%
CXC A20/U2/09
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"%
Topic or ./0
-
Examine the leBel o earnings o dierent categories o worDers in your country% Comment on the wage dierentials that exist among them%
Unit 2 Topi#s: *%
Topic or ./.
-
Examine iscal and monetary policy used in your country% EBaluate their relatiBe eectiBeness on employment income and output%
7%
Topic or .//
-
&nBestigate the eectiBeness o the transportation system in your country and comment on the implications or the rest o the economy%
)%
Topic or ./
-
&nBestigate the impact o rising oil prices on the economy o your country%
,%
Topic or ./3
-
&nBestigate the unemployment rate existing in your country% &ndicate the strategies which your goBernment might adopt to deal with unemployment%
/.%
Topic or ./0
-
Examine the impact on the enBironment as a result o increasing leBels o housing and other deBelopmental proFects%
♦
Re-sit candidates must rewrite Papers ./ and . o the examination or the year or which they re-register% Re-sit candidates may elect not to repeat the &nternal Assessment component proBided they rewrite the examination no later than two years ollowing their irst attempt% Re-sit candidates must be entered through a school or approBed educational institution%
CXC A20/U2/09
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♦
The Assessment 5rid or each =nit showing marDs assigned to each paper and to each odule and the percentage contribution o each paper to the total scores% AERS
MO&U*E 1
MO&U*E 2
MO&U*E '
TOTA*
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3.
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External Assess"ent
Internal Assess"ent Paper 3132 T9TA ♦
CXC A20/U2/09
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♦
Anderton A%
E)&"&$)', 0th Edition Causeway Press ..*%
8aumol $% and 8linder A%
E)&"&$) Pr")-*e' a"0 P&*), 1lorida: >arcourt 8race and Company /,,)%
8egg ;% 1isher 6% and
E)&"&$)', > %h E0%&", ondon: c5raw->ill &nternational (=!+
;ornbusch R%
imited .."%
>osein R% and 5ooDool R%
Ca-e E)&"&$)' S%(0 G(0e U"% 1 Caribbean Examinations Council ..7%
ipsey R% and Chrystal !%
Pr")-*e' &+ E)&"&$)', 13 %h E0%&" 'ew ?orD: 9xord =niBersity Press &nc% ..*%
cConnell C% and 8rue 6%
E)&"&$)': Pr")-*e', Pr&!*e$' a"0 P&*)e', 'ew ?orD: c5raw->ill &nc% /,,%
6loman #%
E)&"&$)' *th Edition Prentice >all ..*%
Todaro %
E)&"&$)' +&r a Dee*&-" ?&r*0, 'ew ?orD: ongman /,)*%
REORTS AN& 0U**ETINS Central 8anD Economic Reports A""(a* E)&"&$) Re-&r%', (ar%er* E)&"&$) B(**e%"', 6tatistical ;igest rom Central 8anDs such as ECC8 C8TT 89# C88 C85% Central 6tatistical 6erBices% Ba*a")e &+ Pa$e"%', a"0 Na%&"a* I")&$e A))&("%', S(re &+
L" C&"0%&"', H&('eh&*0 B(0e%ar S(re'. Economic Planning =nits E)&"&$) Ree/', Se)%&ra* Re-&r%' +r&$ P*a""" U"%' such as P&9# and inistries o Planning across the region% =';P >uman ;eBelopment Reports% $orld 8anD Reports such as $orld ;eBelopment Reports% Periodicals such as 8usinessweeD 'ewsweeD 1ortune Economist 1orbes and the business pages o news papers such as #amaica 5leaner Trinidad 5uardian or Express 8arbados AdBocate% 8udget 6peeches Public 6ector &nBestment Programmes inistry o 1inance ReBiew o the Economy and estimates o ReBenue and expenditures or Barious territories%
CXC A20/U2/09
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