JPJC H1 Prelim 2024 QP

JURONGPIONEERJUNIORCOLLEGEJC2PreliminaryExamination2024 ECONOMICS8843/01Higher 1 26August2024 Paper1 3hours Additional Materials:AnswerBooklets READTHESEINSTRUCTIONSFIRST Two answer booklets will beprovidedwiththis questionpaper. Youshouldfollowtheinstructions onthe front cover of the answer booklet. If you need additional answer paper, ask theinvigilator for acontinuationbooklet. Answer allquestions. Thenumberofmarksisgiveninbrackets[]attheendofeachquestionorpartquestion. If there are part questions you did not attempt, please write the question number and part in themargins beforeyousubmit your answers. (i.e. if didnot complete2b,indicate2binthemarginoftheanswerscriptthatyousubmitforquestion2.) Thisdocumentconsistsof 8printedpages.

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3 Question1: RiceandFoodSecurity Extract 1: Worldfoodpriceshit recordhighin2022 Food prices surged after Russia's invasion of Ukraine in February last year on fears ofdisruptions to Black Sea trade. Russia and Ukraine are major exporters of wheat, corn,barley and sunflower oil via the Black Sea, and Moscow's invasion of its neighbour hasstalled Ukrainian exports. The disruption caused by Russia's invasion of Ukraine raisedconcernsof shortages, sent theU.N. foodagency'saveragepriceindextothehighestlevelon record. The Food and Agriculture Organisation's (FAO) food price index tracksinternational prices of themost globallytradedfoodcommodities, averaged143.7pointsin2022, up 14.3%from2021, andthehighest sincerecordsstartedin1990, theagencysaidon Friday. The index had alreadygained28%in2021fromthepreviousyear astheworldeconomyrecoveredfromtheimpactofthepandemic. Source:adaptedfromReuters,6January2023 Figure1: WorldFoodPriceIndex Source:https://tradingeconomics.com/world/food-price-index Extract 2: Thailand had sought rice price pact with Vietnam to boost 'bargainingpower' Thailand and Vietnam were in talks on a pact to raise the price of their rice exports toimprove farmer incomes (profits), a Thai government official said on Friday. AgricultureofficialsfromThailandandVietnam, theworld'ssecondandthirdbiggestriceexporters,metin Bangkok onFridaytodiscussjoint measurestosupport their farmersandriceindustriesandmanagegrowingproductioncosts. Thericepricehadbeenlowfor morethan20yearswhilethecostofproductionhadbeenincreasing. Source:adaptedfromReuters,27May2022 Extract 3: Global riceshortageisset tobethebiggest in20years FromChinatotheU.S.totheEuropeanUnion,riceproductionisfallinganddrivinguppricesfor morethan3.5billionpeopleacrosstheglobe, particularlyinAsia-Pacific.Theglobal ricemarket isset tologitslargest shortfall intwodecadesin2023. At theglobal level,themostevidentimpactoftheglobal ricedeficithasbeen,andstill is,decade-highriceprices. Source:adaptedfromhttps://www.cnbc.com/2023/04/19,accessed2June2024

4 Extract 4: Strainedricesupplies Inthesecondhalf of last year, swathsof farmlandintheworld’slargestriceproducerChinawere plagued by heavy summer monsoonrainsandfloods. Theaccumulatedrainfall inthecountry’sGuangxi andGuangdongprovince, China’smajor hubsofriceproduction,wasthesecondhighest inat least 20years. Similarly, Pakistanwhich represents7.6%ofglobal ricetrade saw annual production plunge 31%year-on-year due to severe flooding, that alsoaffected most parts of the country in 2022. In addition to tighter supply challenges, ricebecame an increasingly attractive alternative following the surge in price of other majorgrains since Russia’s invasion of Ukraine in February 2022. The resulting rice substitutionhasdrivenupdemand. The global rice production deficit situation will increase thecost of importingricefor majorriceimporterssuchasIndonesia, Philippines, MalaysiaandAfricancountriesin2023.Manycountrieswill alsobeforcedtodrawdowntheirdomesticstockpiles.Countriesmostaffectedby the deficit would bethosealreadysufferingfromhighdomesticfoodpriceinflationsuchasPakistan,Turkey,SyriaandsomeAfricancountries. Source:adaptedfromhttps://www.cnbc.com/2023/04/19,accessed2June2024 Extract 5: CanVietnamgrowgreener rice? Rice – Asia’s principal staple – is to blame for around 10 per cent of global emissions ofmethane, agasthatovertwodecadestrapsabout80timesasmuchheatascarbondioxide.Usually associated withhighlevelsof methanearealsogeneratedbybacteriathat growinfloodedricepaddiesandthriveif leftover strawrotsinthefieldsafterharvest.Themessagefromscientistsis:Ricecannotbeignoredinthebattletocutemissions. A programme – organised by the International RiceResearchInstitute(IRRI) –istryingtosteadily shrink methane emissions from rice production. This programme requires thefarmersinVietnamtouponharvesting, pushcartsoverflowingwithstrawbalesthatwill laterbesoakedandlaidout togrowstrawmushrooms.Oncethefungi arereadytheywill besoldbeforethefarmerstakebackthestrawandfunnel itintoacompostingmachine.Twomonthslater it will bereadyandcanbesoldforaround15centsakilogram.Vietnam’senvironmentministry says irrigated rice accounted for almost half of methane emissions in 2019.Climate-friendlystrawmanagement hasbeenintroducedandspread“widelytofarmersandlocal agricultural officials” throughout the country, according to CGIAR, an internationalagricultural researchcentre. Howmanypractisewhat theyhavelearnedisunclear.In2022,the World Bank said that more than 80 per cent of rice strawin the Mekong Delta is stillburnedinthefieldsafterharvest. Source:TheStraitsTimes,24March2023 Extract 6: High-tech farming 'toolbox' can help Singapore weather future foodsupplychallenges Food security is the state of having reliable access to a sufficient quantity of affordable,nutritious food. It is crucial for public health, economic stability, and social harmony,particularlyinnationslikeSingaporethatdependheavilyonfoodimports,ensuringresilienceagainstglobal supplydisruptionsandmaintainingsovereigntyovertheirfoodsupply. Developinga"toolbox"ofhigh-techfarmingsolutionsinSingaporewill equipthecountrywiththe capabilities it needs to scale up local production when the need arises, even if suchstrategies are not be deployed immediately, Trade and Industry Minister Chan Chun Sing

5 said. AccordingtoMinister Chan, onceSingaporehasbuilt suchcapabilities,thenwhentheconditionsnecessitateit, wecanscaleupourcapacity(forlocal production).Forinstance,ifdemand for locally produced food goesupbecauseof natural causes, another outbreakofaninfectiousdisease, orbecauseofexportrestrictionsthatdisruptsupplychains,Singaporewill havetheknow-howtoincreaseproduction. The global food system is facing multiple challenges and there is a need to growmoreaffordable, high-quality food to feed a growing global population in a sustainable way.Ensuring the resilience of supply chains is also crucial. The Republic nowbanksonthreestrategies to safeguard its food supply - importing from a diversity of countries andjurisdictions, boosting local production, and maintain adequate stockpiles of essential fooditems that can meet our nutritional needs during a severe food supply disruption oremergency. The contribution of each strategy to overall food supply depends on Singapore's securityneedsat that point, aswell astheassociatedcostsandopportunitiesofeach.Forinstance,during peacetime, Singaporeisabletocount onitsmultiplesourcesof foreignimports. Buteven then, the country will still invest in developing its local agri-tech capabilities. Thisapproachof buildingupaportfolioof different technologieswill alsoallowSingaporetofindthe most appropriate solution to scale upcapacitywhenneeded. In2019, Singaporeset a"30 by 30" goal to produce 30 per cent of its nutritional needs with local food by2030. Currently,morethan90percentofthenation'sfoodisimported. Source:adaptedfromTheStraitsTimes,17March2021 Questions (a) (i) With reference to Figure 1, describethechanges intheworldfoodpricefortheperiodfromJanuary2020toJanuary2023. [2] (ii) Withtheaidof adiagram, account for theextent of thechangeinworldfoodpriceinMarch2022. [5] (b) UsingtheconceptofProductionPossibilityCurve(PPC), explainthelikelyimpactof‘severeflooding’ (Extract4)ontheP