RVHS 2023 J2H2 Prelim P1_CSQ SAMS

© RVHS 2023 9570/01 RIVER VALLEY HIGH SCHOOL 2023 JC 2 Preliminary Examination Q1 Suggested Answers a) Compare the changes in sales share of battery EV s and ICE vehicles between 2018 and 2030. [2] Sales share of battery EVs increases while that of ICE vehicles decreases. The rate of change in sales share of battery EVs is lower/slower than that of ICE vehicles. OR The decrease in sales share of ICE vehicles is larger than the increase in sales share of battery EVs. b) With reference to Extract 2, explain why EV charging points should not be classified as a public good. [2]  EVs charging points are rivalrous in consumption, as evident in Extract 2 where the Singapore government is planning to build more EV charging points to “meet expected EV charging demand”, suggesting that a driver’s use of a particular charging point means that other EV drivers will not be able to use that particular charging point. The following answers are NOT acceptable as there is no evidence from Extract 2.  EVs charging points are excludable in consumption, for instance, users are required to make payment to charge their cars, similar to how petrol pumps work.  EVs charging points are rejectable, where petrol-car drivers and non-drivers have the option to not use the charging points even though they are provided at public carparks or private residences. c) Explain how focusing on EVs by the Chinese government is likely to have benefited the China economy. [4] As mentioned in Extract 3, China is producing more EVs and batteries to power the EVs. If more factories were built, coupled with increased R &D to push battery technology forward, this has resulted in an increase in investment. At the same time, consumption will have increased as consumers buy more EVs. The increase in consumption and investment will lead to an increase in aggregate demand and as such, mul tiple increase in national income, bringing about actual economic growth. The increase in quality and quantity of factors of production will also lead to an increase in productive capacity, leading to potential economic growth. As national income increases, more output a re being produced (i.e. EVs and batteries), this will generate more jobs especially in the auto manufacturing sector, thus increasing employment. Extract 3 also pointed out that focusing on EVs has allowed China to reduce importing vehicles from Western countries and it also helps to create another long-lasting export industry. This will help to improve China’s balance of trade / balance of payment position as exports increase while imports fall, ceteris paribus. With a rise in exports, it also helps to generate more jobs in the export-related sectors, thus increasing employment.  At least TWO macroeconomic objectives (EG, employm ent or BOP) to be touched on. d) Extract 4 explains that Tesla forges separate pricing strategies in China and th