2026 ASRJC H2 Econs P2 Prelim QP

1 © ASRJC Economics Department 9570/02/JC2 Prelim /2024 [Turn Over ECONOMICS 9570/02 Paper 2 10 September 2024 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 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. Begin 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 part question. This document consists of 3 printed pages and 1 blank page. ANDERSON SERANGOON JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATION Higher 2

2 © ASRJC Economics Department 9570/02/JC2 Prelim /2024 [Turn Over Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1.Market failure can occur due to imperfect information. For example, buyers know more information about their health problems than insurance providers in the healthcare insurance market while consumers of healthcare services may not be fully aware of the benefits of consuming healthcare services. (a)Explain how the market fails due to imperfect information in the market for healthcare services and the market for healthcare insurance. [10] (b)Discuss the policies that the Singapore government could adopt to ensure that the market for healthcare services operates efficiently. [15] 2.In New York City, economic growth and relaxation of regulations for developers of new rental projects can have different impacts on rent. The government puts in place rent control policies to limit how much rent can increase annually for certain rental properties. (a)Explain the different impacts on housing rents due to economic growth and relaxation of regulations. [10] (b)Discuss whether a rent control policy is the most effective way to address the affordability of housing rents. [15] 3.Pricing regulations are usually used by governments in essential services such as electricity, utilities, and telecommunications to ensure that they are kept affordable. (a)Explain one benefit and one cost of a large firm to society. [10] (b)Discuss whether pricing regulation is the most appropriate way for a government to regulate large firms. [15]

3 © ASRJC Economics Department 9570/02/JC2 Prelim /2024 [Turn Over Section B One or two of your three chosen questions must be from this section. 4.Singapore plans to progressively increase the retirement age to 65 by the year 2030 due to longer life expectancy, a lack of manpower and concerns over fiscal sustainability. (a)Explain why governments want to achieve fiscal sustainability. [10] (b)Discuss whether increasing the retirement age in a country with ageing population is the best policy measure to attain fiscal sustainability. [15] 5.A variety of global events including the strong recovery in global growth, a rally in oil and gas prices and recent geopolitical tensions has led to an increase in Singapore’s rate of inflation. This has spurred the Monetary Authority of Singapore (MAS) to appreciate the Singapore dollar. Source: Channel News Asia, 3 February 2022 (a)Explain how the current global economic developments impact the domestic economy of Singapore. [10] (b)Discuss the most appropriate policy measures the Singapore government can adopt to manage the effects of current global events. [15] 6.Globalisation will make our societies more creative and prosperous, but also more vulnerable. (a)Explain how technological development and globalisation have impacted each other. [10] (b)Discuss whether small economies, like Singapore, have more to gain from globalisation than big economies. [15]

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