YIJC 2023 JC2 H2 Prelim 9570 P2 QP_(Final)

1 YISHUN INNOVA JUNIOR COLLEGE JC 2 PRELIMINARY EXAMINATION Higher 2 CANDIDATE NAME CG INDEX NO ECONOMICS Paper 2 Essays Additional Materials: Writing Papers Cover Pages 9570/02 12 September 2023 2 hours 30 minutes READ THESE INSTRUCTIONS FIRST Write your name, index number 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 or graphs. Do not use staples, paper clips, highlighters, glue or correction fluid/tape. Answer three questions in total, of which one must be from Section A and one from Section B. Start each question (not each section) on fresh answer booklet. At the end of the examination, fasten your work for each question separately . 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. Turn over

2 ©YIJC2023 9570/02/Prelim/23 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 The increase in energy prices have increased compet ition between sugar and sugarcane-based biofuel such as ethanol, as farmers divert resources away from sugar crop to ethanol production. Together wit h sustained economic expansion, these have led to a spike in sugar prices. In some countries such as India, where sugar is a prevalent component in peop le’s everyday diet, governments are considering sugar reduction strateg ies and price controls to ease the spike in sugar prices. Source: Adapted from OECD-FAO Agricultural Outlook 2021-2030 (a) With the aid of diagrams, explain how the increase in energy prices and economic expansion are each likely to impact consumer expenditure on sugar, in a country such as India. [10] (b) Discuss the policies a government could implement t o ease the spike in sugar prices in the domestic market. [15] 2 From the perspective of individual firms, competition in the markets requires that they adopt appropriate strategies by carefully atte nding to cost and market conditions. Firms can either embark on aggressive c ost-cutting measures or engage in product differentiation to ensure they remain profitable. (a) Explain how the features of monopolistic competitio n and oligopoly affect a firm's pricing decisions in these market structures. [10] (b) Discuss whether cost-cutting measures or product di fferentiation is the more appropriate strate