2013_MJC_H2_Econs_P2 QP

9732/02/PRELIMS/JC2/MJC/2013 MERIDIAN JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATION 2013 HIGHER 2 __________________________________________________________________ H2 Economics 9732/02 Paper 2 Essay Questions 23 September 2013 2 Hours 15 Minutes Additional Materials: Writing Paper ___________________________________________________________________ READ THESE INSTRUCTIONS FIRST Do not open this booklet until you are told to do so. Write your name, class and register number in the spaces at the top of the answer sheets. Write in dark blue or black pen. Write your answers on the separate answer paper provided. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. You are reminded of the need for good English and clear presentation in your answers. Section A & B: Essay Questions (2h 15 min) Answer three questions in total, of which one must be from Section A, one from Section B and one from either Section A or Section B. Begin each essay question on a fresh sheet of paper. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part of a question. [Turn Over] This document consists of 3 printed pages and 3 cover pages.

9732/02/PRELIMS/JC2/MJC/2013 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 The price of organic fertilisers for organic crops has been rising. Rising income and healthy living campaigns are encouraging households to switch to consuming organic food. With reference to the above events, assess the relevance of different concepts of elasticities of demand in explaining the effects on expenditure by consumers on organic and non-organic food. [25] 2 (a) Explain how income inequality results in market failure. [10] (b) Assess the extent to which income inequality, rather than any other potential market failure, is the main cause of government intervention in Singapore. [15] 3 Travel agencies charge a lower price for a child’s ticket than an adult’s ticket to fly to the same destination. (a) Explain whether the above pricing policy could be considered to be an example of price discrimination. [12] With increasing competition and advancement in technology, non-online travel agencies should find new ways to remain relevant in the travel industry. (b) Discuss the extent to which the growth of online travel agencies has threatened the survival of non-online travel agencies. [13]

9732/02/PRELIMS/JC2/MJC/2013 Section B One or two of your three chosen questions must be from this section. 4 Ther