RVHS H2 Prelim 2024 Compiled

RIVER VALLEY HIGH SCHOOL JC 2 Preliminary Examination in preparation for General Certificate of Education Advanced Level Higher 2 ECONOMICS Paper 1 Case Study Additional Materials: Answer Booklet READ THESE INSTRUCTIONS FIRST 9570/01 16 September 2024 2 hours 30 minutes 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 If the question tou are responding to also contains parts, for example 1 a, 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. This document consfsts of 7 printed pages and 1 blank page. [Turn over]

2 Answer all questions. Question 1: Changes in the market for air travel Extract 1: Revenge travel wreaks havoc on more than just airports Air travel is making a comeback. But the aviation sector is struggling to meet surging demand as major airports worldwide are plagued by endless queues at counters and chaos at baggage carousels due to shortage of passenger service crew. This revenge travel can be attributed to pent-up demand as holidaymakers try to make up for lost time. Besides causing headaches for customers and companies, revenge travel is bad news for our warming planet. COVID-19 grounded planes to an unprecedented extent in 2020, resulting in huge drops in flight-related carbon emissions. The International Energy Agency said emissions from international aviation fell almost 45 per cent from 2019 to 2020, a decline comparable to taking 100 million cars off the road. History suggests the rebound in travel we are seeing now will be accompanied by an increase in carbon emissions. To minimise the environmental impact of our post-pandemic adventures abroad, we can consider other ways to travel besides flying. Generally, planes are the heaviest emitters and trains the lightest. A flight from Singapore to Kuala Lumpur (KL) produces 62kg of CO2 per passenger while a passenger who travels to Kuala Lumpur by train only emits 0.8kg of CO2. The potential carbon savings from commuting to Malaysia by train could be substantial. To encourage consumers to choose trains over planes, it is essential to improve the convenience and speed of train travel. The ongoing discussions between Malaysia and Singapore about reviving the terminated KL-Singapore High Speed Rail project offer hope. A direct high-speed rail link would significantly reduce travel time and make train travel a more attractive option, encouraging more people to opt for this environmentally friendly mode of transport. Source: Channel NewsAsia, 07 August 2022 Extract 2: Asian airlines rush to restore routos as air trnvol rocovors from Covld Ahead of the year-end travel season, Asian airlines are ramping up flight options by training and hiring pilots and in-flight crew in a battle to board flyers, with air travel continuing to recover as Covid concerns remain largely downgraded. But analysts and industry groups note that regional airlines are closely monitoring rising fuel prices and interest rates, as economic uncertainties could dampen earnings while airlines are grappling with a gradual recovery. Singapore Airlines (SIA) reported a record operating profit of SG$1.23 billion ($740 million) for the six months ending in September. This marks a significant turnaround from the SG$620 million full-year loss in 2021, driven by increased flight demand following. Singapor~'s reopening to vaccinated travellers in April. However, SIA, like many other ~rners, rem_~ins wary of persistently high fuel costs, inflation pressures across supply chains, ~eopohttcal tensions, and the looming risk of a global recession beyond the Chinese New Year in January. Source: Financial Times, 21 December 2022 ©RVHS2024 9570/01

..... Extract 3: Tho nvlnllon ~octor wnnts l'o ronch not zoro hy 2050 Avintion is rPsp0nslbll for oro11nd 2.5% of global CO2 emissions, with most aircraft pov,,rJr,,,J by c01wt nti0nnl jet fuel. The European Commission predicts that by the middle of the 21 r,t c. ntury. d mm1d for flying could increase aviation's greenhouse gas emissions by upwards of , 00~ over 2005 levels if no drastic measures are taken to reduce them. The aviation industry has adopted the goal of reaching net-zero carbon emissions by 2050. In October, the UN's International Civil Aviation Organization (ICAO) led two weeks of negotiations involving 184 nations to agree on CO2 emissions reduction measures. One of these include ramping up innovative aircraft technologies, "streamlining" flight operations and the increased production and use of sustainable aviation fuels (SAF). Sustainable Aviation Fuels can reduce emissions by 80% according to the International Air Transport Association (IATA}. SAF can be made from several sources ranging from agricultural waste to carbon captured from the air. It is fully compatible with existing aircraft and fueling infrastructure. However, high production costs and limited supply has slowed its adoption. It is estimated that SAF comprises less than 0.1 % of all conventional jet fuel currently used. To accelerate the adoption of SAF, stakeholders such as businesses and governments must collaborate on effective strategies. Governments can incentivise adoption by providing subsidies to airlines to offset costs. This initiative aims to establish a viable pathway for the aviation sector to achieve significant decarbonisation in the coming years. Source: World Economic Forum, 9 December 2022 Extract 4: Overdue brand reboot aims to rescue Air India's battered image Almost a year has passed since India's biggest conglomerate bought Air India Ltd., promising to tum it into a world-class airline. Tata Group, which paid $2.2 billion to buy Air India back from the government, has a five-year transformation plan called Vihaan -- Sanskrit for new dawn. UK-based FutureBrand was last week brought in to help with the makeover, which could include dropping the airline's "outdated" Maharajah mascot, local media reported. There's a "desperate need to improve its product and service," said Shashank Nigam, chief executive officer of airline brand-strategy firm SimpliFlying. Campbell Wilson, who shifted from Singapore Airlines Ltd.'s low-cost unit to become Air India CEO over the summer, told reporters recently that aircraft interiors will be refurbished, including seats, cushions and carpets. Nigam said Air India needs to position itself as a progressive brand that caters to younger people, which is particularly important given India's demographics and sheer size of its young population. By previously branding itself as the custodian of Indian culture and heritage, the airline gave off an impression of being old fashioned and stuck in time, he said, adding that its fleet is old and "needs urgent rejuvenation." Tata said last week that its Vistara joint venture with Singapore Airlines would be merged into Air India, creating the country's second-biggest carrier. "Partnerships like this combine sales effectiveness, customer bases, loyalty programs of multiple airlines, so that you can really make one plus one be worth more than two," said Allan Schulte, Bain & Co.'s head of Asia­ Pacific airlines, logistics and transportation. S