RI 2021 H2 Promotion Examination - Examiner's Report

ECONOMICS Higher 2 Syllabus 9757 Examiner’s Report Year 5 Promotion Examination 2021 Raffles Institution Nurturing the Thinker, Leader & Pioneer TEL: 65 6419 9888 ● FAX: 65 6419 9898 http://www.ri.edu.sg ● One Raffles Institution Lane, SINGAPORE 575954

Y5/9757/Promos/2021 2 © RI 2021 [Turn Over ECONOMICS Y5 H2 Promotion Examination 2021 Paper 9757/01 Paper 1 Case Study (a) With reference to Table 1, distinguish the trend in retail sales by ecommerce and non-ecommerce in the US from 2019Q1 to 2021Q1. [2] Suggested Answer: Identify any 2 differences between the trends, including but not limited to: Ecommerce retail sales increased but non-ecommerce retail sales fell from 2019Q1 to 2020 Q1. [1] AND EITHER Ecommerce retail sales increase throughout the stated time period but non- ecommerce retail sales increased only from 2019Q1 to 2020Q1. [1] OR Ecommerce retail sales peaked in 2021Q1 while that of non-ecommerce retail peaked in 2020Q1. [1] Mark Scheme - 1m for each difference in trend identified - Max 1m if no consideration of the trend for overall time period from 2019Q1 to 2021Q1 at all - Max 1m if no comparative word is used to distinguish between ecommerce sales level and non- ecommerce sales level Examiners’ Comments - Given the command word “distinguish”, students need to provide 2 differences. - Trend questions require students to pick out distinctive feature(s), hence answers that are too detailed (e.g. responses that provide each year-on-year differences) will not be given credit. - Read the question carefully. The question is asking for trend in level of sales, not trend in percentage change or growth rate changes in sales. - To secure the first mark, do not break up the time period but distingu ish the trend in level of sales between ecommerce and non- ecommerce across the entire stated time period from 2019Q1 to 2021Q1. (b) Use the concept of opportunity cost to explain one effect on Amazon as a result of “prioritizing the stocking of essential, like household staples and medical supplies” as referred to in Extract 2. [2] Suggested Answer: • Define opportunity cost: the (benefits from) next best alternative forgone

Y5/9757/Promos/2021 3 © RI 2021 [Turn Over • Application of case material specific to Amazon: The opportunity cost incurred by Amazon when it prioritizes the stocking of essentials is forgoing the revenue (or profits) it could otherwise have received from selling “non-essential goods like flat-screen TVs and toys” (Extract 2). Mark Scheme A response that integrates the concept of opportunity cost into the explanation and uses case evidence to explain what Amazon is giving up by prioritizing the stocking of essential items 2m Defining or explaining opportunity cost theoretically with no link s to the context and/or no links to the benefit that is being forgone (e.g. revenue forgone from sales of