RI 2021 H2 Promotion Examination - Paper 1

9757/01/Promo/Y5/2021 © RI 2021 [Turn over RAFFLES INSTITUTION 2021 YEAR 5 PROMOTION EXAMINATION Higher 2 ECONOMICS 9757/01 Paper 1 Case Study 22 September 2021 1 hour 10 minutes 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. Attach this cover sheet to answers for Paper 1. Name: ______________________ Civics Class: ________________ Question Marks Economics Tutor: ____________ 1 /30 This document consists of 4 printed pages and 1 blank page.

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3 9757/01/Promo/Y5/2021 © RI 2021 [Turn over Question 1: The Rise of Ecommerce Extract 1: The rise of ecommerce during COVID around the world The COVID-19 pandemic has dominated global economic development during 2020, with the global economy predicted to shrink by at least four percent over the year. Restrictions on movement and other interventions to protect public health reduced economic activity in most sectors and most countries, affecting production, distribution and consumption. One positive impact within this, however, has been a growth in the market share of trade and retail taken by ecommerce. It seems likely that the accelerated trend towards ecommerce seen during the pandemic will be sustained during recovery. Even as traditional brick -and-mortar stores open their doors again, more shoppers would be shopping online. Various sources, October 2020 Table 1: Quarterly growth rates of retail sales in the US by segment 2019Q1 – 2021Q1 % change in retail sales Ecommerce Non-ecommerce 2019Q1 11.6 0.20 2019Q2 13.6 1.50 2019Q3 17.3 2.40 2019Q4 16.4 1.60 2020Q1 19.1 0.60 2020Q2 23.0 -29.30 2020Q3 17.2 -20.50 2020Q4 14.0 -5.50 2021Q1 7.7 -0.90 Source: Adapted from eMarketer Extract 2: The US ecommerce market during COVID-19 In the first quarter of 2020, Amazon said that its net sales jumped 26% year-on-year to $75.5 billion as people flocked to its site. Amazon’s large product selection, low prices, and reliable delivery are factors that make it a clear beneficiary of ecommerce acceleration during the coronavirus pandemic. In April, Amazon had to prioritize the stocking of essentials, like household staples and medical supplies, as it struggled to deal with a sudden surge in demand for online orders from customers avoiding stores. It temporarily stopped sales of non-essential goods like flat-screen TVs and toys while hiring 175,000 additional workers to keep up with the heightened demand. Similarly looking to capitalize on the digital sales surge, Walmar