RI 2024 H2 Y6 Common Test - Examiner's Report - Final

ECONOMICS Higher 2 Syllabus 9570 Examiner’s Report Year 6 Timed Practice 2024 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

Y6/9570/TP/2024 2 © RI 2024 [Turn Over ECONOMICS Y6 H2 Common Test 2024 Paper 9570/02 Paper 1 & 2 Suggested answers (a) Using Figure 1, compare the trends of population and water demand in Singapore. [2] • From 1960 to 2030, there was an increase in both the population and water demand in Singapore. • However, the extent of increase in water demand was greater / faster compared to the extent of increase in population. Mark Scheme • 1m for similarity and 1m for difference. Examiner’s Comments • This question was generally not as well done as expected. This was mainly due to many students doing an absolute comparison of population and water demand, e.g., stating that water demand exceeded population in a certain year. This is incorrect, as these t wo pieces of data are not comparable, as both are of different units. Hence the second mark for the difference was not awarded. • Another reason why the full marks were not awarded was the lack of a comparative term such as “however”, “but”, or “while”. (b) Explain why PUB pegs the price of water to the “marginal cost of producing and supplying the next drop of water” as mentioned in Extract 3. [2] • The reason is because PUB aims to achieve allocative efficiency. [intention] • By using this pricing approach, the value that society places on the last unit of water produced (i.e. the price) is equal to the opportunity cost of producing it (i.e. MC), thus maximising social welfare. [how it is obtained] Mark Scheme • 1m for explaining the intention and 1m for explaining how AE is attained. Examiner’s Comments • Most candidates understood the purpose of PUB’s policy. Most were able to identify that doing so was for the purpose of achieving allocative efficiency, but the quality of explanation was missing. Most candidates that did not obtain the second mark was due to very vague explanations. A common incomplete answer was recognising how allocative efficiency is attained but did not explain that the price represented society’s valuation of the last unit of water.

Y6/9570/TP/2024 3 © RI 2024 [Turn Over (c) With the aid of a diagram, explain how the “sewage spills into rivers and coastal waters” (Extract 1) affects social welfare in UK. [5] • Sewage spills into rivers and coastal waters are considered a negative production externality in the market for water. • This is because of neglect or poor maintenance of the water pipes that resulted in wastewater spilling out into water bodies. This is supported in Extract 1 as the day job of maintaining the assets has been done very badly in some cases. • The 3