2025 DHS Paper 2

1 Name: Centre/ Index Number: Class: DUNMAN HIGH SCHOOL Preliminary Examination Year 6 Economics (Higher 2) 9570/2 Paper 2 Essay Questions 23 September 2025 2 hours 30 minutes No Additional Materials are required. READ THESE INSTRUCTIONS FIRST 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. An answer booklet will be provided with this question paper. Answer all three essay questions in this booklet. 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. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 3 printed pages including this cover page.

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3 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1. Prices of agricultural goods tend to be volatile, with prices rising sharply in some years, then falling drastically in others. To stabilise farmers’ income, the European Union’s (EU) Common Agricultural Policy (CAP) ensures that prices of agricultural goods do not fall to unsustainably low levels, promotes agricultural goods both within the EU and globally, and allocates funds to support adoption of new technologies to deal with extreme weather. (a) Explain why prices of agricultural goods tend to be volatile. [10] (b) Discuss the appropriateness of measures that can stabilise farmers’ incomes. [15] 2. The level of competition in various markets can change over time due to entry of new firms or consolidation among existing firms. In Singapore, the food and beverage (F&B) industry has experienced increased competition with the entry of many overseas brand s. In contrast, the telecommunications sector may see reduced competition, following news of a proposed sale of M1 to its rival, Simba Telecom. (a) With the aid of examples, explain why the long-run profits of a firm in a market with little or no barriers to entry would differ from a firm in a market with high barriers to entry. [10] (b) Discuss whether increased competition in markets is beneficial for consumers and society. [15] 3. (a)