RI Y5 H2 Promotion Examination - Paper 1 2019

9757/01/Promo/Y5/19 © RI 2019 [Turn over RAFFLES INSTITUTION 2019 YEAR 5 PROMOTION EXAMINATION Higher 2 ECONOMICS 9757/01 Paper 1 Case Study 26 September 2019 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. Name: ______________________ Civics Class: ________________ Question Marks Economics Tutor: ____________ 1 /30 This document consists of 5 printed pages and 1 blank page.

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3 9757/01/Promo/Y5/19 © RI 2019 [Turn over Question 1: Healthcare in Singapore Table 1: Prices in Singapore Consumer Price Index 2011 2012 2013 2014 2015 2016 2017 All Items 92.5 96.7 99.0 100.0 99.5 98.9 99.5 Healthcare 89.8 93.7 97.3 100.0 99.9 101.0 103.5 Source: Singapore Yearbook of Statistics 2018 Extract 1: Supplier -induced Demand in Healthcare Consumption There is growing evidence that much of the demand in medical care could be generated by hospitals and doctors pressuring patients to opt for unnecessary medical care for certain diseases – a phenomenon known as “supplier -induced demand”, which can result in the overconsumption of healthcare. Consumers are typically reliant on expert opinion of their providers since they are often unable to appropriately decide on the amount an d level of medical care. Current doctors’ compensation models are not helpful. In this already cost -escalating environment, doctors in Singapore are largely paid on a “fee -for-service” model where the more tests, the more procedures, and the more medicine a doctor orders, the higher his income at the end of the month. Unless health care providers are subjected to the audit of an effective watchdog body or a system of checks and balances, it is almost inevitable that they could induce increasing consumption and even result in unnecessary spending. In Singapore, the government restricts subsidies to “essential and cost -effective medical treatment of proven value” but insurers are by and large nonchalant. Adapted from : Today, 8 Jan 2013 Extract 2: Paying for Healthcare in Singapore The Singapore government heavily subsidises basic medical services for citizens at public hospitals and polyclinics. However, patients are still required to pay part of the cost of medical services which they use (co-payments). Individuals are also encouraged under the 3M (Medisave, Medishield Life and Medifund) framework to take responsibility for their own health by saving for medical expenses: - Medisave is a national compuls