NJC_2022_H1_Economics_Prelim_P1_QP

This document consists of 8 printed pages and 4 blank pages. NATIONAL JUNIOR COLLEGE Economics Department © NJC 2022 8823/01/Aug/22 [Turn over ECONOMICS 8823/01 Paper 1 22 August 2022 3 hours No Additional Materials are required. 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 paper ask the invigilator for a continuation booklet. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. NATIONAL JUNIOR COLLEGE SH2 Preliminary Examinations for General Certificate of Education Advanced Level Higher 1

2 © NJC 2022 8823/01/Aug/22 Answer all questions. Question 1: A winner in the pandemic – Amazon Table 1: Retail revenue of the top ten largest Public Retailers (2010 and 2020) US Retailer Retail Revenue in 2010 (in US$ billion) Retail Revenue in 2020 (in US$ billion) Amazon 50 1,400 Walmart 179 339 The Home Depot 47 267 Costco 24 134 Lowe’s 29 102 Source: visualcapitalist.com, accessed 29 June 2020 Extract 1: E-commerce worldwide Over the last few years, electronic commerce (e-commerce) has become an indispensable part of the global retail framework. The retail landscape has undergone a substantial tran sformation following the advent of the internet, and thanks to the ongoing digitalisation of modern life. As Wireless Fidelity (Wi-Fi) access and internet adoption are rapidly increasing worldwide, the number of digital buyers keeps climbing every year. In 2020, over two billion people purchased goods or services online, and during the same year, e-retail sales surpassed US$4.2 trillion dollars worldwide. Internet users can choose from various online platforms to browse, compare, and purchase the items or services they need. As of 2019, online marketplaces account for the largest share of online purchases worldwide. Leading the global ranking of online retail websites in terms of traffic is Amazon: The Seattle-based e-commerce giant that offers e-retail, computing services, consumer electronics, and digital content registered over 5.2 billion unique visitors in June 2020. In terms of gross merchandise value (GMV), however, Amazon ranks third behind Chinese competitors Taobao and Tmall. Both platforms are operated by the Alibaba Group, the leading online commerce provider in Asia. One of the most visible trends in the world of e -commerce is the unprecedented usage of mobile devices. In 2021, smartphones accounted for almost 70 % of all retail website visits worldwide, although desktop and tablet visits generated higher conversion rates in 2020. As the adoption of mobile devices is progressing at a rapid pace, especially in regions that lack other digital infrastructure