DHS 2023 H2EC Prelims Paper 2 QP (Final)

1 Name: Centre/ Index Number: Class: DUNMAN HIGH SCHOOL Preliminary Examination Year 6 Economics (Higher 2) 9570/2 Paper 2 Essay Questions 12 September 2023 2 hours 30 minutes No Additional Materials are required. READ THESE INSTRUCTIONS FIRST 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. An answer booklet will be provided with this questi on paper. Answer all three essay questions in this booklet. 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. The number of marks is given in brackets [ ] at th e end of each question or part question. This document consists of 3 printed pages including this cover page. [Turn over

2 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1. Consumers in Thailand are snapping up crocodile mea t due to a significant increase in the price of pork which is a staple in their diet. The increase in the price of pork was due to African swine flu affecting pigs in the country and a post- pandemic economic recovery. (a) With reference to the above events, explain the lik ely changes in consumer expenditure on pork and crocodile meat in Thailand. [10] (b) Discuss the policies the Thai government can implement to address the rising price of pork . [15] 2. (a) Explain how a profit-maximising firm sets prices, a nd why under certain conditions, different prices may be charged for the same good. [10] (b) Discuss whether lowering prices is the best strategy a firm can adopt to reduce the competition that it faces . [15] 3. While e-cigarettes have seen a rise in popularity in recent years, there are concerns about its use as a gateway to smoking among young p eople. E-cigarette makers have been accused of false advertising that mislead s adolescents about the nicotine content and addictiveness of its products. (a) Explain how a rational consumer may go about making decisions whether to consume e-cigarettes, and how false advertising may affect social welfare. [10] (b) Discuss the factors that a government should consid er in its decision to intervene in the market for e-cigarettes . [15]

3 Section B One or two of your three chosen questions must be from this section. 4. UK’s central bank, the Bank of England, ha