2025 H2 Economics Timed Practice Paper 2 (DHS)

Name: Centre/ Index Number: Class: DUNMAN HIGH SCHOOL Term 3 Timed Practice Year 6 Economics (Higher 2) 9570/2 Paper 2 Essay Questions 30 June 2025 2 hours 30 minutes 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. You should use your own writing paper. Begin each essay question on a fresh piece of paper, and staple your papers together according to the essay question your answer addresses. 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. [Turn over 1

Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1. Due to a severe chicken shortage in Malaysia, the Malaysian government is implementing a ban on chicken exports to other countries including Singapore from 1 June 2022. The Malaysian government currently also caps the retail price of chicken at RM8.90 per kg as it is a widely consumed source of protein in Malaysia. Adapted from The Straits Times, May 2022 (a) Explain the impact of Malaysia’s chicken export ban on the welfare of consumers of fresh chicken and the welfare of producers of other meats such as beef in Singapore. [10] (b) Discuss whether the Malaysian government should continue with the price cap or use another policy to ensure that prices of essential food items remain affordable. [15] 2. In the ride hailing industry, Grab became the dominant ride-hailing service provider in Singapore after Uber's exit from the market. Even with the entry of new players like Gojek and Tada, Grab's pricing power is significant. (a) Explain, with the use of examples, why firms in oligopolistic markets in reality may not set prices at profit-maximising level. [10] (b) Discuss whether reducing barriers to entry or regulating prices of firms leads to a more desirable outcome for society. [15] 3. The market for healthcare may not achieve an efficient allocation of resources when there are information failures, especially asymmetric information in the healthcare insurance market. To help cope with rising healthcare costs, Singapore government has instituted Medishield Life, a basic health insurance plan that protects all Singapore Citizens and Permanent Residents against large hospital bills for life, regardless of age or health conditions. (a) Explain how two different types of information failure could