2025 ASRJC Paper 1

1 © ASRJC Economics Department 9570 / JC2 Prelim / 2025 [Turn Over ECONOMICS 9570/01 Paper 1 20 August 2025 Additional Materials: Answer Booklet 2 hours 30 minutes 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 booklet, 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 8 printed pages and 4 blank pages. ANDERSON SERANGOON JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATION Higher 2

2 © ASRJC Economics Department 9570 / JC2 Prelim / 2025 [Turn Over Answer all questions. Question 1: The travel industry: A dilemma for the government Table 1: Air fare and passenger airline revenue Year Average air fare ($) Passenger airline revenue as a percentage of operating revenue (%) 2018 359 74.0 2019 357 73.8 2020 261 63.7 2021 327 58.5 Source: Bureau of Transportation Statistics, US Department of Transportation, April 2025 Table 2: Estimated income elasticities of passenger demand Countries Short haul flights Very long-haul flights Developed 1.3 2.2 Developing 1.8 2.5 Source: Travel Ready.Org. accessed 4 August 2025 Extract 1: The world’s most disappointing tourist attractions: what travel guides don’t always tell you When people dream of travel, they often imagine magical moments, perfect -picture scenery, and unforgettable experiences. But sometimes, reality doesn’t match expectations. While certain destinations are promoted worldwide as must -see attractions, many trav elers leave feeling underwhelmed, disappointed, or even frustrated. Whether due to overcrowding, commercialisation, inflated prices, or lack of authenticity, some of the most famous tourist spots around the globe fail to live up to the hype. Times Square in New York City is a classic example. Featured in countless movies and ads, it’s marketed as the heart of the Big Apple. But for many, the experience is more overwhelming than inspiring. It’s often crowded to the point of discomfort, noisy, a nd filled with aggressive street performers and overpriced stores. Visitors expecting a glamorous cultural hub often find themselves dodging costumed mascots and struggling to enjoy the surroundings. Travel is as much about expectation management as it is about destination choice. The disappointment doesn’t always lie in the site itself, but in the gap between what’s promised and what’s delivered. Social media plays a large role in shaping unrealistic visions of travel, where every moment seems magical and every destination flawless. Source: https://vocal.media/wander, April 2025

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