CJC 2024 A-level CSQ1 ANS

1 Suggested answer to 2024 A Level H1 Paper 1 CSQ 1 (a) With reference to Extract 1, identify one normative statement. [1] Normative statement is a value judgement and cannot be verified. [1m] An example of normative statement in Extract 1 is “Governments should be responsible for ensuring the air we breathe is pollution free” Or “Singapore and London are adopting innovative approaches to reducing the emissions caused by road traffic.” Note: definition of normative statement is not required. (b) Using Figure 1, compare the forecast data on global new BEC and ICC sales for the period 2020-2050. [3] • Global new BEC sales is forecasted to rise between 2020-2050 whereas global new ICC sales is forecasted to fall in the same period. • However, the change in both global BEC and ICC new sales are forecasted to be at generally increasing rate between 2025 – 2038. • However, in 2040, global new BEC sales is forecasted to fall whereas global new ICC sales is forecasted to increase. • Both global new BEC and ICC sales are forecasted to increase in 2021-2025 • But the increase in new BEC sales is forecasted to be consistent throughout 2021-2024 whereas the new ICC sales is forecasted to fluctuate upwards in 2021-2024. Note: any 3 of the above points, but at least 1 point must be on similarity in the two trends. 1 mark for each point (c) Extract 2 states 'With ongoing delays in the availability of ships and shipping containers at a time of economic recovery and rising demand for shipping services ... ' Using a supply and demand diagram, explain the impact of these events in the market for shipping containers. [6] Due to pandemic-related delays, longer times are required for loading and unloading shipping containers. These delays at the ports mean that there will be less ships available at other ports around the world, hence reducing the supply of shipping around the world. Hence the leftward shift of the supply curve from S1 to S2. At the same time, global economic recovery mentioned in Extract 2 means that there is positive global economic growth, causing an increase in demand for goods and resources globally . Shipping services have derived demand for the transport of goods and resources between countries around the world. Hence the increase in global demand for goods and services leads to increase in demand for shipping, shifting demand curve to the right from D1 to D2. Quantity of shipping Price of shipping Q0 D0 S0 S1 D1 Q1 Qd Qs 0 P1 P0

2 The diagram above shows the market for shipping. Initially the equilibrium price is at P0, and equilibrium quantity is at Q0. The fall in supply from S0 to S1 and increase in demand from D0 to D1 leads to a shortage of QdQs at initial price Q0, causing upward pressure on price. This causes quantity demanded to increase and quantity supply to decrease according to the laws of demand and supply respectively as price continue to increase until a higher new equilibrium price is reached at P1. Extract 2 mentions that at its peak the price of shipping increase d by more than seven times higher than the pre-pandemic shipping prices. However, the effect on equilibrium quantity of shipping is indeterminate. Whether equilibrium quantity increases or decreases depends on the relative magnitudes of the increase in demand and decrease in supply of shipping. 1m – demand factor with explanation & reference to extract 1m- supply factor with explanation & reference to extract 1m – diagram with reference 1m – price adjustment process 1m – effect on equilibrium pr 1m – state that effect on equilibrium quantity depends on relative magnitudes of the increase in demand and decrease in supply (d) With reference to Extract 3, explain the potential impact on the standard of living of two unintended consequences of the decision to burn fossil fuels. [6] Unintended consequences are unanticipated costs or benefits that arise from making a decision. As mentioned in Ext 3, many of the world’s poorest people rely on ocean fishing as source of food and income, the decision to burn fossil fuels would have the unintended consequences of worsening both material and non-material Standard of living. Unintended Consequence 1: Reduced global fish populations [3m] According to Ext 3, burning fossil fuels creates greenhouse gases which reduces marine microbes in the oceans, a “key feature of the food chain for fish”. This could reduce world fish populations. With decreased supply of fish leading to higher fish prices, consumers face higher food expenditures and less purchasing power for other goods and services , decreasing consumers’ material standard of living. Ext 3 states that an estimated “59.5 million people globally were employed in catching fish in the oceans or in fish farming”. Workers in the fishing industry may see lower incomes due to decreased fish stock, which decreases their ability to afford goods and services and their material standard of living. Unemployment can result in stress and depression as well as a rise in social crimes, decreasing workers’ quality of life and thus their non-material standard of living. Unintended Consequence 2: Worsened climate change [3m] According to Ext 3, burning fossil fuels also worsens climate change which could cause extreme weather changes. This threat, if persistent, could adversely affect global supply chains and weaken consumer and investor confidence in the long run. These could dampen economic growth and worsen cost-push inflation, decreasing household incomes and purchasing power to afford goods and services and consequently their material standard of living. Extreme weather changes can also displace families and cause physical damage to individuals. This decreases their quality of life and thus their non-material standard of living. Mark Scheme Identify unintended consequence of reduced global fish populations – 1m Explain effect of reduced global fish populations on material SOL – 1m

3 Explain effect of reduced global fish populations on non-material SOL – 1m Identify unintended consequence of worsened climate change – 1m Explain effect of worsened climate change on material SOL – 1m Explain effect of worsened climate change on non-material SOL – 1m (e) With reference to Extract 1, explain how price elasticity of demand (PED) might be used to estimate the effect on traffic levels of a further increase in the price of congestion and comment on whether PED is the only factor affecting traffic levels when su ch prices change. [6] Explanation [4m] Price elasticity of demand (PED) measures the degree of responsiveness of a change in quantity demanded of a good to a change in its price, ceteris paribus. PED may be used to estimate the effect of a further increase in price of congestion such as Singapore’s ERP and UK’s London Congestion Charge on traffic levels. Referring to the above diagram, further increase in congestion charge will shift supply curve to the left from S 0 to S tax. If PED for road usage by private vehicles is elastic (Delastic), further increase in price of congestion such as $1 increase at peak time will lead to a more than proportionate fall in quantity demanded for road usage from Qo to Qelastic, hence reducing traffic levels during peak times. Singapore’s demand for private vehicles is likely to be price elastic due to availability of substitu tes such as taking alternative routes, or travelling outside ERP operation hours or simply taking public transport as mentioned in Ext. 1. On the other hand, if demand is price inelastic (Demand curve D inelastic in the above diagram), further increase in tax will shift supply curve to the left, causing large increase in price from P 0 to Pinela