EJC H2 Economics Prelim Exam Paper 1 2024

[Turn over EUNOIA JUNIOR COLLEGE JC2 Preliminary Examination 2024 General Certificate of Education Advanced Level Higher 2 ECONOMICS Paper 1 9570/01 26 August 2024 2 hours 30 minutes Additional Materials: Answer Booklet 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 answer 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. Please note that Paper 1 takes up 40% of the total score. This document consists of 8 printed pages.

2 9570/01 [Turn over Question 1: Towards sustainable fashion Table 1: World cotton production and consumption (in million bales) Year Production Consumption 2021 115 118 2022 120 110 Source: USDA Foreign Agricultural Service, accessed 30 July 2024 Figure 1: Brazil cotton production and exports Source: Global Cotton Outlook 2022/23, Texas Tech University, accessed 30 July 2024 Extract 1: Brazil’s cotton exports surge Low prices for corn have pushed farmers in Brazil to plant cotton instead, resulting in a sharp rise in cotton production. In recent years, Brazil overtook the US as the world’s largest cotton exporter. The South American country exported 12.4 million bales in the 2023 harvest season compared with 11.8 million bales that came out of the US, according to estimates by the US Department of Agriculture. Brazil’s soaring output has more than offset the impact of consecutive years of drought in the US. Meanwhile, global demand for cotton has fallen. Over the past few years, shoppers have increasingly opted for alternative man-made fabrics like polyester and petroleum-based fabrics, which are cheaper and quicker to produce than cotton, but have a much larger environmental toll. Source: Financial Times, 16 July 2024 0 2000 4000 6000 8000 10000 12000 14000 16000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cotton Production (1000 bales) Cotton Exports (1000 bales)

3 9570/01 [Turn over Extract 2: Unfavourable plight of cotton farmers Farmers are at the end of a long and complex value chain, often receiving the lowest prices while bearing high production costs. They are generally at a disadvantage when it comes to price negotiations because they lack access to market information. In addition, many small -scale farmers do not belong to farmer organisations, which leaves them little bargaining power or influence on the prices offered. Cotton farmers receive a small share of the retail price of a garment, not exceeding 10%. Revenues for cotton farmers vary across countries and tend to increase with the size of the farms. Small co