2013_CJC_H1_Econs_P1 Prelim Question Paper with Answers

CATHOLIC JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATIONS In preparation for General Certificate of Education Advanced Level Higher 1 ECONOMICS 8819/01 Paper 1 28 Aug 2013 0800 - 1100 Additional Materials : Writing Paper 3 hours READ THESE INSTRUCTIONS FIRST Write your name, class and question number on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams, graphs or rough working. Do not use highlighters, glue or correction fluid. Begin each question on a new sheet of paper. Section A Answer all questions. Section B Answer one question. At the end of the examination, hand in ALL questions separately. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 8 printed pages.

2 © Catholic Junior College 8819/01/ Preliminary Exams/2013 Section A Answer ALL questions in this section Question 1 Cars and Floods Extract 1: Greater Integration Good for Asean, S'pore: PM Lee Greater integration is the best way to meet growing competition and create new opportunities for Asean. As he pressed for greater Asean economic integration yesterday at the Asean leaders' meeting, Prime Minister Lee Hsien Loong emphasized how Singapore companies also stand to gain from it. "Closer Asean integration will boost Singapore's position as the regional business hub and create new opportunities in HQ services and supply chain management," he said. He also said opening up Asean's services sector will offer a bigger market to Singaporean service companies such as those selling accountancy and medica l services. According to him, getting the Masterplan on Asean Connectivity off the ground will mean potential projects for Singapore companies in the logistics, infrastructure development, information and technology businesses. Asean must work together to become stronger because global competition, especially from China and India, is tough. Mr Lee said that speeding up Asean economic integration is the best way to meet growing competition and create new opportunities for the grouping. Source: The Business Times, 4 April 2012 Extract 2: Thailand Floods Disrupt Supply Chains & Raise Inflationary Risks Moody’s1 slashed Thailand’s GDP growth to 2.8% for the year in light of the heavy floods affecting its seven industrial estates. Automobile manufacturers are at the forefront as they get hit by factory closures, supply chain shortages, labour absences, transport r oadblocks and other flood -related factors. Toyota which trades on the Singapore Exchange, reported that its plants in Thailand were shuttered mainly due to supply delays. The Thai floods have resulted in an output loss of 37,500 vehicles in the country itself since the shut down of its factories. To further compound matters, the production halt at its Thai facilities h