TPJC_H1_ Economics

TPJC / Economics / 2008 Preliminary Examination / H1 1 TAMPINES JUNIOR COLLEGE Preliminary Examination 2008 ECONOMICS 8816/01 Higher 1 Monday 18 Aug 2008 13 30 – 16 30 (3 hours) INSTRUCTIONS TO CANDIDATES Section A (Case Study) Answer all questions Section B (Essay) Answer any one question Write your name and civics class in the spaces provided on the answer paper. Write your answers on the separate answer paper provided. If you use more than one sheet of paper, fasten the sheets together. Write the question numbers of the questions you have attempted on the cover sheet. INFORMATION FOR CANDIDATES The number of marks is given in brackets [ ] at the end of each question or part question. You are reminded of the need for good English and clear presentation in your answers. For Section B, you may answer with reference to your own economy or other economies you have studied where relevant to the question. This question paper consists of 10 printed pages.

TPJC / Economics / 2008 Preliminary Examination / H1 2 Section A Answer all questions in this section Question 1 Sustainable Energy Policy Extract 1: When discoveries of new reserves fall short of demand – which may be the case in just a few years for oil, and slightly later for natural gas – energy prices will climb significantly. Owing to the gradual depletion of oil and gas reserves and the need to reduce the environmental problems of energy consumption, the energy mix of the future will contain a far lower proportion of fossil energy (oil and natural gas) than it does today. Source: Deutsche Bank Research (2004) Figure 1: Source: New York Times (2008) Extract 2: Most of the Latin American countries with sizeable oil resources engage to some extent in exporting them, notably towards North America and Europe. However, the large emerging economies such as China & India are already representing an important market for energy resources from the region and are likely to increase further in importance. Conversely, for countries such as China, India or South Africa, the Latin American region represents a diversification away from their established supplier countries. Source: Deutsche Bank Research (2007) Figure 2: Net oil export in 2006 – Latin America (million barrels per day)

TPJC / Economics / 2008 Preliminary Examination / H1 3 Extract 3: Biofuels Biofuels are any kind of fuel made from living things, or from the waste they produce. In recent years, the term "biofuel" has come to mean the last category - ethanol and diesel, made from crops including corn, sugarcane and rapeseed. In principle, biofuels are a way of reducing greenhouse gas emissions compared to conventional fossil fuels. Burning the fuels releases carbon dioxide; but growing the plants absorbs a comparable amount of the gas from the atmo