NJC 2025 H2 EC Prelims Paper 1 (QP)

ECONOMICS 9570/01 Paper 1 2 hours 30 minutes No Additional Materials are required. READ THESE INSTRUCTIONS FIRST An answer booklet will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. If you need additional answer paper ask the invigilator for a continuation booklet. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 9 printed pages and 3 blank pages. N ATIONAL J UNIOR C OLLEGE Economics Department © NJC 2025 9570/01/Aug/25

2 Answer all questions. Question 1: Global markets for cocoa and chocolate Extract 1: Small confectioners move away from just selling chocolates as global cocoa shortage hits hard A recent surge in cocoa prices has caused some small confectioneries in Singapore to branch out from simply selling chocolates in order to save costs and increase revenue. These smaller retailers, which have been hit much harder in terms of profit margins compared with larger stores, are now offering experiential services like chocolate-making workshops. The price of cocoa – the base ingredient of chocolate – has skyrocketed over the past one to two years due to a global supply shortage. Its key producers, Ghana and the Ivory Coast, have been hit by climate change and disease outbreaks. Decades of underinvestment in cocoa plantations as well as investor speculation have also driven prices up. Singapore-based artisan chocolatier AnjaliChocolat is one retailer that has switched its business model amid such market challenges. It has a physical store in Tanglin Mall and sells its sweet treats online as well. ‘The recent increase in cocoa prices has been unprecedented and it’s definitely given us a curveball,’ she said. ‘If we were to break even, then we would have to increase our prices by about 30%.’ Another boutique chocolatier, Embrace Chocolate, is paying double the price for raw cocoa beans now compared with the start of the year. Founder Namita Gupta said her shop may have to pass on the cost to consumers by S$0.50 to S$1. ‘If people want to continue eating good chocolate, they might have to pay a little more,’ she said. New cocoa trees take as long as three to four years to produce beans, according to the International Cocoa Organisati