JPJC H2 Prelim 2024 P1 QP

JURONGPIONEERJUNIORCOLLEGEJC2PreliminaryExamination2024 ECONOMICS 9570/01Higher 2 26August2024 Paper1 2hours30mins 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. Iftherearepartquestionsyoudidnotattempt,pleasewritethequestionnumberandpartinThemarginsbeforeyousubmityouranswers.(i.e.ifdidnotcomplete2b,indicate2binthemarginoftheanswerscriptthatyousubmitforquestion2.) Thisdocumentconsistsof 7printedpagesand1blankpage.

2 Answer allquestions. Question1: Winnersandlosersinthecoffeemarket Table1: Summaryof worldcoffeebeanmarket ('00060kgbags) Source:Statisa.com Extract 1: Thewinnersof thecoffeebeanpricespike Since 2016, coffeebeanpriceshavedropped30%belowtheaveragefor thepast decade,according to the International Coffee Organisation, a body representing 49 membercountries which export and import coffee bean. Arabica coffee bean prices inMarchwereabove$1.12per pound, afar cryfromthepeakofover$3.00perpoundaround2011.Manyof the 25 million coffee bean farmers worldwide struggle to cover their operating costsasinput prices continue to rise. These coffee bean price drops are mostlyfelt bysmall-scalefarmersincountriesthat dependhighlyoncoffeebeanexportsasasourceofincome,suchas Burundi, Uganda, andHonduras, wherelowpricescoupledwithhigher productioncostshaveresultedinlossesandforcedthemtoexitthemarket. But prices of Arabica, the world's most commonly produced coffee bean, rose last monthdue to concerns over its availability fromthepandemic, saidtheICO. ArabicacoffeebeanfromBrazil, the world's largest producer, jumped 10%in March as comparedtoFebruary.The current coronavirus pandemic has led to supply disruptions —frommanufacturing totransportation to retail — as lockdowns were imposed around the world. There is alsoevidence that countries are bringing forward coffee bean purchases on anticipation aboutfuturesupplydisruption. AccordingtoaReutersreport,coffeebeanimportersinsomeofthelargest consumingcountriesarestockpilingandbringingforwardordersbyuptoamonthasthey fear prices will rise further. On the global situation overall, currently consumption ofcoffee bean is estimated to exceed production further increasing the price of coffeebean.That is good news for farmers in key coffee bean producing regions, who have beenstrugglingascoffeebeanpriceskept slumpingfor thepast fewyears. Thisalsomeansthatcoffee bean farmers can start to grow more coffee crops. Coffee bean farmers could bewinnersascoffeebeanpricesspike. Source:adaptedfromCNBC,20April 2020 Extract 2: Thesustainabilityproblemspercolatinginthecoffeesupplychain From intimate, family-owned coffee shops to popular franchises with clogged drive-thrulanes, people certainly love their coffee, consumin