DHS_H2_ECONS_P2(with Mark Scheme)

© DHS 2015 1   Name: Index Number: Class: DUNMAN HIGH SCHOOL Preliminary Examination Year 6 Economics 9732/2 Paper 2 Essay Questions 14 September 2015 2 hours 15 minutes Additional Materials: Writing Papers READ THESE INSTRUCTIONS FIRST Write your name and Civics Class in the spaces provided on the answer paper. 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. Write your answers on the separate writing paper provided. 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. The number of marks is given in brackets [ ] at the end of each question or part question. At the end of the examination, fasten all your work securely into three separate bundles, one for each question. Please indicate all questions attempted in the boxes below. Section A Section B Q1 Q2 Q3 Q4 Q5 Q6 This document consists of 3 printed pages including this cover page. [Turn over

© DHS 2015 2   Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1. The US economy has reported economic growth and falling unemployment. Weather conditions have improved in Texas, the top US producing state of cotton. Meanwhile, more consumers have opted for synthetic fibre apparel over cotton apparel due to increased quality and comfort of synthetic fibres. Using economic analysis, discuss the effe cts of these events on the U.S. cotton market and its related markets. [25] 2. The increase in foreign worker levy by the Singapore government has led to higher unit labour cost. (a) Explain how the above measure could affe ct the survival of firms in different m a r k e t s t r u c t u r e s . [ 1 0 ] (b) Discuss whether firms in the real world set prices at profit-maximising level. [ 1 5 ] 3. With reference to examples, discuss whether there is a need to change the current policies adopted by the Singapore government to achieve efficiency. [25]

© DHS 2015 3   Section B One or two of your three chosen questions must be from this section. 4. Balance of payments serves to highlight a country's competitive strengths and weaknesses. Assess the extent to which an improvement in the living standards of an economy requires that achieving a healthy bal ance of payments be the top economic p r i o r i t y . [ 2 5 ] 5. UK is in battle over stagflation. Growth has slowed due to its austerity measures and the European debt crisis , while unemployment and oil prices have risen. Economists consider stagflation particularly tough to battle. (a) Explain the key causes of stagflation in UK. [10] (b) Disc