JJC_H2 Prelims P1 Qus

JURONG JUNIOR COLLEGE PRELIMINARY EXAMINATION 2008 ECONOMICS 9732/01 Higher 2 13 August 2008 Paper 1 2 hours 15 minutes Additional Material: Writing Paper / Cover Page READ THESE INSTRUCTIONS FIRST Write your name and class on all the work you hand in. Write in dark blue or black pen. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters or glue. Answer all questions. At the end of the test, place the cover page on top of your answer scripts and fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. JJ Economics This document consists of 7 printed pages. [Turn over

Question 1 Unfolding Power Play Extract 1: GM launches its last-chance saloon in family car market The biggest test of General Motor’s ability to regain the loyalty of North American car buyers has begun to unfold at dealerships across the US and Canada with the arrival of the 2008 Chevrolet Malibu family saloon. The history of the Malibu epitomizes how GM and the other two Detroit-based carmakers, Ford Motor and Chrysler, have ceded control of the huge family car market to their foreign rivals, notably Toyota and Honda. After producing the Malibu from 1964 to 1983, GM dropped the name, only to bring it back 14 years later. But the revived Malibu, with its bland styling and cheap-looking interior, failed to staunch buyers’ stampede to the Toyota Camry and Honda Accord. But the 2008 model has won a level of enthusiasm from motoring writers seldom seen for a Detroit-built vehicle over the past decade. Features that have won praise include bold design, a powerful engine, two-tone upholstery and a spacious boot. However, some have complained about cheap looking plastic fittings. Source: Financial Times, 15 November 2007 Extract 2: SABMiller and Coors join forces for profit pool dip When South African Breweries bought Miller Brewing from Philip Morris in 2002 and changed its name to SABMiller, it reckoned it was obtaining a solid foot hold in what it described as the “brewing industry’s largest profit pool.” But although SABMiller became the second-biggest brewer in the US after Anheuser-Busch, it had found making money in the US more difficult than it thought. Its entry into the US beer market coincided with a dramatic shift in fortunes of North American brewers as consumers started to di scover the pleasures of wine and spirits. Since 2000, servings of spirits in the US have risen more than 5 per cent, while servings of wine have risen nearly 10 per cent. Beer servings, meanwhile, hav