2022 H2 Economics EOY P2 QP.docx

Class Adm No Candidate Name: 2022 Preliminary ExamsPre-university 3 ECONOMICS 9757/02 Paper 2 Essays 14 September 20222 hours 15 minutesAdditional Materials: Answer Booklet 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 or graphs.Do not use staples, paper clips, highlighters, glue or correction fluid. Answer threequestionsintotal,ofwhichonemustbefromSectionA,onefromSectionBandonefromeitherSection A or Section B. You are reminded of the need for clear presentation in your answers. Ananswer booklet will beprovidedwiththisquestionpaper. Youshouldfollowtheinstructionsonthefront cover of theanswer booklet. If youneedadditional paper, asktheinvigilator for acontinuation booklet. The number of marks is given in brackets [ ] at the end of each question or part question. This question paper consists of3printed pages and1blank page. [Turn over

2 Answerthreequestions in total. Section A Oneortwoof your three chosen questions must befrom this section. 1. When Malaysia announced it will ban exports of fresh chicken fromJune 1 st givendomestic shortages, Singapore felt a sense of unease given that chicken is acommoningredient inSingaporecuisine.Manypeoplebegantostockuponchicken.About 34 per cent of our chicken imports come from Malaysia. Source: CNA, 12 June 2022 (a) Explain howthe export ban will lead to shortages and a sharp riseinpricesoffresh chicken in Singapore. [10] (b) Assessthestrategiesthat theSingaporegovernment couldadopt inresponsetoMalaysia’s export ban of fresh chicken. [15] 2. Global military expenditure has surpassed $2 trillion per year for thefirst time, andlooks set to rise further as European countries beef up their armed forces inresponse to Russia’s invasion of Ukraine. Closer to home, theannual spendingbythe Singapore government on early childhood education sector is set to double. (a) Explain why price signals will not lead to efficient allocation of resources fornational defence and education. [10] (b) Discusstheextent towhichgovernment policiescanaddresstheabovesourcesof market failure. [15] 3. ChinahasjoinedEuropeandUSincurbingthepower ofbigtechnologycompanies.Chinahasincreasedscrutinyonthetechnologysectorandintroducedaslewofnewregulations that has tried to rein in the power of its domestic giants like AlibabaGroup Holding Ltd and Tencent Holdings Ltd. Source: CNBC, 17 May 2021 (a) Explainthemarket structurethat thetechnologycompaniesareinandhowitwillaffect their pricing and output decisions. [10] (b) Discusstheextent towhichconsumersandthesocietywill benefitwhenthereisgreater competition in the technology industry in China. [15] MI/9757/02/PU3/EOY2022

3 Section B Oneortwoof your three chosen questions must befrom this section. 4. All governments aimto achieve economic growth, reduceunemployment andkeepprices stable. (a) Explain some challenges faced by the economy when the government fails