ACJC H2 Prelim 2024 P2 QP

ANGLO-CHINESEJUNIORCOLLEGE 2024JC2PRELIMINARYEXAMINATIONS ECONOMICS 9570/02Higher 2Paper 2 26August 20242hours30mins Additional materials: Writingpapers3cover sheets READTHESEINSTRUCTIONSFIRST Writeyour examindexnumber andnameonall theanswersyouhandin.Writeindarkblueor blackinkpenonbothsidesof thepaper.Youmayuseasoft pencil for anydiagrams, graphsor roughworking.Donot usestaples, paper clips, highlighters, glueor correctionfluid/ tapeinyour answers. Eachessayquestionisworth25marks. Answer atotal of 3essayquestions. YouaretoansweronefromSectionA, onefromSectionBandthethirdfromeither Section. Begineachessayquestiononafreshsheet of writingpaper. Youwill besubmittingyour essayanswersseparately. At theendof theexamination, arrangeyour answersinorder.Fastenyour answersfor eachessayquestionseparatelyusingthecover sheetsprovided. Thisdocument consistsof 3printedpages(includingthispage) and1blankpage.Pleasecheckthat your questionpaper iscomplete.

2 Answer threequestionsintotal SectionA Oneor twoof your threechosenquestionsmust befromthissection. 1 With effect fromJuly 1 2022, the Malaysian government hasdecidednot tofloat theprice of chickens. Instead, a newprice ceiling has beenimplemented. Thisdecisionwas made to safeguard the interests of Malaysian families so that they are notburdenedbyrisingpricesandcost of living. Source: Channelnewsasia, 24June2022 (a) Suppose the Malaysian government decides to remove the priceceilinginthemarket for chickens. Following the removal of the price ceiling, explain how the price mechanismwill allocate thescarceresourcesandhowconsumer andproducer surpluswillchange. [10] (b) Discusstheappropriatemeasuresthat theMalaysiangovernment canadopt toensuretheaffordabilityof chickens. [15] 2 Introduced in 2015, all Singaporeans aged25yearsandabovereceivedanopeningcredit of $500 in their SkillsFuture account. Singaporeans can make use of thesecreditstodeepenexistingskillsor reskill intonewareasoutsideof their current field. Source: SkillsFuturewebsite (a) Explain why a government may need to intervene in the market for skillstraining. [10] (b) Discuss whether the provision of subsidies is the best policy to address themarket failureintheskillstrainingmarket. [15] 3 InJuly2023, Grabannouncedit wasacquiringSingapore'sthird-largest taxi operatorTrans-cab, which has a fleet of more than 2,500 vehicles. The acquisition wouldhave covered Trans-cab’s taxi and car rental business, maintenance workshop andfuel pumpoperations. TheStraitsTimes, 25July2024 (a) Explain howthe market structure in which Grab operates is likely to influencehowpricesandoutput aredetermined. [10]

3 (b) Discuss whether Grab’s acquisition of Trans-cab will benefit or disadvantagetheconsumersinSingapore. [15]SectionB Oneor twoof your threechosenquestionsmust befromthissection. 4 (a) Explain two reasons why changing the exchange rate can be more effectivethan changingthegovernment spendingtoaddresshighinflationinSingapore.[10] (b) Discuss whether inflation or deflati