2025 NJC P2 Prelims H2 Econs

This document consists of 3 printed page and 1 blank page. NATIONAL JUNIOR COLLEGE Economics Department © NJC 2025 9570/02/Aug/25 ECONOMICS 9570/02 Paper 2 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 three questions in total, of which one must be from Section A, one from Section B and one from either Section A or Section B. The number of marks is given in brackets [ ] at the end of each question or part question. NATIONAL JUNIOR COLLEGE SH2 Preliminary Examination for General Certificate of Education Advanced Level Higher 2 Full name :______________________ Economics subject class :_2ec2_________________

2 © NJC 2025 9570/02/Aug/25 Section A One or two of your three chosen questions must be from this section. 1 In February 2024, Health Minister Ong Ye Kung announced that about 29,000 nurses are set to receive up to $100,000 in payouts under a new long -term retention scheme for nurses working in the public healthcare system. However, the shortage of nurses in Singapore is set to remain, due to insufficient work-life balance for healthcare workers and an ageing society. Source: The Straits Times, February 2024 (a) Explain why there is a shortage of nurses in Singapore and why a surge in their wages is needed. [10] (b) Discuss possible measures that could alleviate the surge of nurses’ wages in Singapore. [15] 2 Air India announced its merger with smaller rival airline Vistara in 2022. India is the fastest growing global economy, and demand for air travel is surging with passenger traffic expected to more than double over the next 10 years. The combination of Air India and Vistara would bring significant synergies. Another strategy to increase profits would be price discrimination. (a) Explain why a profit-maximising firm’s decision to shut down or expand its output in the short run depends on its costs and revenue. [10] (b) Discuss whether merger or price discrimination is the more appropriate strategy for an airline firm to increase its profits. [15] 3 The use of public transport is often regarded as sustainable travel as it helps reduce traffic congestion and air pollution. While the public transport in Singapore is rel