2024 DHS Economics Preliminary Examination 9570

© DHS 2024 9570/01/2024 Name: Centre/Index Number: Class: DUNMAN HIGH SCHOOL Preliminary Examination Year 6 Economics (Higher 2) 9570/01 Paper 1 Case Study Questions 16 September 2024 2 hours 30 minutes No Additional Materials are required. READ THESE INSTRUCTIONS FIRST An answer booklet will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. If you need additional paper ask the invigilator for a continuation booklet. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 7 printed pages including this cover page. [Turn over

© DHS 2024 9570/2024 Answer all questions. Question 1: The impact of soaring prices Table 1: Wheat production (million metric tons) Country/Year 2018 2019 2020 2021 2022 Australia 17.6 14.5 31.9 36.2 40.5 China 131.4 133.6 134.3 136.9 137.7 Russia 71.7 73.6 85.4 75.2 92.0 Source: US Department of Agriculture, accessed 18 August 2024 Extract 1: Ukraine war to cause biggest price shock in 50 years The war in Ukraine is set to cause the "largest commodity shock" since the 1970s, the World Bank has warned. It said disruption caused by the conflict would contribute to huge price rises for goods ranging from natural gas to wheat and cotton. The increase in prices "is starting to have very large economic and humanitarian effects", a senior economist at the World Bank added. He said, "households across the world are feeling the cost of living crisis. We're particularly worried about the poorest households since they spend a larger share of income on food and energy, so they're particularly vulnerable to this price spike". Wheat price is forecast to increase and reach new record highs in dollar terms. "Wheat is one of the hardest agriculture exports to replace," according to a research note from the Bank of America. It points out that poor weather conditions in North America and China are likely to exacerbate the impact of Ukrainian supplies being reduced, something which will continue because the war has disrupted the spring planting season. Demand was also shifting as importers rushed to find alternatives to Russian and Ukrainian grain. Thailand's rice shipments in the first two months of 2022 soared from the same time last year, according to Thai Rice Exporters Association data. Source: adapted from Ukraine war to cause biggest price shock in 50 years - World Bank, BBC News, 27 April 2022 and Thai rice exports surge as Ukraine war roils global food supply, Nikkei Asia, 21 April 2022 Extract 2: Kellogg hikes sales forecast Kellogg Co raised its 2022 sales forecast banking on more price increases to help counter the impact of supply shortages stemming from the war in Ukraine. Kellogg, which also makes Pringles and Eggo