YIJC 2024 JC2 H2 Prelim 9570 P1 QP_Final

YISHUN INNOVA JUNIOR COLLEGE JC 2 PRELIMINARY EXAMINATION Higher 2 CANDIDATE NAME CG INDEX NO ECONOMICS Paper 1 Case Study Questions Additional Materials: Writing Papers Cover Pages 9570/01 23 August 2024 2 hour 30 minutes 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 7 printed pages and 3 blank pages. [Turn over

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©YIJC2024 9570/01/Prelim/24 3 Answer all questions. Question 1: The Not-So-Certain Economics of Electric Vehicles Extract 1: Electric Vehicle Market Electric vehicles (EVs) are essential to decarboni sing transportation, with their numbers increasing due to rising global demand. While electric cars are significantly cheaper to run — potentially costing up to half as much per mile as similar -sized petrol or diesel vehicles — they are generally more expensive to purchase. To mitigate this cost barrier, many governments offer tax credits and other incentives, making EVs more accessible to a broader range of consumers. Goldman Sachs Research now expects battery prices to fall to $99 per kilowatt hour (kWh) of storage capacity by 2025 — a 40% decrease from 2022 . Analysts estimate that nearly half of this reduction will be driven by falling prices of EV raw materials, including lithium, nickel, and cobalt. Expanding charging infrastructure and advancing battery technology are crucial to accelerating the adoption of EVs. In response to growing demand, cities are increasingly installing more charging stations in public spaces like grocery stores and airports, making EVs a more practical option for everyday use. Furthermore, advancements in battery technology are extending the range of EVs, making them more viable for longer commutes. The combination of improved battery performance and faster charging technology is also minimizing downtime for EV drivers, further enhancing the appeal of electric vehicles. Adapted from: World Economic Forum, 26 Oct 2022 & Goldman Sachs, 1 Nov 2023 Extract 2: The True Cost of Electrifying Transportation The transportation sector accounts for 29 percent of U.S. carbon emissions (and 24 percent worldwide), it’s only natural that electrification