TMJC 2024 JC2 H2 MYE Suggested Answers & Markers Report

JC2 H2 Economics 9570 2024 MYE Suggested Answers & Markers Report 1 TMJC Economics Unit 2024 JC2 H2 Economics 9570 Suggested Answers & Markers’ Report for Mid-Year Exam INSTRUCTIONS As you review your script using the suggested answers, analyse how you can improve on your answer. Consult your tutors to clarify your doubts. Section Pages 1. Section A: Case Study Question 1 2 – 23 2. My Reflection/Learning Points from Section A 24 3. Section B: Essay Question 2 25 - 36 4. Section B: Essay Question 3 37 - 49 5. My Reflection/Learning Points from Section B 50 6. Section C: Essay Question 4 51 – 61 7. Section C: Essay Question 5 62 – 73 8. My Reflection/Learning Points from Section C 74

JC2 H2 Economics 9570 2024 MYE Suggested Answers & Markers Report 2 Case Study Question 1: Economic issues on China and Singapore (a) Using a diagram, explain the impact of a possible steel production quota in China’s steel market. [3] A quota is the maximum legally permissible quantity that can be exchanged in the market where a government caps the amount of goods that can be transacted in the market below equilibrium quantity. The Chinese government is placing limits on steel production. The steel production is fixed at 0Q units. [1m- Fully labelled diagram] With the amount of steel fixed at Q, the price is determined by demand at P1. 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! (+) Many who knew what a quota was, could give succinct answers of appropriate length for a 3m question. (+) Many made reference to the diagram they had drawn. 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! (+)/ (-) Those who knew what a quota was could draw a well-labelled diagram and address the change in quantity. However, some drew inaccurate diagrams

JC2 H2 Economics 9570 2024 MYE Suggested Answers & Markers Report 3 with incorrect labelling of the curves and axis. A handful also confused quotas with price controls. (-) Many students did not include the impact on price of steel as a result of quota even though question asked for “impact on the market”. (-) Many who explained quota only had a brief idea that it was about controlling quantity. However, they were unable to provide a clear explanation as to why price would rise while quantity remained the same. (b) With reference to Extract 1, explain the rationale behind the government’s action to curb steel production in China. [4] The government curbs steel production in China due to the market failure due to steel production caused by negative externalities. • Private output (MPB=MPC): The priv