RVHS 2023 J2H2 Prelim P1 Final QP

1 This document consists of 8 printed pages. [Turn over] ECONOMICS 9570/01 Paper 1 Case Study 18 September 2023 2 hours 30 minutes Additional Materials: Answer Booklet READ THESE INSTRUCTIONS FIRST Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. Answer Question 1 and Question 2 on separate booklets. You can ask for an additional booklet if you need more than one for a question. For each Answer Booklet: Write your name, Centre number and index number on the first page of all Answer Booklets that you hand in. Write clearly and use capital letters. For each booklet, use both sides of the paper. Write in dark blue or black pen. HB pencil may be used for graphs and diagrams only. DO NOT WRITE ON ANY BARCODES. Write the number of the question you are responding to in the first margin. Question Part 1 ai 1 aii If the question you are responding to also contains parts, for example 1a, write the question part in the second margin. Do not tear out any part of the Answer Booklet. All work must be handed in. If you have used any additional booklet, please insert it inside the first Answer Booklet. RIVER VALLEY HIGH SCHOOL JC 2 Preliminary Examination in preparation for General Certificate of Education Advanced Level Higher 2

2 © RVHS 2023 9570/01 Answer all questions. Question 1: Driving the future: Electric vehicles Extract 1: Electric vehicles are ‘green’ but it is complicated Experts broadly agree that electric vehicles (EVs) create a lower carbon footprint over the course of their lifetime than cars that use traditional, internal combustion engines (ICE). However, there are questions about how energy-intensive it is to build an EV or an EV battery, versus building a comparable ICE vehicle. The batte ries in EVs charge on power coming straight off the electric grid, which is often powe red by fossil fuels such as coal or oil. Separately, a study from Massachusetts Institute of Technology found that the battery and fuel production for an EV generates higher emissions tha n the manufacturing of an ICE vehicle. But these higher environmental costs are offset by EVs’ superior energy efficiency over time. In short, the total emissions per mile for EVs are lower than comparable ICE vehicles. EVs rely on rechargeable lithium-ion batteries to run. The process of making these batteries which include using mining raw materials like cobalt and lithium, to production in gigafactories and transportation, can be energy-intensive. It is also one of the biggest sources of carbon emissions from EVs today. Gigafactories are facilit ies that produce EV batteries on a large scale. China currently dominates battery production, with 93 gigafactories producing lithium- ion battery cells versus only 4 in the US, the Wash ington Post reported this year. Batteries made in older gigafactories in China are usually powered by fossil fuels, because that was the trend five to ten years ago. So, EVs that are built with batteries from existing factories are going to have large carbon footprints. Experts said that can change over time as raw materials needed for battery production are in limited supply, leaving firms with no choice but to recycle. Experts also agree that a transition from ICE vehicles to EVs is not a cure-all solution for the global fight against climate change. It needs to go hand-in-hand with societal change that promotes greater use of public transportation and a lternative modes of travel, including bicycles and walking. Reducing the use of private v ehicles requires plenty of funding and policy planning. Source: CNBC, 26 July 2021 Extract 2: Adoption of EVs in Singapore About $30 million in rebates were distributed out l ast year to encourage car and taxi owners to switch to EVs, said Transport Minister S. Iswaran. The rebate was introduced to lower the upfront cost of buying an EV, which cost about 78% more than an equivalent ICE car in 2020. Mr Iswaran said: "The Land Transport Authority will continue to monitor EV adoption trends and accelerate the deployment of our EV charging network where necessary to meet our 2030 target of 60,000 charging points islandwide." This target, which comprises 40,000 chargers at public car parks and 20,000 chargers at private premises, has been assessed to be sufficient to meet expected EV charging demand based on the pr ojected EV population in 2030, he added. At the same time, as Singapore transitions to EVs, automotive workers here will need to pick up new skills. For example, the Singapore M otor Workshop Association Training Academy will train at least 1,000 automotive workshop technicians over the next three years to maintain EVs. Source: Straits Times, 10 January 2022

3 © RVHS 2023 9570/01 urn over Extract 3: China dominates the world of EVs Before most people could realize the extent of what was happening, China became a world leader in making and buying EVs. In just the past two years, the number of EVs sold annually in the country grew from 1.3 million to a whopping 6.8 million, making 2022 the eighth consecutive year in which China was the world’s largest market for EVs. For comparison, the US only sold about 800,000 EVs in 2022. This dominance in the EV sector has not only given China’s auto industry sustained growth during the pandemic but boosted China in its quest to become one of the world’s leaders in climate policy. Starting in 2009, the country began handing out fin ancial subsidies to EV companies for producing buses, taxis, or cars for individual cons umers, which resulted in a slew of homegrown EV brands emerging. While the subsidy policy officially ended at the end of last year, it already had its intended effect. With more than 6 million EVs sold in 2022, China accounted for over half of global EV sales. The most important part of an EV is the battery cel ls, which can make up about 40% of the cost of a vehicle. And the most important factor in making an EV that is commercially viable is a battery that’s powerful and reliable, yet still a ffordable. Chinese companies really pushed battery technology forward by championing lithium i ron phosphate batteries, which is safer and cheaper. China also has one key advantage in ba ttery manufacturing as it controls a lot of the necessary materials. In the current geopolitical environment, the most growth potential for Chinese EV companies will likely come from Asia. That region will continue to need more EVs for its energy transition even after China’s domestic market becomes saturated. This is why the benefits from China’s focus on producing EVs are twofold: it both reduces China’s need for car imports from Western countries and creates another long-lasting export industry. In 2022, China exported 679,000 EVs, a 120% increase from the year before. There’s little reason to doubt the numbers will only grow from here. Source: MIT Technology Review, 21 February 2023 Extract 4: Tesla forges separate pricing strategies in China and the US Tesla showed signs of divergent strategies in the w orld's two biggest automotive markets, raising prices to boost profit margins in the US while keeping prices steady in China and hoping to grow sales there. "Tesla is looking to be as competitive as it can be in China. Lower prices will be a part of that aggressive market positioning," Roth Capital Partne rs analyst Craig Irwin said. "There is a very large difference in battery prices in the US a nd China, as well as local vehicle manufacturing costs." Since Tesla started production at a Shanghai fac