2013_CJC_H2_Econs_P1 Prelim Question Paper with Answers

CATHOLIC JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATIONS In preparation for General Certificate of Education Advanced Level Higher 2 ECONOMICS 9732/01 Paper 1 28 Aug 2013 0800 - 1015 Additional Materials : Writing Paper 2 hours 15 min READ THESE INSTRUCTIONS FIRST Write your name, class and question number 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 highlighters, glue or correction fluid. Begin each question on a new sheet of paper. Answer ALL questions. At the end of the examination, hand in ALL questions separately. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 7 printed pages and 1 blank page.

2 © Catholic Junior College 9732/01/Preliminary Exams /2013 Answer ALL questions in this section Question 1 Rare Earths Extract 1: China’s dominance of rare earths According to market research reports, there is a growing global dependence upon a multitude of diverse technologies — including computers, smart phones, TVs, lighting systems, hybrid automobiles, life -saving medical technologies, offshore wind turbines and laser -guided missile defense systems – due to the central role telecommunication and high -tech electronic products play in our lives today. China produces more than 95 per cent of the metals that are important for the manufacture of a variety of consumer electronics, such as mobile phones, as well as automotive, advanced medical and defence products. Since 2009, the country has been reducing sales of these metals overseas. Last month, Japan, the US and the European Union lodged a complaint with the World Trade Organisation over China's restrictions on the export of a variety of raw materials including rare earths. For its part, Beijing has cited concerns such as the exposure of miners to cancer -causing chemicals as some of the key reasons for tidying up its rare-earth sector and capping exports. While environmental protection is a valid reason, research analysts questioned if Beijing's reduction of export quota is truly motivated by green concerns. Analyst reports indicate that the production quota has been on a rise while the export quota has been in the downward trend. Adapted from: The Straits Times, 14 April 2012, Extract 2: New trade dispute with China over rare-earth curbs The United States, European Union, (EU) and Japan are accusing Beijing of maintaining export restrictions on them that distort prices and hurt job creation. China vowed to def end itself against the complaint, which was filed with the World Trade Organisation (WTO) in Geneva yesterday. It is arguing that the restrictions were not protectionist but are meant to help prevent environmental damage from excessive mining of the rare metals. The