2024 MI Prelims H1 Econs (QP)

Class Adm No Candidate Name: This question paper consists of 8 printed pages. [Turn over 2024 End-of-Year Exams Pre-University 2 H1 ECONOMICS 8843/01 Paper 1 10 September 2024 3 hours Additional Materials: Answer Booklet READ THESE INSTRUCTIONS FIRST Write your name and class on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams or graphs. Do not use staples, paper clips, highlighters, glue or correction fluid. Answer all questions. You are reminded of the need for clear presentation in your answers. 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 paper, ask the invigilator for a continuation booklet. The number of marks is given in brackets [ ] at the end of each question or part question. H

MI/8843/01/PU2/EOY2024 Answer all questions. Question 1: The Chinese Air Travel Industry Extract 1: Tourism Development in China As China transitions into a new stage of high -quality development, it has adopted the implementation of the new development concept of “innovation, coordination, green, openness, and sharing”. China’s tourism industry is of significant importance for promoting this transition towards a more sustainable, innovative, and inclusive tourism within China and globally. Thus, as a pillar of China’s new-era economy, the tourism industry plays a crucial role in meeting the growing expectations of people regarding the quality of life. As a result, environmental supervision, ecological protection, green technology and technological innovations have been embraced by some of the provincial authorities such as the Yangtze River Delta. They exhibit superior development, influencing neighbouring regions through spillover effects. The emergence of virtual experiences, smart guides, promotion of spiritual and cultural tourism, development of high-speed rail and the upgrading of airports has spurred interest in domestic tourism. However, the heav y subsidies offered to the provincial and city governments and travel related industries including airlines has cost China over 500 billion dollars. Adapted from: www.mpdi.com, June 2024 Extract 2: The State of the Chinese Airline Industry The Chinese domestic air travel industry is the second largest in the world and in 2023 has already surpassed pre -pandemic levels. Its international traffic on the other hand, is still lagging and full recovery to pre-pandemic levels is only expected beyond 2025. Figure 1: China’s passenger traffic recovery (2023 vs 2019) (Note: The dotted line at 100% represents the 2019 levels) Source: IATA Sustainability and Economics, DDS, February 2024 Domestic International

3 MI/8843/01/PU2/EOY2024 [Turn over Ext