NJC_2022_H1_Economics_Prelim_P1_Ans

National Junior College Economics Department Preliminary Examination 2022 Paper 1 Answer Booklet (Students’ Version) Senior High 2 H1 Economics (Syllabus 8823)

2022 SH2 H1 Economics Prelim Suggested Answers National Junior College Humanities Department (Economics) 2 Suggested Answer Outline and Examiners’ Comments: Case Study Question 1 (a) Compare the relative change in the retail revenue for Amazon, Walmart and Home Depot in 2010 and 2020. [2] • Similarity: All three firms have seen an increase in their retail revenue between 2010 and 2020. • Difference: However, the rate of increase in the retail revenue for the three firms are different, with Amazon experiencing the largest increase (2,800%), followed by The Home Depot (466%) and Walmart (90%). (b) Using a diagram, explain how the rapid adoption of internet access impact a country’s production possibility curve. [5] • The rapid adoption of internet access worldwide would mean a rapid improvement in technology by firms in the economy as well. This would result in an increase in both the quantity and quality of capital resource in Singapore. • Firms that rely on technology (internet access in their production) will be able to produce more output. • The expansion of Singapore’s production possibility curve can be illustrated by a skewed outward shift of Singapore’s PPC from PPC0 to PPC1 as shown in Fig. 1. • Diagram. Fig 1: Production Possibility Curve (c) Identify and explain the two main characteristics of a public good, and comment on whether these are likely to be possessed by the Wi -Fi services provided by telecommunications firms. [6] Explain • A public good are goods or services that have the features of non-rivalry and non- excludability. • Define non-rivalry: non -rivalry m