CJC H2 Prelim 2024 P1 QP

CATHOLICJUNIORCOLLEGEJC2PreliminaryExaminationHigher 2 ECONOMICS 9570/01 Paper1 22August 2024 NoAdditional Materialsarerequired. 2hours30minutes READTHESEINSTRUCTIONSFIRST Ananswerbookletwill beprovidedwiththisquestionpaper.Youshouldfollowtheinstructionsonthefrontcoveroftheanswerbooklet. Ifyouneedanadditional answerpaper,asktheinvigilatorforacontinuationbooklet. Answer allquestions. Thenumberofmarksisgiveninbrackets[]attheendofeachquestionorpartquestion. Thisdocumentconsistsof 8printedpages. [Turnover©CatholicJuniorCollege 9570/01JC2PRELIMINARYEXAMINATION/2024

2 Question1: Security, sustainability, andcompetitioninthefoodindustry Extract 1: Fertiliser suppliesandthreateningglobal foodsecurity The war in Ukraine is having a major impact on the global supply of agricultural fertilisers,potentiallyunderminingfoodsecurityaroundtheworld. Russia, together withBelarus,isoneofthe world’slargest sourcesof mineral fertilisers. After Russia’sinvasionof UkraineinFebruary2022, many nations, including the United States and the European Union (EU), imposedsanctions on the country. Although there were specific exemptions in thesanctionsregimetopermit Russian and Belarus to continue to supply fertilisers, exports have fallen foul of othermeasuresdesignedtoisolatetheregion. Russiasaidthat itsfertiliser wasbeingpreventedfromreachingcustomersintheglobal south.ShortageshavebeencompoundedbyexportrestrictionsimposedbyChina,whichaccountsfor30% of global phosphate fertiliser supplies. Because of measures to protect its domesticmarket,China’sexportsshrunkby50%in2022,theWorldBanksays. TheWorldEconomicForum’s2023Global RisksReportrankedaloomingfoodsupplycrisisasoneof thetopfour threatsfacingtheworld, predictingthat thelaggedeffect of apricespikeinfertiliser wouldhit foodproductionacrosstheworldin2023, oncethestocksoffertilisersattheprevioustransactedlowerpricewindup. Source: Adaptedfromhttps://www.weforum.org1March2023 Figure1: Fertiliser PriceIndex ©CatholicJuniorCollege 9570/01JC2PRELIMINARYEXAMINATION/2024

3 Figure2: Wheat price($per bushel) Source: TheFinancial Times, 21March2022 Extract 2: Excessfertiliser usesanditsenvironmental impact Fertilisers have transformed the way the world produces food. Beyond largebenefitsfor foodsecurity, they also bring environmental benefits through higher yields (andthereforelesslanduse). But therecanbeadownside. Whenweoverapplyfertilisers–nomatterwhethertheyarenatural ones like manure or synthetic fertilisers – excess nutrientsarewashedoff andpollutethenatural environment. Nitrogen andphosphorusarethetwomainfertilisersthat farmersaddtotheir fields. Researchpresented here shows that nearly two-thirds of the nitrogen we use on our crops becomes apollutant; morethanhalf of appliedphosphorusdoes. Therearelargedifferencesinhowmuchpollution countries generate through their agricultural practices. Some produce almost none;othersproducehundredsofkilogramsperhectareofcropland. Source: Adaptedfromourworldindata7Sept 2021 Extract 3: China’s Luc