2023 VJC H2 Economics_Prelim Exam_Paper 1_for print

Victoria Junior College [Turn over VICTORIA JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATION 2023 HIGHER 2 ECONOMICS 9570/01 Paper 1 12 September 2023 2 hour 30 minutes No Additional Materials are required. READ THESE INSTRUCTIONS FIRST An answer booklet will be provided with this questi on 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 all questions. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 9 printed pages and 1 blank page.

2 Victoria Junior College 9570/01/PE/23 Answer all questions. Question 1: The evolving demand for commodities Figure 1: Global lithium prices*, mid-2017-2020 *Lithium is traded as lithium carbonate. Price is in Chinese Yuan per tonne. Source: Tradingeconomics.com Extract 1: Sodium-ion battery a new alternative to lithium-ion battery In July 2021, China's Contemporary Amperex Technology Co. Limited, or CATL for short, became the first major automotive battery maker to unveil a sodium-ion battery, saying it planned to set up a supply chain for the new technology. As electric vehicles (EVs) become incr easingly popular, demand for key lithium-ion battery ingredients, particularly cobalt, has spiked. This has spurred car producers and battery makers to seek alternatives to the current lithium-ion batteries. The sodium-ion batteries do not contain lithium, cobalt, or nickel. CATL did not disclose cost details of the new batteries. The energy density, or amount of energy stored per unit v olume, of its new sodium-ion batteries is still lower than that of lithium-ion batteri es, Huang Qisen, deputy head of CATL's research centre told an online briefing. But he added that they perform well in cold-weather and fast-charging scenarios. Source: Reuters, July 29 2021 Jul

3 Victoria Junior College 9570/01/PE/23 Extract 2: Indonesia bans mineral exports to move up value chain Indonesia is taking control of its mineral resources, incentivising inves tment in processing facilities and shifting the international balance of economic power. From Asia to Europe to the United States, multinationals have made moves into Indonesia to secure access to its vas t reserves of nickel, as the country's export restrictions fuel competition for an essential metal for lithium-ion EV batteries. In August 2019, the Indonesian government announced that exports of nickel ore would be banned starting J