RVHS H1 Econs P1 QP

1 This document consists of 9 printed pages and 3 blank pages [Turn over ECONOMICS 8843/01 Paper 1 10 September 2024 3 hours Additional Materials: Answer Booklet READ THESE INSTRUCTIONS FIRST Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. Answer Question 1 and Question 2 on separate booklets. You can ask for an additional booklet if you need more than one for a question. For each Answer Booklet: Write your name, centre number and index number on the first page of all Answer Booklets that you hand in. Write clearly and use capital letters. For each booklet, use both sides of the paper. Write in dark blue or black pen. HB pencil may be used for graphs and diagrams only. DO NOT WRITE ON ANY BARCODES. Write the number of the question you are responding to in the first margin. Question Part 1 ai 1 aii If the question you are responding to also contains parts, for example 1a, write the question part in the second margin. Do not tear out any part of the Answer Booklet. All work must be handed in. If you have used any additional booklet, please insert it inside the first Answer Booklet. RIVER VALLEY HIGH SCHOOL JC 2 Preliminary Examinations in preparation for General Certificate of Education Advanced Level Higher 1

2 © RVHS 2024 8843/01 Answer all questions. Question 1: Global Impacts on Prices and the Renewable Energy Surge Table 1: Indices of selected primary commodity prices All Primary Commodities Food Petroleum Weights Year 100.0 27.8 26.6 2016 100.0 100.0 100.0 2017 113.3 103.8 122.7 2018 127.7 102.5 155.6 2019 117.0 99.4 142.9 2020 105.9 101.1 96.3 2021 161.5 128.4 156.3 2022 215.9 147.4 231.4 Source: www.imf.org, 7 December 2023 Extract 1: Businesses in Singapore squeezed by soaring petrol and supply expenses amidst Ukraine invasion Businesses across various sectors are facing increasing pressure as Russia’s invasion of Ukraine further disrupts global supply chains and pushes up prices for fuel and key food ingredients significantly. With Russia being one of the world’s top three oil producers, fears of supply problems have driven up global oil prices. The conflict has also sparked fears about global grain production and the supply of edible oil. Russia and Ukraine together account for more than a quarter of global wheat exports , while Ukraine alone makes up almost half of the exports of sunflower oil. Both are key commodities used in many food products. Such concerns have sent basic commodity prices soaring, mirroring the crisis in energy markets. Meanwhile, already-strained global supply chains have come under further stress. Food manufacturers, wholesalers and distributors are also keeping an eye on freight rates, which will make it more expensive for them to move their goods around. “It has caused a lot of panic in Singapore,” said Mr David Tan, president of the Singapore Food Manufacturers’ Association (SFMA). This means that even though Singapore does not import wheat directly from the warring countries, companies in Singapore, ranging from importers to bakeries, snacks, and noodle producers, may still end up paying more for supplies from elsewhere, especially if the panic buying continues as the global economy recovers from the Covid-19 pandemic, said Mr Tan. "While most countries have strategic reserves for food and other essential supplies, in land - scarce countries like Singapore, it is difficult to do so for long periods, particularly for perishable items," Mr Tan added. Additionally, food retailers are also susceptible to the risk of incurring losses, especially those selling non-essential items. Source: Channel NewsAsia, 3 March 2022

3 © RVHS 2024 8843/01 urn over Extract 2: UK’s planned price caps for essential food items face fierce opposition from retailers The British government is working on a voluntary agreement with food sellers to cap prices of essential items such as bread, eggs and milk in an effort to ease the financial squeeze on poorer members of society. “The government is working constructively with supermarkets as to how we address the very real concerns around food inflation and the cost of living,” Health Minister Stephen Barclay told media in London. With food and drink prices rising at the fastest pace in half a century, the British move mirrors steps already taken by other European countries, some of which have imposed mandatory price controls. However, retailers and economics experts throughout Europe reject many of these measures as inefficient and often counterproductive. And because price caps must apply to all retailers, they tend to hit small family corner grocery stores hardest, since such businesses primarily sell essential items and have no hope of recouping lost revenue. Some governments continue to resist the call for price controls. Spain, for instance, has cut its sales tax on food instead. Source: The Straits Times, 30 May 2023 Extract 3: Singapore’s youth drive towards a green future Singapore is one of the world’s leading energy and chemical hubs, home to companies with major refining and petrochemical operations. But young people find the fossil fuel industry unappealing, with many considering a career in clean energy a safer bet. Th is perspective is strongly influenced by global climate movements demanding the industry's demise. Connecting these concerns, the stark reality of burning fossil fuels for energy becomes apparent. The release of greenhouse gases like carbon dioxide during this process contributes to the trapping of heat in the atmosphere. This heightened heat, in turn, fuels a cascade of detrimental consequences such as extreme weather events, biodiversity loss, deteriorating health, and rising sea levels. In the eyes of these forward -thinking individuals, prioritising reduced consumption and embracing clean energy emerge as the pathway to a net -zero future, overshadowing the reliance on fossil fuels. Source: Channel NewsAsia, 3 February 2022 Extract 4: Singapore’s transition to clean energy Singapore is setting up a S$5 billion fund to invest in clean energy technology and infrastructure as it works toward net zero emissions by 2050. This Future Energy Fund will “put us in a better position to move quickly on critical infrastructure and enhance our security in clean energy,” said Deputy Prime Minister Lawrence Wong. Singapore’s shift to renewable energy sources like solar and wind has been hampered by its limited land space. Currently, some 95% of the city-state’s electricity comes from natural gas.

4 © RVHS 2024 8843/01 urn over With the power sector accounting for 40% of total emissions, the government plans to import low-carbon electricity from neighbouring countries, which will require investments in submarine cables and grid infrastructure. It’s also looking into hydrogen gene ration, storage, and delivery. Across Southeast Asia, governments have expressed climate ambitions; however, there has been a lack of substantial action to meet nationally determined contribution (NDC) targets by 2030, particularly in the energy and nature sectors, which collectively re present 85% of the region's total emission reduction goals. In Singapore, the carbon tax is scheduled to gradually increase from the current S$5 per tonne of emissions, ultimately reaching a range between $50 and $80 per tonne by 2030. These measures are a imed at accelerating the transition to renewable energy