RI 2021 H2 Promotion Examination - Paper 2

9757/02/Promo/Y5/2021 © RI 2021 [Turn over RAFFLES INSTITUTION 2021 YEAR 5 PROMOTION EXAMINATION Higher 2 ECONOMICS 9757/02 Paper 2 Essay Questions 22 September 2021 1 hour 30 minutes Additional Materials: Answer Paper Cover Sheet x 2 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 two questions. Start each question on a fresh sheet of answer paper. Attach a cover sheet and attach the answer to each question separately. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 2 printed pages and 2 Cover Sheets.

2 9757/02/Promo/Y5/2021 © RI 2021 Answer two questions. 1 Online purchases from overseas retailers have grown as consumers enjoy the convenience and lower prices of shopping for different types of goods from small-ticket items like mobile phone accessories to big -ticket items such as furniture. However, domestic brick and mortar retailers have been hit hard in recent years. To level the playing field for domestic retailers, the government will charge GST on all online purchases from overseas into Singapore. Explain the differing effects from the imposition of GST on the market for various types of goods purchased from overseas retailers and discuss the effectiveness and desirability of such a policy. [25] 2 The original electric vehicle (EV), the Nissan Leaf, has lost its market share despite growing demand for environmentally friendly products. Newer car manufacturers such as Tesla (USA) and BYD (China) have toppled Nissan’s lead, and the global computer chip shortage has also created cost concerns given its use in the dashboards of the Nissan Leaf. Source: CNA.com, 17 July 2021 a) Explain the effect of the above developments on the price and output of an incumbent EV firm such as Nissan. [10] b) Discuss the factors that Nissan is likely to consider in merging with another car manufacturer. [15] 3 a) Explain why governments intervene in the market for health screening services. [10] b) Discuss the effectiveness of various government policies to address the market failure in the market for health screening services. [15]

3 9757/02/Promo/Y5/2021 © RI 2021 RAFFLES INSTITUTION 2021 YEAR 5 PROMOTION EXAMINATION Higher 2 ECONOMICS 9757/02 22 September 2021 COVER SHEET – ESSAY QUESTIONS Name: ______________________ Civics Class: ________________ Paper Question Marks Economics Tutor: ____________ 2 (write question attempted) /25

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