TJC H2 Prelim 2024 P1 QP

© TJC 2024 TEMASEK JUNIOR COLLEGE 2024 JC2 PRELIMINARY EXAMINATIONS Higher 2 ECONOMICS 9570/01 Paper 1 22 August 2024 2 hours 30 min Additional Materials: two 12-page answer booklets READ THESE INSTRUCTIONS FIRST Answer booklets will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. If you need additional answer paper ask the invigilator for a continuation booklet. Answer all questions. Indicate the question number clearly in your answers. Start Question 1 and Question 2 on separate answer booklets. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 9 printed pages and 3 blank page.

2 © TJC 2024 Question 1: The clothing and fast fashion industry Figure 1: Percentage change in p rice index of s elected consumption categories in Singapore Source: Singstat, 2024 Extract 1: Rising prices of clothing Dressing the kids to go back-to-school, not to mention yourself to get back-to-work, will cost more this year. Steve Lamar, president and CEO of the American Apparel and Footwear Association, sees a double- whammy in “the current shipping crisis on top of oppressive tariffs on apparel, footwear and fashion.” His association is calling on the Biden administration to remove tariffs and provide more oversight to the maritime industry to “help now and avert the next shipping crisis,” which is sure to come. The employment costs to move products around, get them on the shelves and rung up at the cash register are going up too. Fashion retailers also have to factor in the effect their price increases will have on consumers already facing escalating costs across the board. In the past year, the CPI for all items tracked by the Bureau of Labour Statistics went up by 5.4%. However, industry leaders have warned that retailers can’t expect the price increases to translate into higher profits as in normal times. “If the wallet is fixed and the price of clothing is going up, consumers’ income will be squeezed”. Adapted from: Forbes, 10 December 2021 -8 -6 -4 -2 0 2 4 6 2019 2020 2021 2022 Food Clothing

3 [Turn Over Extract 2: Fast Fashion and its impact on the environment Fast fashion is a business model that focuses on the production of garments in bulk, and as quickly as possible, in response to current trends. The term was first popularised in a New York Times article in 1989 to describe retail store Zara’s first opening in the United States — the retail brand’s goal, the Times said, was to have a design developed from concept to consumer in only 15 days. While the biggest brands today include large- scale brick-and-mortar retailers with an online presence, like Zara and H&M, fast fashion has increasin