2023 RI H1 Econs Prelims QP

1 Raffles Institution 8843/01/Prelim/Y6/23 [Turn over RAFFLES INSTITUTION 2023 YEAR 6 PRELIMINARY EXAMINATIONS Higher 1 ECONOMICS 8843/01 Paper 1 29 August 2023 3 hours Additional Materials: Answer Paper READ THESE INSTRUCTIONS FIRST Write your name, index number and civics 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 diagrams, graphs or rough working. Do not use paper clips, highlighters, glue or correction fluid. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. Use the cover sheets and tie your answer to the questions separately. This document consists of 10 printed pages and 2 blank pages. H

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3 Raffles Institution 8843/01/Prelim/Y6/23 [Turn over Answer all questions. Question 1: The Fashion Industry Figure 1: World Cotton Prices (US$) Source: Macrotrends, March 2023 Extract 1: Cotton Farmers in India and Pakistan Bear the Brunt of Extreme Heat, Unpredictable Rainfall Farmers have been growing cotton in India and Pakistan for thousands of years. Both countries’ economies are thriving because they have been part of the top 10 cotton exporters along with the US, China, and Brazil. India alone contributes over 26% of the global cotton production. But that shared history and benefit is under threat because of weather volatility. The year 2021 will remain etched in the memory of Anantha Kumar Pichaipillai, a cotton farmer from Tamil Nadu. For the first time in eight years, he did not grow cotton. Extreme rainfall wreaked havoc on his cotton farm. Source: The Wire, 11 Feb 2023 Extract 2: Cotton Subsidies in US Every year, US taxpayers lavish $4 billion on their cotton farmers, a practice that begun in response to the Great Depression, US cotton subsidies apply no matter the farmer’s yield (in fact, the practice often rewards the successful) - which means that cotton producers in the poorest regions of the world are unable to compete with the low prices of their rich American counterparts. In the 2019-20 season, the US paid out more than $2 billion to cotton farmers, up from $1.2 billion the year before. According to a 2007 Oxfam report, eliminating US cotton subsidies permanently could lead to about millions of households in poorer developing countries being able to feed another person based on the higher prices farmers would get for their cotton. In India alone, cotton production sustains the livelihoods of 5.8 million farmers, the majority of whom are small -scale farmers cultivating land less than 2 hectares in size. These farmers live below the poverty line. Many are deeply indebted from the high-interest loans they are forced to obtain from loan sharks to buy fertilizers. Source: Kingpins Media, 24 March 2021 $0.73 $0.82 $0.67 $0.93 $1.12 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 2018 2019 2020 2021 2022

4 Raffles Institution 8843/01/Prelim/Y6/23 [Turn over Extract 3: Why cotton Is called the world’s dirtiest crop Bugs love cotton. Cotton farmers' usual solution is to douse crops in $2 -3 billions worth of pesticides annually - $819 million of which is so toxic that it is classified as hazardous by the World Health Organization. Because of the heavy irrigation required to grow cotton, chemicals are quickly washed into surrounding rivers and regional groundwater and entering every aspect of the ecosystem from there - including rainwater. Cotton pesticides now contaminate land, air, food and drinking water in the USA, India, Pakistan, Uzbekistan, Brazil, Australia, Greece and West Africa. And cotton needs a lot of water to thrive. Globally, cotton consumes 100 billion gallons of water every year. In order to provide this amount of irrigation, waterways in many developing countries are diverted to feed the cotton fields, often with devastating effects. A prime example of this is the Aral Sea. After major rivers that fed the Aral were diverted into irrigation canals to serve cotton farms, the sea turned into a desert bigger than Belgium, Luxemburg, and the Netherlands combined. Source: The Modern Dane, 1 June 2019 Extract 4: What is fast fashion and why is it a problem Fast fashion is the term used to describe clothing designs that move quickly from the catwalk to stores to take advantage of trends. The collections are often based on styles presented at Fashion Week runway shows or worn by celebrities. Fast fashion allow s mainstream consumers to purchase the hot new look or the next big thing at an affordable price. Fast fashion became common because of cheaper, speedier manufacturing and shipping methods, an increase in consumers' appetite for up -to-the-minute styles, and the increase in consumer purchasing power - especially among young people —to indulge these instant - gratification desires. Because of all this, fast fashion is challenging the established clothing labels' tradition of introducing new collections and lines on an orderly, seasonal basis. In fact, it's not uncommon for fast -fashion retailers to introduce new products multiple times in one week to stay on trend. Fast fashion is also called disposable fashion as it encourages a “throw -away” consumer mentality. Many fast fashionistas in their early twenties , the age group the industry targets , admit they only wear their purchases once or twice. All of the elements of fast fashion have a detrimental impact on the planet and the people involved in garment production. Brands like Boohoo, for example, use toxic chemicals, dangerous dyes, and synthetic fabrics that seep into water supplies, and, each year, 11 million tons of clothing is thrown out in the US alone. These garments - full of lead, pesticides, and countless other chemicals - rarely break down because they are predominantly (over 60%) made of synthetics. Instead, they sit in landfills, releasing toxins into the air. Fast fashion’s carbon footprint gives industries like air travel and oil a run for their money. If fast fashion is getting garments to consumers as quickly as possible, regardless of the impact on workers and the environment, slow fashion is the exact opposite. Many "slow fashion" companies are emerging - offering fewer new pieces a year, all of which have a lower environmental impact through mindful manufacturing, fair labor rights, natural materials, and lasting garments. But not everybody is prepared to pay for them. A third of young people surveyed by the London Fashion Retail Academy said they would not pay more than £5 extra for sustainable garments.

5 Raffles Institution 8843/01/Prelim/Y6/23 [Turn over The simplest solution could also be the most effective. Buying a maximum of eight new items a year could reduce fashion's emissions by 37% in the world's major cities, according to research by Leeds University and Arup. Apart from resisting the urges of consumerism, there are some steps one can take to reduce the impact of one’s purchases: • Investigate the brands and see if they use sustainable processes and fair labor practices. • Buy clothes at secondhand stores to help reduce the amount of garment waste and extend their usage. • Speak up and advocate against fast fashion and consumerism to ensure spread of awareness as most people are unaware of fast fashion's social and environmental impact. Source: Various Extract 5: EU wants all textile waste rules in place by 2028 The European Union (EU) is looking to tackle textile consumption in Europe, which has the fourth highest impact on the environment and climate change after food, housing and transport. It wants all planned regulations requiring fashion companies to produce clot