RI Y5 H2 Promotion Examination - Examiner's Report 2019

1 ECONOMICS Higher 2 Syllabus 9757 Examiner’s Report Year 5 Promotional Examination 2019 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

2 ECONOMICS Y5 H2 Promotional Examination 2019 Question 1 Case Study Note: Good sample scripts have been included in the examiner’s report. These good sample scripts are not model answers – there may still be room for improvement. What you can learn from them is that these students explained, not just stated, their points. They also made good reference to case material to link to their theoretical knowledge, choosing the most appropriate framework. (a) Using Table 1, compare the changes in general price and healthcare price levels in Singapore between 2011 and 2017. [2]  Similarity (1m): o Both healthcare costs and consumer prices increased between 2011 and 2017.  Difference (1m): o However, healthcare costs rose by a greater extent than consumer prices. Examiner’s comments:  No need to quote numerical values for the percentage changes. If quoted numerical values and the values are incorrect, full credit will not be given.  Many students quoted the absolute change instead of percentage change.  Some students erroneously compared across price indices to wrongly conclude that general prices were higher or lower than healthcare prices.  Some students gave a lengthy description without any explicit comparison. Brevity is the soul of wit, be more succinct.  Some students broke up the time range and provided similari ty and difference based on different periods, but at least one full time range comparison is required.  Some students described the relationships between the two price trends (e.g. positive relationship), but describing the relationship does not directly compare the direction of change.  Students who made explicit comparisons using comparative terminologies , e.g. Both / similarly/ however /in contrast, tend to score better than those who did not. Note the question requirement to ‘compare’. (b) Assess whether making patients pay for different prices for Class A and Class B2 wards (Table 2) is an example of price discrimination. [6]  Definition:  Price discrimination occurs when firms charge different consumers different prices for the same good, for reasons not associated with cost differences.  Thesis:  It is a case of price discrimination because SGH provides two different ward classes for consumers to make their choice based on their different PED. Demand for Class A wards is relatively less price elastic than demand for Class B2 because high-income who self-select into Class A wards spend a smaller proportion of their income on hospital bills