RVHS 2023 J2H2 Prelim P2 Final QP

This document consists of 3 printed pages and 1 blank page. [Turn over ECONOMICS 9570/02 Paper 2 Essays 14 September 2023 2 hours 30 minutes Additional Materials: Answer Booklet READ THESE INSTRUCTIONS FIRST 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. Answer each question using separate answer booklets. You can ask for an additional booklet if you need more than one for a question. Indicate clearly the question number . 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 Answer 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. 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 9570/02 Section A One or two of your three chosen questions must be from this section. 1 Malaysia is introducing an export ban on chicken, in addition to the existing price ceiling to keep chicken prices low domestically. Singapore imports live chickens from only Malaysia and this makes up 34% of its overall chicken supply - the most widely consumed meat here. Concurrently, there are also campaigns e ncouraging Singaporeans to consume vegan meat for health and ethical reasons. (a) Explain how the above events will lead to a sharp i ncrease in the price of chicken in Singapore. [10] (b) Discuss whether the imposition of a price ceiling or an export ban is more effective in bringing about a fall in the price of chicken in Malaysia . [15] 2 Technology has disrupted many industries across dif ferent market structures, affecting revenue, costs and profits of firms. Faced with co nstraints of a tight labour market and an increasingly competitive business environment, firms have turned to using technology to improve their outcomes. (a) Explain how technology has affected market structur es and resulted in differing abilities of firms to earn supernormal profit. [10] (b) Discuss whether the use of technology is better than the use of a pricing strategy to improve the outcomes for firms. [15] 3 With more people facing chronic health issues amids t an ageing population, Singapore will embark on its new preventive healthcare strategy – Healthier SG, from July 2023. By encouraging people to enrol with a general practitioner who will help them manage their health, such a strategy focuses on keeping people h ealthy as long as possible, while ensuring early detection of health problems. (a) Explain two different reasons for the market failure associated with the consumption of preventive healthcare. [10] (b) Discuss how government intervention in Singapore’s healthcare market can address market failure and consider how likely such interve ntion is successful amidst an ageing population. [15]

3 © RVHS 2023 9570/02 Section B One or two of your three chosen questions must be from this section. 4 Singapore’s inflation is set to rise following a mix of external and domestic factors – strong recovery in global growth with the arrival of Covid -19 vaccines, geopolitical tensions driving up food and energy prices, as well as a tig ht labour market. In response, the Monetary Authority of Singapore has allowed the Sin gdollar to appreciate, while encouraging firms to leverage technology to keep costs low. (a) Explain a possible demand side reason and a possibl e supply side reason for the rise in the rate of inflation in Singapore. [10] (b) Discuss whether the policies aimed at addressing i nflation might cause difficulties for Singapore economy . [15] 5 Singapore's overall unemployment rate eased in tand em with the gradual recovery of global economic activity. The most significant empl oyment growth occurred in the information and communications sector as a result o f strong demand for IT and digital solutions. This trend was further bolstered by the government's initiatives promoting digital transformation and the implementation of the SGUnited Jobs and Skills package, which facilitated job opportunities and skills development for residents. (a) Explain the internal and external factors that have contributed to the change in Singapore’s unemployment rate . [10] (b) Discuss how far the size and openness of Singapore’s economy would influence her choice of policies in reducing unemployment. [15] 6 Despite former US president Donald Trump’s ‘America First’ agenda of protecting industrial jobs by increasing tariffs on foreign goods, US remained as the country with the world’s largest current account deficit which rose by a third to US$635 billion in 2020 or 3.1% of the country’s economic output. Source: Reuters, 22 Jan 2021 (a) Explain two reasons why governments will be concern ed with current account deficits. [10] (b) Discuss whether the use of protectionist policies c an ever be justified in an increasingly globalised world . [15]

4 © RVHS 2023 9570/02 BLANK PAGE