2023 ASRJC JC1 H1 Promo Ans

© ASRJC 8843/JC1 Promotional Examination/2023 1 2023 JC1 H1 Economics Promotional Examination Suggested answers and Markers’ comments CSQ Question 1 Suggested Answers (a) With reference to Extract 1 and a diagram, explain two possible impacts of increased digitalisation on Singapore’s production possibility curve. Suggested response Impact 1 • Increased digitalisation leads to a rise in e-commerce and e-commerce firms need to hire more workers with software development skills to develop and manage their online platforms and mobile application. The creating of more jobs and hiring of more workers with technology-related skills lead to greater employment of resources since labour is also a factor of production. • Assuming that the economy is originally producing at a point within the production possibility curve (PPC) with unemployment of resources, the greater employment of labour could be shown as a movement from a point under the PPC (point C) to a point on the PPC (point D) as previously unemployed resources are now fully employed. Refer to diagram 1 below. Impact 2 • With digitalisation, such as the rise of e -commerce and online platforms for sales of goods and services, could include the use of online ordering systems and accounting systems to keep track of orders and payment. This is a form of technological enhancement which would increase the productivity in the economy. This enhances the economy’s productive capacity. • This means that the country can produce more capital and consumer goods. The PPC would shift outwards from PPC0 to PPC1 assuming that the higher quality labour is equally suited for the production of both food and machines. Refer to diagram 1 below. Diagram 1: Production possibility curve Consumer goods 0 Capital goods PPC0 PPC1 C D

© ASRJC 8843/JC1 Promotional Examination/2023 2 Marker’s Comments • General comments: Most students did well for this question, getting 3 marks and above. Q A - Some students explained the impact of increased digitalisation on either (1) an outward shift of the PPC or (2) a movement from a point within the PPC to another point nearer to the PPC or on the PPC. The question requires an answer that considers both act ual (illustrated by 2) and potential growth (illustrated by 1). C K - In general, students are better able to explain the impact of increased digitalisation on the PPC due to potential growth as compared to actual growth. The stronger responses explicitly explain how digitalisation resulted in an improvement in quality of resources or quantity of resources or improvement in technology which lead to potential growth. A R - Some students did not provide a f