2023 VJC H2 Economics_Prelim Exam_Paper 2_for print

Victoria Junior College [Turn over VICTORIA JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATION 2023 HIGHER 2 ECONOMICS 9570/02 Paper 2 29 August 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 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. This document consists of 3 printed pages and 1 blank page.

2 Victoria Junior College 9570/02/PE/23 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 Due to a severe chicken shortage in Malaysia, the Malaysian government is implementing a ban on chicken exports to other countries including Singapore from 1 June 2022. T he Malaysian government currently also caps the retail price of chicken at RM8. 90 per kg as it is a widely consumed source of protein in Malaysia. Adapted from The Straits Times, May 2022 (a) Explain the impact of Malaysia’s chicken export ban on the welfare of consum ers of fresh chicken and sellers of other meats such as beef in Singapore. [10] (b) Discuss whether the Malaysian government should continue with the price cap or use another policy to ensure that prices of essential food items remain affordable. [15 ] 2 While acquisitions and process innovation can propel firms towards mar ket dominance in the pharmaceutical industry, government intervention through measures such as price regulations is essential to ensure the benefits reach all segments of society. (a) Explain how acquisitions and process innovation enable firms to obtain ma rket dominance. [10] (b) Discuss how government intervention in the pharmaceutical industry co uld lead to improved outcomes for society and consider whether such intervention will be successful. [15]