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1 ST. ANDREW’S JUNIOR COLLEGE PRELIMINARY EXAMINATIONS – 2017 (JC2) General Certificate of Education Advanced Level Higher 1 ECONOMICS 8819/01 28 August 2017 Paper 1 3 hours Additional Materials: Answer paper READ THESE INSTRUCTIONS FIRST Write your name and 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 any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Section A Answer all questions. Section B Answer one question. At the end of the examination, fasten your answers for each question 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. © SAJC 2017 [Turn Over]

2 Section A Answer all questions Question 1 Global Food Market and Potato Problems Table 1: Food and Agriculture Organization (FAO) Food Price Index (2002 - 2004 = 100) Year 2011 2012 2013 2014 2015 Index 230 215 212 207 179 The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five com modity group price indices, weighted with the avera ge export shares of each of the groups for 2002-2004. Source : Food and Agriculture Organization of the United Nations, 2015 Extract 1: Global Food market Cheap oil contributed to abundant global supplies of food in 2014 and prospects of a bumper crop for wheat, maize, potatoes and rice in 2015—fa ctors that are driving the sharp decline in international food prices. The agriculture and f ood sector continue to benefit from less expensive chemical fertilizer, fuel and transportation costs brought on by the previous year’s oil price declines. Falling oil prices have also affected the demand for biofuels, made from crops like maize and potatoes, while the developments in rice support policies for the needy are other factors that could impact food prices. However, unexpected domes tic food price fluctuations remain a possibility so it is crucial that countries are pre pared to address dangerous food price hikes when and if they unfold. Source : World Bank, 1 July 2015 Extract 2: Potatoes facts around the world The potato has risen to become the third most important food crop in the world after rice and wheat in terms of human consumption, with fewer alt ernative food crops available. More than a billion people worldwide eat potato, and glo bal total crop production exceeds 300 million metric tons. It is a major food crop that is grown in over 100 c ountries across the world. China, Russia, India, the United States and Ukraine are the larges t producers of potatoes. Although many