MI 2023 PU3 H2 Econs EOY P2 Question Paper

Class Adm No Candidate Name: [Turn over 2023 Prelim Exams Pre-University 3 ECONOMICS 9757/02 Paper 2: Essays 15 Sept 2023 2 hours 15 minutes Additional Materials: Answer Booklet READ THESE INSTRUCTIONS FIRST Write your name and class on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams or graphs. Do not use staples, paper clips, highlighters, glue or correction fluid. 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. You are reminded of the need for clear presentation in your answers. 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 paper, ask the i nvigilator for a continuation booklet. The number of marks is given in brackets [ ] at the end of each question or part question. This question paper consists of 3 printed pages and 1 blank page.

2 9757/02/MYE/MI/2023 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 Global wholesale gas and electricity prices were already rising in 2021 due to higher demand as economies reopened from Covid-19 lockdowns, and as competition for supplies between regions intensified. Russia’s invasion of Ukraine led to sharp cuts in gas supplies to Europe, sending European natural gas prices to a record high, thus triggering a rise in electricity pric es, since natural gas is required to produce electricity. To deal with the high prices, UK is imposing a price cap on energy prices. Source: CNBC, 22 Aug 22 (a) Explain how the above events may have led to the surge in electricity prices. [10] (b) Discuss the policies that might be used by a government to mitigat e the significant surge in electricity prices . [15] 2 (a) Explain the relevance of different types of costs in the decision of a firm to close during an economic downturn. [10] (b) Discuss the extent to which firms faced by high levels of competition are more vulnerable to closure than firms in less competitive industries. [15] 3 The existing worldwide approaches concerning e-cigarettes, designed to deliver nicotine akin to smoking but without the detrimental tar effects of traditional cigarettes, span from complete prohibition as observed in Singapore, to relatively unrestricted market entry in Malaysia. Advocates of e -cigarettes contend that these alternatives are less harmful than conventional cigarettes and aid in smoking cessation. (a) Explain why government intervention is required to correct the over-consu