2024 TMJC H2 Econs Prelims P2 QP

_________________________________________________________________________ H2 ECONOMICS 9570/02 Paper 2 13 September 2024 2 hours 30 minutes Additional materials Two Answer Booklets _________________________________________________________________________ READ THESE INSTRUCTIONS FIRST Write your name 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, graphs or rough working. Do not use staples, paper clips, glue or correction fluid. 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. Begin each Section on a new answer booklet. Submit Section A and Section B separately. _________________________________________________________________________________ This document consists of 3 printed pages and 1 blank page. TAMPINES MERIDIAN JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATION

2 Tampines Meridian Junior College 2024 JC2 Prelim H2 Economics 9570 Paper 2 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 In situations involving public goods or where consumers lack information, reliance on price signals alone will not achieve allocative efficiency. Yet government intervention is not without its problems. For instance, the use of e -cigarettes is still rising in Singapore despite its government having already imposed a ban. (a) Explain why public goods and consumers lacking information can each result in market failure. [10] (b) Discuss whether government intervention to correct such market failures should be minimised since they can be costly and ineffective. [15] 2 The Electric Vehicle (EV) Early Adoption Incentive scheme which has been extended till end of 2025 enables owners who register new fully electric cars to enjoy lower additional registration fees, the main tax imposed upon registering a vehicle in Singapore. Growing environmental concerns among consumers have also raised demand for EVs. (a) Explain how the price mechanism can allocate scarce resources efficiently in a free market for electric vehicles when there is a rise in demand. [10] (b) Using relevant elasticities of demand, discuss how the combined effects of EV Early Adoption Incentive Scheme and growing environmental concerns might change consumers’ expenditure on electric vehicles and petrol vehicles respectively. [15]