DHS_2008 Prelim - H2 Econs Paper 2

DUNMAN HIGH SCHOOL Year 6 Preliminary Examinations 2008 ECONOMICS 9732/2 Higher 2 Paper 2 Essay 17 September 2008 2 hours 15 minutes Additional Materials: Paper READ THESE INSTRUCTIONS FIRST W rite your name and subject 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 three questions in total, of which one must be from Section A, one from Section B, ion A or Section B. and one from either Sect 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 and write the essay question numbers that you have chosen. You are reminded of the need for good English and clear presentation in your answers. This document consists of 3 printed pages. DUNMAN HIGH SCHOOL Humanities Department (Senior High Section) [Turn Over © DHS 2008

2 Section A One or two of your three chosen questions must be from this section. 1. Discuss whether it is possible to achiev e efficiency in resource allocation in a free market without government intervention. [25] 2. ‘Global sales of environmentally friend lier cars such as the hybrid-engine cars (which are powered by petrol as well as electricity) and CNG-fitted cars (which are powered by compressed natural gas) have soared in recent months amid weaker demand for petrol-engine cars.’ Adapted from The Straits Times, 8 Jun 08 a) Using demand and supply analysis, explai n why the sales of alternative fuel cars have increased in recent months. [10] b) With reference to relevant elasticity concepts, discuss the impact of the booming alternative fuel car market on its car distributors. [15] 3a) Differentiate between the key features of the economic models of monopolistic competition and oligopoly, illustrating your answers with examples. [8] 3b) Discuss whether the survival of firms in these two models is solely dependent on their competitive strategies. [17] © DHS 2008 9732/17th Sept 2008

3 © DHS 2008 9732/17th Sept 2008 Section B One or two of your three chosen questions must be from this section. 4. Despite sporting a first-world GDP per capita of US$29,000 -- second only to Japan in Asia -- Singapore has an income inequality profile mo re in line with third-world countries. The Straits Times, 12 Nov 2007 a) Explain how Singapore su stains its high economic growth over the years to achieve its first-world GDP per capita. [10] b) Discuss whether economic growth should always be the top pr iority goal of a government. [15] 5. Singapore's unemployment rate rose to 2.3 per cent in the second quarter after seasonal adjustments amid econ