NYJC_H1_ECONS_P1_8823_QP

8823/01 H1 Economics Paper 1 1 NANYANG JUNIOR COLLEGE 2018 JC2 Preliminary Exam H1 ECONOMICS Paper No: 8823/01 10 th September 2018 Time : 1400 – 1700 hrs Monday Duration : 3 hours READ THESE INSTRUCTIONS FIRST Do not flip the pages of this paper until you are told to do so. Write your name, class and name of your economics tuto r in the space provided on the writing paper. Answer all questions. The number of marks is gi ven in the brackets at the end of each question. Write your answers on th e writing paper provided. If you use more than one sheet of paper, fasten the sheets together. You are advised to spend several minutes reading through the data and questions before you begin writing your answers. There are _8_ printed pages including this cover page

8823/01 H1 Economics Paper 1 2 Answer all questions Question 1: The Sugar Battle Table 1: Sugar in Selected Economies (1,000 Metric Tons) Countries Production Consumption 2016/17 2017/18 2016/17 2017/18 China 9,300 10,250 15,600 15,700 India 22,200 32,445 25,500 26,500 European Union 18,313 21,150 18,700 18,800 Pakistan 6,825 7,425 5,100 5,400 United States 8,136 8,393 10,979 11,181 World total 173,980 191,813 170,773 174,125 Source: United States Department of Agriculture Extract 1: Tax on sugary drinks will only be partly effective, claims study Three economists at the Institute for Fiscal Studies have raised questions about the efficacy of the government’s soft drinks industry levy. Drinks makers who do not cut sugar levels will have to pay 18p a litre on drinks that have more than 5g of sugar per 100ml and 24p a litre on those that have 8g or more of sugar per 100ml. According to the economists’ modelling, young consumers would lower their sugar consum ption by more than older individuals in response to a soda tax. The tax, therefore, succeeds in achieving relatively large reductions in sugar among one group,” the study notes. However, its impact of sugar tax on population remains to be seen. The findings have implications for Britain and beyond. A growing number of cities and countries have adopted taxes on sugary drinks to help combat sugar consumption, which is blamed for rising obesity levels. Where do we draw the line for taxing undesirable dietary choices? For example, should a salt tax be implemented given that the overall concern is on long-term human health? To what extent do matters of dietary choices require government intervention? Some people might say that when it comes to food choices, they should have complete freedom in making those choices as they are solely responsible for the health cost that they would incur. However, the cost goes beyond personal choices. Source: Various Extract 2: UK sugar industry licks lips over end of EU quotas The European Union