NJC H2 Economics Prelim P2 QP

This document consists of 3 printed pages and 1 blank page. NATIONAL JUNIOR COLLEGE Economics Department © NJC 2023 9570/02/Aug/23 [Turn over ECONOMICS 9570/02 Paper 2 23 August 202 3 2 hour 30 minutes No Additional Materials are required. 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. The number of marks is given in brackets [ ] at the end of each question or part question. NATIONAL JUNIOR COLLEGE SH2 Preliminary Examinations for General Certificate of Education Advanced Level Higher 2

2 © NJC 2023 9570/02/Aug/23 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 A construction firm in Singapore is facing an increase in demand for resident ial properties which has led to an increased demand for labour. However, the construction industry has an increase in the attrition rate of their foreign workers, with around one in three returning home after the borders reopened post COVID-19. This creates a problem for t he construction industry where demand for labour is also inelastic. (a) With the aid of a diagram, explain how a firm’s total expenditure on i ts workforce will have changed as a result. [10] (b) Discuss whether changes in foreign worker levy is likely to be a better way than productivity improvements to address the labour shortage experienced by a construction firm. [15] 2 GrabFood (56%), Foodpanda (35%) and Deliveroo (8%) dominate Singapore’s online food delivery industry. Commentators observed e-commerce companies Amazon and Shopee potentially have an advantage in entering the online food delivery industry given their access to large customer databases, sophisticated analytics capabilities and e-c ommerce frameworks in place. (a) Explain why Singapore's online food delivery industry might be considered to be an oligopoly and how economic theory suggests this market structure can affect the firms' pricing and output decisions. [10] (b) Discuss the potential benefits and problems that are likely to be exper ienced by new competitors considering to enter the online food delivery market where GrabFood has the largest market share.