2023 HCI Prelim Paper 1 QP

1 © Hwa Chong Institution 2023 9570/01/A/C2 Prelim 2023 HWA CHONG INSTITUTION C2 Preliminary Examinations Higher 2 CANDIDATE NAME CT GROUP 22 ECONOMICS Paper 1 Case Study Questions Additional Materials: Answer Booklet 9570/01 25 August 2023 2 hours 30 minutes READ THESE INSTRUCTIONS FIRST Read all instructions printed on the cover page of the 12-page answer booklet carefully. Write all your particulars clearly on the cover page of the 12-page answer booklet. Write in dark blue or black pen on both sides of the paper. You may use a soft HB pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid and tape. Answer ALL questions. Write all your answers in the 12-page booklet and subsequent 4-page booklets (if required). Do all your rough work in pen using the answer booklet and cross it through without making it illegible. Do not tear out any part of this booklet. Begin case study question 1 and question 2 on a new page within the answer booklet. All work must be handed in. If you have used any additional 4-page booklets, please insert them inside the 12–page answer booklet. The number of marks is given in brackets [ ] at the end of each question or part question. You may use a calculator. You are advised to spend several minutes reading through the questions before you begin writing your answers. You are reminded for the need for good English and clear presentation in your answers. This document consists of 8 printed pages. [Turn over

2 © Hwa Chong Institution 2023 9570/01/A/C2 Prelim 2023 Answer all questions Question 1: Coronavirus (COVID-19) – Immediate impact and beyond Extract 1: Challenges faced by Boeing and Airbus The COVID-19 pandemic has created disruptions in the air travel and aircraft manufacturing industry amidst widespread travel restrictions and travellers’ fear of infection. Even as sale of tickets plunge, aircraft manufacturers have had to readjust their production. For example, Airbus has reduced output from 60 to 40 a month. Similarly, Boeing has announced cuts to production. China, desperate to become a power in commercial aerospace, may see the disruption as a way to speed up entry into the global market, says Rober t Spingarn of Credit Suisse, a bank. He speculates that Brazil’s Embraer might merge with China’s COMAC to build a plane capable of competing against Airbus and Boeing. The Brazilians could supply the industrial knowhow and the Chinese the industrial might. The nature of the aircraft manufacturing industry is that it involves significant costs. For instance, an aircraft manufacturing firm would need to incur costs to build factories, assembly lines, hangars and testing facilities. It also has to in