CJC H1 Prelim 2024 QP

© Catholic Junior College 8843/01 JC2 PRELIMINARY EXAMINATION/2024 CATHOLIC JUNIOR COLLEGE JC2 Preliminary Examination Higher 1 ECONOMICS 8843/01 Paper 1 22 August 2024 No Additional Materials are required. 3 hours 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 an 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. This document consists of 10 printed pages. [Turn over

2 © Catholic Junior College 8843/01 JC2 PRELIMINARY EXAMINATION/2024 Question 1: Food Security and Sustainability Figure 1: Prices of selected primary products Source: Macrotrend and Statista, 2024 Figure 2: Fertiliser Price Index Source: The Financial Times, 2022 Extract 1: Sanctions on Russia and global food prices The war in Ukraine has had a major impact on the global supply of agricultural fertilisers, potentially undermining food security around the world. Russia, together with Belarus, is one of the world’s largest sources of mineral fertilisers such as nitrogen fertilisers. After the outbreak of war between Russia and Ukraine in 2022, many nations including the United States and the European Union (EU), have imposed sanctions on Russia’s key exports such as fertiliser and oil. Russia’s response to international sanctions has been to halt exports of more than 200 products. Crude oil is Russia’s largest export, follow ed by refined petroleum such as petrol and diesel.

3 © Catholic Junior College 8843/01 JC2 PRELIMINARY EXAMINATION/2024 Russia is also one of the world’s largest exporters of wheat. In terms of raw materials, Russia is the second largest exporter of cobalt, one of the key elements in making rechargeable batteries. As such, global food prices have been on the rise since 2022. The prices of many foods, ranging from wheat and other grains to meat and oils, have shot up. That’s been driven by a slew of factors, including the rising cost of fertiliser and energy in the past year as well as the Russia - Ukraine war. Around the globe, natural gas is used as a raw material as well as fuel for nitrogen fertiliser production. In response to rising costs of fertiliser, India plans to increase the fertiliser subsidies to a record of more than 1.55 trillion rupees ($20.64 billion) to avoid shortages amid a sharp increase in global prices of nitrogen fertiliser. The figure is almost double the amount budgeted for fertiliser subsidies relative to last year. To ensure food security, the government aimed to support farmers in maintaining high agricultural productivity. Fertilisers are crucial for achieving good crop yields. Furthermore, subsidizing fertilisers en