2023 HCI Prelim Paper 2 QP Final

© Hwa Chong Institution 2023 9570/02/S/C2 Prelim 2023 HWA CHONG INSTITUTION JC2 Preliminary Examinations Higher 2 CANDIDATE NAME CT GROUP 22 CENTRE NUMBER INDEX NUMBER ECONOMICS Paper 2 ESSAY Additional Materials: Answer Booklet(s) 9570/02 12 September 2023 2 hours 30 minutes READ THESE INSTRUCTIONS FIRST Write your name, CT group, Centre and Index numbers clearly on every sheet of answer paper that you hand in. Write in dark blue or black pen on both sides of the answer paper. You may use a soft HB pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid and tape. 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. Write all your answers in the 12-page booklet and subsequent 4-page booklets (where required). Start each question on a new page in the answer booklet. Indicate the questions you attempted on the cover page of the 12-page booklet. Do not tear out any part of this booklet. All work must be handed in. If you have used any ad ditional 4-page booklets, please insert them inside the 12–page answer booklet. The number of marks is given in brackets [ ] at the end of each question or part question. You are advised to spend several minutes reading th rough the questions before you begin writing your answers. You are reminded of the need for good English and clear presentation in your answers. This document consists of 3 printed pages and 1 blank page. [Turn over

2 © Hwa Chong Institution 2023 9570/02/S/C2 Prelim 2023 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 Post pandemic Singapore experience a shortage of skilled labour as formerly closed borders were slow to reopen and there was a surge in the demand for professional services. These two factors have contributed to a shortage and rapid rise in wage rates. Singapore typically strives to develop its domestic skilled labour whilst relying on the inflow of foreign skilled labour to make up for such shortfall. Singapore has recently launched a new employment pass to attract the top-tier foreign skilled labour, giving firms in Singapore access to skilled labour. (a) Use supply and demand analysis to explain why the above factors may have led to a shortage in skilled labour and a rapid rise in their wage rate. [10] (b) In the light of the stiff global competition for skilled labour, discuss whether the new employment pass is likely to be the most effective way the Singapore government c an address the shortage of skilled labour. [15] 2 Workers are not aware of the benefits of skills upgrading associated wit h lifelong learning and the importance of preparing for new job requirements as businesses transform in the digital economy. Therefore, governments subsidise training as upskilling and reskilling not only be nefit workers themselves but the wider community. (a) Explain two different reasons for the market failure in skills upgrading courses as sociated with lifelong learning. [10] (b) Discuss whether government subsidy is the best policy to ensure sk ills upgrading courses are allocated efficiently. [15] 3 The grocery retail industry in Singapore is dominated by three big supermarkets - NTUC Fairprice, Dairy Farm International Holdings (operating Cold Storage, Giant and Marketplac e) and Sheng Siong. With the development of e-commerce, supermarkets in Singapore facing competition from online grocery retailers have struggled with declining revenues, sometimes to the point of closure. (a) Explain why some firms make subnormal profits when faced with a higher l evel of competition but remain in the market, while others shut down. [10] (b) Discuss the likely effects of an increase in the level of competition in Singapore’s grocery retail industry on consumers. [15]

3 © Hwa Chong Institution 2023 9570/02/S/C2 Prelim 2023 Section B One or two of your three chosen questions must be from this section. 4 Technological advancement has resulted in the adoption of labour-saving technology and capi tal intensive production techniques and this has affected the income gaps of different g roups of workers and between urban and rural communities. (a) Explain how labour immobility may cause unemployment and income inequality to rise. [10] (b) Discuss whether improving labour mobility alone is the best policy to achieve inclusive growth. [15] 5 (a) Explain why a small and open economy may allow its currency to appreciate and how it may lead to an unintended consequence on its balance of trade. [10] (b) Discuss to what extent conflict between macroeconomic objectives is the main reason why governments pursue a mix of macroeconomic policies to achieve these objectives. [15] 6 (a) Explain the benefits and costs of globalisation to consumers and workers. [10] (b) Discuss the extent to which policies aimed to attract foreign direct inv estments (FDIs) in Singapore would ensure that the benefits of globalisation to consumers can be obtained while minimising the costs of globalisation to workers. [15] [Turn over

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