2025 ASRJC H3 Econs Term 3 Timed Practice QP

1 © ASRJC 9809/01/Term 3 Timed Practice/2025 [Turn Over ECONOMICS 9809/01 Paper 1 12 August 2025 2 hours 15 mins 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 s, ask the invigilator for a continuation booklet. Section A Answer all questions. Section B Answer one question. Please start your answer to each question on a fresh page of the answer booklet. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 7 printed pages and 1 blank pages. ANDERSON SERANGOON JUNIOR COLLEGE JC2 TERM 3 TIMED PRACTICE Higher 3

2 © ASRJC 9809/01/Term 3 Timed Practice/2025 [Turn Over Section A Answer all questions from this section.

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6 © ASRJC 9809/01/Term 3 Timed Practice/2025 [Turn Over Questions (a) What are the advantages and disadvantages of the market-based solutions to climate change referred to in the resource materials? [8] (b) The 1997 Kyoto Protocol committed developed countries to making legally binding reductions in CO2 emissions by 2O10. The amounts agreed included reductions from 1990 levels of 6% by Japan, 7% by the USA, and 8% by the EU countries. (i) What progress has been made in meeting these targets? [6] (ii) How should target reductions in emissions be allocated between different countries in any future treaty? [6] (c) Consider the relevance of (i) game theory and (ii) the Coase Theorem to the issues of tackling the problem of climate change. [10]

7 © ASRJC 9809/01/Term 3 Timed Practice/2025 [Turn Over Section B Answer one question from this section. 2. Economic models generally assume that economic agents are rational and seek to maximise their self-interest. Yet in reality, there are boundaries to which individuals and firms make rational and self-interested decisions. Discuss the extent to which decisions that are suboptimal or altruistic invalidate the assumptions of rationality and self-interest. [35] 3. What determines the extent to which established firms can deter the entry of new firms into their industry?