2024 ASRJC Prelims H1 Econs (QP)

1 © ASRJC Economics Department 8843 / JC2 Prelim / 2024 [Turn over ECONOMICS 8843/01 Paper 1 23 August 2024 Additional Materials: Answer Booklet 3 hours READ THESE INSTRUCTIONS FIRST An answer booklet 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. 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 pages. ANDERSON SERANGOON JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATION Higher 1

2 © ASRJC Economics Department 8843 / JC2 Prelim / 2024 [Turn over Answer all questions Question 1: Agriculture and food Figure 1: Annual change in field crop prices, intermediate foods and feeds prices, and all-food prices from 2003-2022 Note: Examples of intermediate foods and feeds are processed products such as wheat flour and soybean oil. Source: Economic Research Service, US Dept of Agriculture, 27 June 2024 Extract 1: Agriculture R&D and technology adoption INCREASING R&D SPENDING ON AGRICULTURE Doubling government funding for agricultural research and development (R&D) would have tremendous environmental and economic benefits according to a new commission paper in the Journal of Agricultural and Applied Economics. However, increasing R&D funding would require a significant new commitment from policymakers. After reaching a peak in 2002, spending on the United States ( US) public agricultural R&D has fallen by one -third over the past two decades. With a doubling of R&D spending, agriculture productivity is expected to rise by 62% in the US and 44% globally. This, in turn, would reduce crop and livestock prices and make US farmers more competitive internationally. Greater R&D funding and productivity can significantly slow farmland expansion. Doubling R&D spending is projected to reduce global emissions by about 213.4 million metric tons of carbon dioxide equivalent per year. This is largely driven by avoiding deforestation and other conversion of la nd to cropland. Emissions from fertiliser, fuel use, livestock, and other sources are also projected to be lower as scientific advances and technological innovation enable farmers to use inputs more efficiently. All-food price index Intermediate foods and feeds price index Field crop price index

3 © ASRJC Economics Department 8843 / JC2 Prelim / 2024 [Turn over Substantial new investments in agricultural research will yield extensive dividends. Such funding is pivotal to maintaining US dominance in global agricultural exports, curbing future food inflation,