SAJC 2019-2023 JC1 H2 Economics Final Exams

1 2024 JC1 H2 Economics Final Examinations Revision Package Instructions for this Revision Package • The intent of this revision package is to provide additional practice for you in preparation for the Final Examinations. It is by no means an exhaustive coverage of the content to be tested. • The H2 Economics syllabus has changed since 2022 (it is now 9570). Differences in the content have been marked out where applicable, but take note that there are some changes to the duration of the examinations outlined in the table below: H2 9570 (2022 onwards) H2 9570 (before 2022) 1 hr 15 mins for 30 marks CSQ 1 hr 7.5 mins for 30 marks CSQ 50 mins for 25 marks EQ 45 mins for 25 marks EQ • As you are going through this package, take note of both the content and skill sets that are required of each question. • As you check through your answers against the suggested answers provided, do check for the following: Checklist ✓ Have you answered to the question requirements? ✓ Is your answer structured in a logical and coherent manner? ✓ Have you provided rigorous and developed economic analysis in it? ✓ Have you applied your answer to the context provided and made use of relevant examples to illustrate your understanding? • When attempting the high-order questions, do take time to plan your responses. Question Interpretation Identify the command word, content required as well as the context Schematic Plan Structure your answer by planning the introduction, the body paragraphs (what are the 2 key requirements of the questions?) as well as the conclusion where you are required to evaluate your points raised Evaluation Address the question by making and substantiating your stand

2 Details of the Final Examinations • Date: 7 October 2024 • Time: 1400 - 1710 • Duration: Paper 1: 1 h 15 min (followed by 15 min admin break) Paper 2: 1 h 40 min • Format: Paper 1: 1 x Case Study Question; Paper 2: Choose 2 out of 3 Essay Questions Paper 1: Case Study (30 marks) – 1 hour 15 minutes (You are to answer all questions in this section) Case Study Question 30 marks Paper 2: Essay (25 marks) – 1 hour 40 minutes (You are to answer 2 out of 3 questions in this section) Essay Question 1 25 marks Essay Question 2 25 marks Essay Question 3 25 marks Total 80 marks Topics: 1. Central Problem of Economics 2. Resource Allocation in Competitive Markets I. Demand, Supply and Price Determination II. Government Intervention: Price ceiling, Price floor, Subsidy, Indirect Tax, Quota III. Elasticities of Demand and Supply (PED, XED, YED, PES) IV. Applications of Elasticities of Demand and Supply Concepts 3. Market Failure and Government Intervention I. Sources of Market Failure (Presence of Externalities, Info Failure, Non-Provision of Public Goods) II. Equity III. Government Intervention in the Market 4. Firms and Decisions I. Costs and revenue II. Objectives of Firms III. Firms’ Decision and Strategies IV. Market Failure Arising from Market Dominance Topic that will not be covered: I. Government Intervention to deal with Market Dominance

3 Section A: Case Study Questions Question 1: Singapore’s Grocery Retail Market (Source: 2019 SAJC Final Examinations) Figure 1: Singapore Grocery Retail Market Share Source: Euromonitor, DBS Bank Extract 1: NTUC FairPrice fires first salvo in supermarket war Market leader FairPrice kicked off a price competition amongst 100 FairPrice housebrand products on 18 March. More than 50 housebrand products that are deemed “everyday essentials” saw their prices drop by as much as 30%. Analysis showed that for essential body wash items, whilst there are cost savings of at least 8.0% if consumers switched to housebrands, the greatest cost savings comes from Dairy Farm International brands (Giant, Cold Storage) and RedMart. This is because they have housebrands for the essential body wash items which are 63.9% and 42.2% cheaper, respectively. For non-fresh items (excluding body wash items), FairPrice still yields the greatest cost savings and it is slightly cheaper (2.6%) than Sheng Siong’s basket. FairPrice has the cheapest basket, offering the most attractive value in essential items – instant noodles, liquid detergent and toilet rolls. Meanwhile, for fresh items’ pricing competitiveness, Sheng Shiong took the lead. On a basket basis containing only fresh produce, it is around 0.3% to 10.8% cheaper than its peers. Given the market leader has started the ball rolling on emphasising grocery affordability, it is likely that Sheng Siong and other supermarket players will price their staple baskets at a new normal, at least until end Jun 2020. Source: Singapore Business Review, 2 April 2019 Extract 2: Innovations in the grocery retail market In 2017, Sheng Siong launched a rebate credit card as it bids to boost labour productivity and cut queue times with tap -and-go cashless payments. Sheng Siong Group chief executive Lim Hock Chee said in a statement that the card, which comes with Visa payWa ve contactless payment technology, will "serve to drive more cashless transactions and make it more convenient for

4 customers to pay for their purchases”. He hopes the latest move will spur cashless payments among the brand's heartland customer base. In 2018, NTUC FairPrice announced its partnership with ride -hailing operator Grab to offer a new membership programme. Called Score Subscription Programme, it was first announced in January when NTUC FairPrice and Grab signed a Memorandum of Understanding. For a flat annual membership fee, subscribers will be able to enjoy savings and rebates as well as access to grocery and transport services under the new subscription programme launched. Subscribers can get a five per cent rebate for incremental spends abo ve S$100 in a single receipt at NTUC FairPrice, FairPrice Finest, FairPrice Xtra, Unity stores and Warehouse Club. They can also get 50 per cent discount off all Grab rides on the third Monday of every month and attend members-only Grab events, such as private movie screenings. The programme was developed after a survey was conducted with more than 1,000 customers between the ages of 20 to 40 years. The survey showed that there is a “potential in the market for such a service”, said NTUC FairPrice and Grab in a joint media statement. Source: Various sources Extract 3: Online grocery shopping More and more Singaporeans, especially digital natives and busy PMEBs 1 prefer the convenience of shopping online instead of having to navigate the crowds and queues in a typical supermarket, not to mention having to carry the purchases back, especially the heavier ones. Free delivery is also an attractive option. While online sales still account for less than 15 per cent of overall supermarket sales, the percentage will only grow as the digital lifestyle of Singaporeans becomes more pervasive. Traditional supermarkets like Cold Storage and FairPrice are also joining the ranks of Redmart and Amazon by aggressively promoting their online stores and promising same day delivery. The million-dollar question for traditional supermarkets then is how they can make their stores more enticing for customers to visit instead of them going to shop online. Sensing the winds of change, the refurbished FairPrice Xtra at Ang Mo Kio Hub has reo pened and includes an integrated health and wellness concept that has everything you need to live, feel, look and eat well. Source: Today Online, 24 December 2018 Extract 4: Could more be done to reduce plastic packaging waste in Singapore's supermarkets? Shoppers in Singapore take 820 million plastic bags from supermarkets each year – and only a small portion are ever recycled. The majority of plastic bags end up incinerated. To be fair, the use of a plastic bag does not cause too much harm. The bigger probl