TMJC_2024_H2 Econs CSQ2_Answers

JC2 H2 Economics 9570 2024 Prelim Suggested Answers & Markers Report 18 Tampines Meridian Junior College 2024 JC2 Prelim H2 Economics 9570 Paper 1 Question 2: Is ASEAN winning the globalisation game? Suggested Answers (a) ‘Higher levels of education will generate greater FDI inflows.’ (Extract 1) (i) Explain how information in Figure 2 and Table 1 supports the above statement. [2] (ii) Explain why higher levels of education will generate greater FDI inflows . [2] (i) Reference from data given: Figure 2 shows that SG has the highest FDI inflows, followed by Vietnam then Thailand. Table 1 shows that adult literacy rates was highest for SG and lowest for Thailand. Thus, it can be inferred that SG with the highest education level experiences the highest FDI inflows while Thailand with the lowest education level experiences lowest FDI inflows . As such, the information in Figure 2 and Table 1 supports above statement. Markers’ Report Skills Strengths (+): What are the required skills that were well - demonstrated? Areas for improvement ( -): What are the skills that were lacking/ not well-demonstrated? Aha moment! (+) Excellent answers. Almost all students got full marks for this. (ii) Higher levels of education can lead to a more skilled workforce with higher labour productivity which can lower unit costs of production and increase profitability of investments. As a result, foreign investors are more likely to be willing to invest. Content Strengths (+): What are some concepts that were well - explained with clear linkages made? Areas for improvement (-): What are some concept gaps / conceptual errors? Aha moment! (-) Students who did not score was due to their inability to link higher education levels to improvement in labour productivity or their inability to point to lower costs or higher profits for incoming foreign firms (b) Using a production possibility curve diagram, explain how FDI inflows can affect a country’s current employment and future output. [5]

JC2 H2 Economics 9570 2024 Prelim Suggested Answers & Markers Report 19 Tampines Meridian Junior College 2024 JC2 Prelim H2 Economics 9570 Paper 1 Diagram showing movement of point nearer to PPC & outward shift of PPC (1m) Current employment: Foreign Direct Investment (FDI) inflows can lead to greater creation of capital goods, which increases the derived demand for labo ur and other key factors of production. Assuming the economy is operating inside the Production Possibility Curve PPC1 at point A whereby t