TMJC 2024 J2 H2 EC MYE

_________________________________________________________________________ H2 ECONOMICS 9570 25 June 2024 3 hours Additional materials Answer Booklets _________________________________________________________________________ READ THESE INSTRUCTIONS FIRST Begin each section on a new answer booklet. Section A, B and C are to be submitted separately. Section A: Case Study Answer the compulsory case study question. Begin this section on a 12-page answer booklet. Section B : Essay Question Attempt one out of two essay questions. Begin this section on a 4-page answer booklet. Section C : Essay Question Attempt one out of two essay questions. Begin this section on a new 4-page answer booklet. The number of marks is given in brackets [ ] at the end of each question or part question. _________________________________________________________________________________ This document consists of 7 printed pages and 1 blank page. TAMPINES MERIDIAN JUNIOR COLLEGE JC2 MID-YEAR EXAMINATION

2 Tampines Meridian Junior College 2024 JC2 Mid-Year Examination H2 Economics Section A Answer all questions in this section. Question 1: Economic issues in China and Singapore Extract 1: China wants to curb steel production In the first half of 2021, Chinese steel mills have churned out nearly 12 per cent more crude steel compared to the same period in 2020, according to Wood Mackenzie, a global provider of data and analytics for the energy transition. The steel sector is one of the biggest polluters in China, producing around 10 per cent to 20 per cent of carbon emissions in the country. Steel production requires large inputs of coke (a sort of coal) which is extremely damaging to the environment. Coke ovens emit air pollutants such as naphthalene that is highly toxic and can cause cancer. Beijing has targeted the industry as part of its bid to reduce carbon emissions and reach net-zero by 2060. It will be “virtually impossible” for China to produce less steel this year compared to last year, Rohan Kendall, head of iron ore research at Wood Mackenzie, said at the Singapore Iron Ore Forum. However, an executive at Chinese steelmaker Hesteel, said steel mills must pay more attention to lowering their production in order to abide by government policy, especially state -owned mills. China says it is committed to continuing production cuts in steel, and its mills in steelmaking city Tangshan have reportedly lowered output after being warned of punishments if they overproduce. But not everyone agrees that the government will have its way. It is very difficult for the authorities to control production given the number of private and state-owned mills in China, said Zhuang Bin Jun, a former business development group manager at Fortescue Metals. Source: www.cnbc.com, 1 August 2021 Table 1: China’s macroeconomic indicators 2018 2019 2020 2021 Real GDP growth (%) 6.75 5.95 2.24 8.45 Inflation rate (%) 2.11 2.90 2.39 0.85 Population growth (%) 0.38 0.33 0.15 0.03 GINI coefficient 0.468 0.465 0.468 0.466 Source: Statista, accessed March 2024

3 Tampines Meridian Junior College 2024 JC2 Mid-Year Examination H2 Economics Extract 2: Why a more inward-looking China is bad news for the world economy Ever since the 2008 global financial crisis, when the West’s reliability as a trading partner was thrown into question, self-reliance has become a more decisive organising principle for Chinese officials. As a result, the export -dependent growth model on which China built its economic rise in recent decades has been fraying. Exports as a share of China’s GDP peaked at 35 per cent in 2007 but had fallen to around 20 per cent by last year, a level not seen since before China’s accession to the World Trade Organisation in 2001. This shows that external factors like net exports no longer make any meaningful contribution to Chinese GDP growth. Although China’s inward tilt towards self-reliance may have started out as a response to purely economic phenomena – the post-crisis global recession, belt -tightening in the West, the Eurozone crisis, and a general softening of global trade growth in the post-crisis years – China’s more inward-looking development path became clear in its response to the aggressive tariffs and export controls introduced by the Trump administration in the United States. The more obvious result of China’s inward -looking approach is a rebalancing of China’s economy away from a reliance on external demand as a stimulus to growth towards increased dependence on domestic factors. China is reducing its economic dependence on the West by reshaping trade and investment links. A greater push has been made for ‘stronger, better, and bigger’ state -owned enterprises (SOEs) and the past five years have indeed seen a measurable rise in the role that SOEs play in the Chinese economy. These firms now account for more fixed investment in the economy than private foreign firms, for the first time since 2005. Since its dependence on imported technology, food, and fossil fuels has created a substantial strategic vulnerability, Chinese policymakers will likely attempt to build up the country’s ability to supply its own semi-conductors, food, and green energy source over the next few years. This all amounts to a more inward-looking Chinese economy that is more dependent on internal factors rather than external factors for its growth. For China itself, growth is likely to suffer, since there is a wealth of analysis to suggest that the efficiency of SOE -led investments is lower than that of foreign direct investments. For the rest of the world, a China that is more inclined to buy its own stuff than import also means other countries will receive less of a boost to the ir economic activity per unit of China’s GDP. And that is bad news for the world economy. Source: Adapted from Chatamhouse.org, 2022

4 Tampines Meridian Junior College 2024 JC2 Mid-Year Examination H2 Economics Extract 3: Singapore and the United Kingdom (UK) sign green economy pact for sustainable energy, transport and finance Sustainability consists of fulfilling the needs of current generation s without compromising the needs of future generations, while ensuring a balance between economic growth, environmental care and social well-being. Without major changes to the way the planet is run, it will suffer irreparable damage. As concerns about climate change, biodiversity loss, and pollution have become more widespread, the world has shifted to embrace sustainable practices and policies, primarily through the implementation of sustainable business practices and increased investments in green technology. As energy is not subsidised in Singapore, companies are incentivised to use energy judiciously and embrace new energy efficient technologies. Strong pollution control laws also encourage industries to switch to cleaner fuel sources such as natural gas. The Singapore government facilitates the adoption of energy efficien t and emissions reducing technologies through grants and other policy tools to overcome high upfront capital investments and other non-market barriers. Singapore also inked a deal with the UK to create business opportunities in the clean energy, low-emission transport, and sustainable finance sectors. The UK-Singapore Green Economy Framework will support economic growth and job creation, while encouraging the decarbonisation of economic activities. The cooperation will start with a focus on three key pillars: green transport; low-carbon energy and technologies; and carbon markets and sustainab le finance. Singapore’s Minister -in-charge of Trade Relations said , “We look forward to catalysing green growth opportunities while promoting decarbonisation, in partnership with our people, academia and businesses.” Source: Vari