2013_RI_H1_Econs_Preliminary Examination

8819/01/Prelim/Yr6/13 © RI 2013 [Turn over RAFFLES INSTITUTION 2013 YEAR 6 PRELIMINARY EXAMINATION Higher 1 ECONOMICS 8819/01 Paper 1 4 September 2013 3 hours Additional Materials: Answer Paper READ THESE INSTRUCTIONS FIRST Write your name, index number and CT class 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 diagrams, graphs or rough working. Do not use paper clips, highlighters, glue or correction fluid. Section A Answer all questions Section B Answer one out of two questions At the end of the examination, - Fasten Case Study 1 & 2 together with this cover sheet - Indicate and fasten Essay question separately. This document consists of 12 printed pages and 2 blank pages. Question No. Marks 1 /30 2 /30 Raffles Institution Nurturing the Thinker, Leader & Pioneer Name : ________________________ Civics Class : ________________________ Economics Tutor : ________________________

8819/01/Prelim/Yr6/13 2 © RI 2013 [Turn over BLANK PAGE

8819/01/Prelim/Yr6/13 3 © RI 2013 [Turn over Section A Answer all questions. Question 1 Education Table 1: Government expenditure per student (% of GDP per capita), Singapore Source: The World Bank Table 2: Government expenditure per student (% of GDP per capita), USA 2008 2009 2010 Tertiary student 21.2 19.61 21.7 Primary student 22.5 22.6 22.9 Source: The World Bank Table 3: Participation in Publicly Funded University Education, Singapore 2005 2006 2007 2008 % of Primary One cohort who were admitted to universities 23.7 23.8 23.8 24.8 Source: Ministry of Education, 2004 Figure 1: Monthly Wage Profiles of Workers by Educational Attainment, Singapore 2008 2009 2010 Tertiary student 28.9 29.8 30.8 Primary student 9.6 11.5 12.3 Monthly wages (S$ thousand) Years of work experience Tertiary Primary 7 6 5 4 3 2 1 0-10 11-20 21-30 31-40 41-50 Source: Monetary Authority of Singapore, 2004

8819/01/Prelim/Yr6/13 4 © RI 2013 [Turn over Table 4: Selected Economic Data, Singapore and USA 2012 Economic data Singapore USA Unemployment rate 1.9% 8.1% Adult literacy rate* 92.5% 99% Gini coefficient** 0.414 0.378 GDP per capita (at 2012 PPP$) $61,803 $49,965 * % of total population aged 15 and above able to read and write. ** ‘1’ represents complete inequality in income distribution while ‘0’ represents perfect equality. Source: Various Extract 1: Higher Education in Singapore In providing university education, Singapore’s policy has always been to establish a more equitable and sustainable cost sharing formula between the state and the students. This would better reflect the balance between private and external benefits generated by university education. Currently, the government funds about 75% o