2022 RI H1 Econs Prelims (CSQ2 Examiner's Report)

8823/01/Prelim/Y6/22 1 © RI 2022 ECONOMICS Higher 1 Syllabus 8823 Examiner’s Report Year 6 Prelims 2022 Case Study Question 2 R a f f l e sI n s t i t u t i o n N u r t u r i n g t h e T h i n k e r , L e a d e r & P i o n e e r TEL: 65 6419 9888 ● FAX: 65 6419 9898 http://www.ri.edu.sg ● One Raffles Institution Lane, SINGAPORE 575954

8823/01/Prelim/Y6/22 2 © RI 2022

8823/01/Prelim/Y6/22 3 © RI 2022 ECONOMICS Y6 H1 Prelims 2022 Paper 8823 Case Study 2 (a) With reference to Figure 1, summarise the main changes in Vietnam’s GDP from 1985 to 2019. [3] Overall trend [1m] • Vietnam consistently recorded positive annual GDP growth rates hence GDP rose from 1985 – 2019. Refinement [additional 2m – 1 mark for each correct observation] • GDP grew at an increasing rate from 1985 to 1995. • GDP grew at a falling rate from 1996 to 1999. • GDP grew fastest in the period from 1992 to 1998 (at least 8%). • GDP grew at a steady rate of around an average of 6-7% between 1999 to 2019. Suggested summary of main changes: Vietnam consistently recorded positive annual GDP growth rates hence GDP rose from 1985 – 2019. In the earlier years, from 1985 to 1995, Vietnam’s GDP grew at an increasing rate, peaking at 9.5% in 1995. In the period between 1992 and 1998, Vietnam’s GDP grew the fastest, with growth rates of at least 8%. However, after 1995, GDP started to grow at a falling rate, reaching a steady rate of around 6-7% on average, between 1999 and 2019. Comments: • Many students being unable to provide a summary of main changes in GDP. • There were some students who mixed up GDP and GDP growth rate. These resulted in misinterpretation of the data, with some students stating that fastest increase in GDP was from 1986 to 1989 . This would be correct for GDP growth rate, but incorrect for GDP . The fastest increase in GDP should be from 1992 to 1998 where growth rate was at least 8%. • Students should also recognise that question requirement was to ‘summarise the main changes’, so stating that GDP grew fastest in 1995 and grew the slowest in 1986 are invalid observations. A one-year data does not constitute a summary of changes. A summary entails observation from a range of years (at least 3 years). • Similarly, a statement like ‘ GDP rose at a rising rate from 1985 to 2019 ’ is also not very meaningful as it does not provide information about main changes since rates of growth varied quite a lot over the data range. (b) (i) Explain the difference between GNI and GDP. [1] One mark for clear difference explained: GDP is the total value of all final goods and services produced within the geographical boundary of a country, regardless of whether resources used in production were local or foreign owned. On the other hand, GNI is the total income received by the residents of a country, regardless of where the factors of production a