Mini practice paper: 8 questions
Mixed-difficulty questions from across the Economics syllabus. Tap "Show answer" after each to check yourself.
Q1 · Difficulty 1/3
A small bakery in Port of Spain produces bread and pastries. The owner pays $5,000 monthly for rent regardless of how many loaves are baked. This $5,000 represents which type of cost?
- Variable cost
- Fixed cost
- Marginal cost
- Average cost
Show answer & explanation
✓ Answer: B — Fixed cost
Award 1 mark for identifying that rent remains constant regardless of output level. A is incorrect — variable costs change with output (e.g., flour). C is incorrect — marginal cost is the cost of producing one additional unit. D is incorrect — average cost is total cost divided by quantity produced.
Q2 · Difficulty 1/3
Which of the following BEST describes the term 'international trade'?
- The movement of workers between countries
- The exchange of goods and services between countries
- The lending of money from one country to another
- The transfer of technology within a single country
Show answer & explanation
✓ Answer: B — The exchange of goods and services between countries
Award 1 mark for identifying that international trade involves the buying and selling of goods and services across national borders. A is incorrect — this describes labour migration. C refers to international finance/capital flows. D is incorrect because it describes domestic technology transfer, not international trade.
Q3 · Difficulty 1/3
The Central Statistical Office of Trinidad and Tobago reported that the total value of all final goods and services produced within the country in 2023 was TT$165 billion. This measure is known as:
- Gross National Product
- Gross Domestic Product
- Net National Product
- Personal Income
Show answer & explanation
✓ Answer: B — Gross Domestic Product
Award 1 mark for identifying GDP as the total value of final goods and services produced within a country's borders in a given period. A is incorrect — GNP measures output by nationals regardless of location. C is incorrect — NNP deducts depreciation from GNP. D is incorrect — Personal Income refers to income received by individuals.
Q4 · Difficulty 2/3
A vendor at Coronation Market in Kingston notices that when she raises the price of tomatoes by 10%, the quantity demanded falls by 25%. What is the price elasticity of demand for her tomatoes?
- 0.4
- 2.5
- 0.25
- 15
Show answer & explanation
✓ Answer: B — 2.5
5. Award 1 mark for correct calculation: PED = % change in quantity demanded ÷ % change in price = 25% ÷ 10% = 2.5. A is incorrect — this reverses the formula (10 ÷ 25). C is incorrect — this is 25 ÷ 100. D is incorrect — this adds the percentages rather than dividing.
Q5 · Difficulty 2/3
The Caribbean Community (CARICOM) allows free movement of goods among member states. This arrangement is an example of:
- A common market
- Bilateral trade
- Import substitution
- A trade embargo
Show answer & explanation
✓ Answer: A — A common market
Award 1 mark for identifying that CARICOM operates as a common market with free trade among members. B is incorrect — bilateral trade involves only two countries. C refers to a policy of producing goods domestically instead of importing. D is incorrect — an embargo prohibits trade.
Q6 · Difficulty 2/3
Jamaica exports bauxite to Canada and imports machinery from the United States. Which economic concept explains why Jamaica does not produce all goods domestically?
- Absolute advantage
- Comparative advantage
- Trade deficit
- Import substitution
Show answer & explanation
✓ Answer: B — Comparative advantage
Award 1 mark for recognising that countries specialise in producing goods where they have the lowest opportunity cost. A is incorrect — absolute advantage refers to producing more with the same resources, but does not fully explain trade patterns. C describes a trade imbalance, not a reason for trade. D refers to a policy of replacing imports with domestic production.
Q7 · Difficulty 2/3
The Central Bank of Trinidad and Tobago increased the reserve requirement from 9% to 12%. This monetary policy action would most likely:
- Increase the money supply in the economy
- Decrease the money supply in the economy
- Have no effect on commercial bank lending
- Encourage commercial banks to lend more money
Show answer & explanation
✓ Answer: B — Decrease the money supply in the economy
Award 1 mark for understanding that higher reserve requirements reduce funds available for lending. A is incorrect because higher reserves restrict lending capacity. C is incorrect because reserve requirements directly affect lending ability. D is incorrect because banks would have less money available to lend.
Q8 · Difficulty 1/3
A bauxite mining company in Jamaica is the sole supplier of bauxite ore to local processing plants. Which market structure BEST describes this firm's position?
- Perfect competition
- Monopolistic competition
- Oligopoly
- Monopoly
Show answer & explanation
✓ Answer: D — Monopoly
Award 1 mark for identifying that a sole supplier with no close substitutes operates as a monopoly. A is incorrect — perfect competition requires many sellers. B is incorrect — monopolistic competition has many firms selling differentiated products. C is incorrect — oligopoly requires a few dominant firms.
CXC CSEC Economics FAQ
What does the CXC CSEC Economics exam look like?
The CXC CSEC Economics exam is structured across 3 components. Paper 1 (Section A): 60 multiple-choice questions, 1 mark each. 75 minutes. Tests knowledge across the whole syllabus. Paper 2: Structured short-answer + 1 extended response question. Section A is compulsory; Section B has a choice. Approximately 2 hours 10 minutes. School-Based Assessment (SBA): Coursework component graded by the teacher, externally moderated. Worth ~20-30% of the final grade depending on subject. Total exam time: ~3.5 hours across Paper 1 and Paper 2 sittings.
Can I download a free CXC CSEC Economics past paper?
Real CXC past papers are published directly by CXC on their official website. Kramizo doesn't redistribute copyrighted past papers, but we do generate free AI-written practice papers in the exact same style — same command words, same difficulty tier, same mark conventions. Use this practice paper as warm-up, then time yourself on official past papers before exam day.
How is CXC CSEC Economics graded?
Grades: I (highest) to VI (lowest). A grade of III or above is typically required for further study. Kramizo's practice questions are tagged with difficulty 1-3 mapping roughly to the lower, middle, and top grade boundaries you'll encounter in the real exam.