DHS_2008 Prelim - H2 Econs Paper 1

DUNMAN HIGH SCHOOL Year 6 Preliminary Examinations 2008 ECONOMICS 9732/1 Higher 2 Paper 1 Case Study 18 September 2008 2 hours 15 minutes Additional Materials: Paper READ THESE INSTRUCTIONS FIRST W rite your name and class on all the work you hand in. W rite in dark blue or black pen on both sides of the paper. Y ou may use a soft pencil for diagrams, graphs or rough working. Answer ALL questions 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 with the cover page given. Fill in the necessary information on the cover page. You are reminded of the need for good English and clear presentation in your answers. This document consists of 7 printed pages. DUNMAN HIGH SCHOOL Humanities Department (Senior High Section) [Turn Over © DHS 2008

2 Question 1: Land Transport Policies in Singapore and the UK Extract 1: FY2002 Budget Speech – Motor Vehicle Taxes Fiscal disincentives have been a very effect ive means of controlling car ownership and usage in Singapore. They have kept our roads smoo th-flowing and congestion free. However, our current vehicle taxes are excessively skewed towards ownership costs rather than usage charges. High ownership cost is a blunt tool for controlling traffic congestion and has distorted us age patterns by encouraging car owners to drive frequently, since the car has already been paid for. The Government aims to strike a better balance between the owner ship and usage costs of a car. The additional registration fee, excise duty and road tax which are payable regardless whether or not the car is actually used will be lowered. Car Park charges will be revised to ensure proper costing in l and-scarce Singapore. The Electronic Road Pricing (ERP) system will also be expanded to keep our roads free flowing. More Certificates of Entitlement (COE) will be issued if the ER P system proved effective in managing congestion. Source: Adapted, MOF Website Figure 1: Cost of Motoring for a Typical Medium-Sized Car Source: Land Transport Authority, Statistics in Brief 2005 Extract 2: Off the Road onto Rail The ERP system was launched in April 1998 to replace the former Area licensing Scheme that was introduced in the Restri cted Zone in 1975, and the manual Road Pricing Scheme that was im plemented on major expressways in the 1990s. The Land Transport Authority undoubtedly has refined the ERP system to a science after a decade of data evaluati on and tinkering with ch arges, operating hours and studying which new problem roads require gantries to be planted on. What these standardised processes cannot measure is the Singaporean motorist's mindset: the entrenched thinking that cars bought at great cost should be used to the maximum. Success is not to be measured solely by improved journey speeds, but al