2024 YIJC H1 Economics Prelim P1 QP

YISHUN INNOVA JUNIOR COLLEGE JC 2 PRELIMINARY EXAMINATION Higher 1 CANDIDATE NAME CG INDEX NO ECONOMICS Paper 1 Case Study Questions Additional Materials: Writing Papers Cover Pages 8843/01 23 August 2024 3 hour READ THESE INSTRUCTIONS FIRST Write your name, CG and index number on the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a HB pencil for any diagrams or graphs. Do not use staples, paper clips, glue or correction fluid/tape. There are two questions in this paper. Answer all questions. Start each question (not each part) on a fresh piece of writing paper. At the end of the examination, fasten your work for each question separately. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 8 printed pages and 2 blank pages. [Turn over

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©YIJC2024 8843/01/Prelim/24 3 Answer all questions. Question 1: Electricity Market Table 1: Electricity consumption by sector (in Gigawatt hours) 2018 2019 2020 2021 2022 Household 7231.5 7681.3 8244.5 8277.7 7911 Industrial- related 21439.8 21463.9 20978.9 22293.1 22693.9 Source: Energy Market Authority, 1 June 2023 Extract 1: Rise in electricity prices Electricity prices will go up in Singapore as a result of higher carbon tax, a scheduled increase in the goods and services tax (GST) and rising energy costs. “The carbon tax is part of a suite of measures to support Singapore’s transition to a low -carbon economy, by steering consumers and producers away from carbon -intensive goods and services, holding businesses accountable for their emissions, and enhancing the business case for the development of low -carbon solutions,” said Energy Market Authority’s (EMA) spokesman. Power generation companies levied the carbon tax are expected to pass on some of the cost to electricity retailers like SP Group, which could then pass on these additional co sts to customers. Dr David Broadstock, senior research lead for energy transition at the National University of Singapore said the rising cost from the carbon tax could encourage innovation among companies to reduce the carbon content of the fuel used. At the same time, having more clean energy imports in the future could also have a bearing on the influence of carbon tax on future electricity prices, he added. Around 95 per cent of Singapore’s electricity comes from imported natural gas, which means Singapore cannot be fully insulated from developments in the global energy market. EMA said that natural gas which is the cleanest form of fossil fuel will remain the country’s main source of energy for the next decade, accounting for more than