TMJC_2023_H2 Economics_P2_QP

_________________________________________________________________________ H2 ECONOMICS 9570/02 Paper 2 18 September 2023 2 hours 30 minutes Additional materials Two Answer Booklets _________________________________________________________________________ READ THESE INSTRUCTIONS FIRST Write your name and Civics Group on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use an HB pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, 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. The number of marks is given in brackets [ ] at the end of each question or part question. Begin each Section on a new answer booklet. Hand in Section A and Section B separately. _________________________________________________________________________________ This document consists of 3 printed pages and 1 blank page. TAMPINES MERIDIAN JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATION

2 Tampines Meridian Junior College 2023 JC2 Prelim H2 Economics 9570 Paper 2 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 The sharp increase in price of food in land-scarce Singapore could be attributed to the recent restrictions on export of food supply imposed by other countries and growing affluence. The Singapore government has imp lemented the ‘30 by 30’ plan which aims to produce 30 per cent of our nutritional needs by 2030. (a) Explain the reasons for the sharp increase in price of food in Singapore. [10] (b) Discuss whether the ‘30 by 30’ plan is likely to be the most effective way the Singapore government can address the sharp increase in price of food. [15] 2 Greater competition in Singapore's food delivery industry saw Foodpanda using high-speed drones to deliver hot meals from Sentosa to St John’s Island to boost profits. Other profit-increasing strategies included price discrimination. (a) Explain how the degree of barriers to entry is likely to affect a firm’s pricing and output decisions in the short run and long run. [10] (b) Discuss whether innovation or price discrimination is the more appropriate strategy for a food delivery firm to increase its p rofits in view of greater competition. [15] 3 The healthcare market may not achieve an efficient and equitable allocation of resources whe n there is imperfect information. (a) Explain how imperfect information leads to allocati ve inefficiency in the market for healthcare screening and health insurance respectiv