CJC H2 Prelim Paper 2 QP + SAMS_For sharing

© Catholic Junior College 9570/02 JC 2 PRELIMINARY EXAMINATION/2023 CATHOLIC JUNIOR COLLEGE JC2 Preliminary Examination Higher 2 ECONOMICS 9570/02 Paper 2 12 September 2023 Additional Material: Answer Booklet 2 hours 30 mins READ THESE INSTRUCTIONS FIRST An answer booklet will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. If you need additional answer paper, ask the invigilator for a continuation booklet. Answer three questions in total, of which one must be from Section A, one from Section B and one from either Section A or Section B. Start a new question on a fresh page. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 3 printed pages and 1 blank page.

2 © Catholic Junior College 9570/02 JC 2 PRELIMINARY EXAMINATION/2023 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1. Since the pandemic hit, many gaming console companies were affected by supply chain disruptions and found themselves short on component parts . A t the same time, consumer demand for gaming consoles also surged in 2021 when vaccines became available. These developments have resulted in a shortage of computer chips used in gaming consoles and car production. Source: Various (a) Explain why there is a shortage in computer chips, and how it affects the market for gaming consoles. [10] (b) Discuss the impact the supply chain disruptions are likely to have on consumers of gaming consoles and its related products. [15] 2. Information failures exist in the healthcare and insurance markets. In the management of this issue, Singapore introduc ed co -payment in its health insurance system to encourage everyone to exercise responsibility and make prudent decisions. Effort has also been made to encourage early diagnosis of diseases to improve long-term health. Source: The Straits Times 2021 (a) Explain how the presence of two types of information failures can prevent an efficient allocation of resources. [10] (b) Assess whether government intervention will be effective in dealing with information failure in Singapore’s healthcare and health insurance markets. [15] 3. Governments must continue to play their roles as robust enforcers of competition and consumer protection to keep cost of living low and to protect consumers’ rights. Source: The Guardian 2021 (a) Explain how rational producers make their production decisions and why prices are often higher in less competitive markets. [10] (b) Discuss whether government intervention to increase competitiveness in the market will necessarily improve market outcomes for consumers and the society at large. [15]

3 © Catholic Junior College 9570/02 JC 2 PRELIMINARY EXAMINATION/2023 Section B One