AJC_H2_ECONS_P2

ECONOMICS 9732/02 Paper 2 02 September 2014 Additional Materials: Answer Paper 2 hours 15 minutes READ THESE INSTRUCTIONS FIRST Write your name, PDG and index number in the spaces provided 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. 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 your answer to each question on a fresh sheet of writing paper. At the end of the examination, fasten your answers to each question separately. Fasten this cover page in front of the first question attempted. Indicate in the table below the question numbers of the three questions you have attempted. The number of marks is given in brackets [ ] at the end of each question or part question. Question Number Marks Awarded Name: ________________________________ ( ) /25 /25 PDG: ____/13 /25 Total Marks /75 This document consists of 2 printed pages, including this cover page. [Turn over] ANDERSON JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATION 2014 Higher 2

2 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1. From McDonald's burgers in the United States to sugar in Bolivia and chillies in Indonesia, food prices across the globe are soar ing. A 'perfect storm' of bad weather, rapid growth in emerging economies and low interest rates has sent prices for a broad range of farm and non -farm commodities climbing, often at double-digit rates. Source: The Straits Times, February 7, 2011 (a) Account for the sharp rise in the price of food. [10] (b) Discuss whether an increase in the price of food always benefits the producers at the expense of consumers. [15] 2. Economic policies often result in inequity and inefficient allocation of resources. Discuss the view that government intervention results in inefficiency and inequity. [25] 3. Explain what is meant by productive efficiency, allocative efficiency and dynamic efficiency and discuss the extent to which the openness of an economy makes a firm more efficient. [25] Section B One or two of your three chosen questions must be from this section. 4. An already sluggish global recovery shows signs of further weakness, mainly because of continuing financial problems in Europe and slower-than-expected growth in emerging economies. Source: International Monetary Fund, Survey Magazine, Ju