IJC_H2_ECONS_9757_Question_P2

INNOVA JUNIOR COLLEGE JC 2 PRELIMINARY EXAMINATION in preparation for General Certificate of Education Advanced Level Higher 2 ECONOMICS Paper 2 Additional Materials: Writing Paper and Cover Page 9757/02 11 September 2018 2 hours 15 minutes READ THESE INSTRUCTIONS FIRST Write your name and class on all the work you hand in. 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/tape. 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. Please begin each essay question on a fresh sheet of paper. At the end of the examination, submit each question separately. Attach a cover page to each essay question and write the question number on the cover page. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. You are advised to spend several minutes reading through the data before you begin writing your answers. You are reminded of the need for good English and clear presentation in your answers.

2 ©IJC 9757/02/IJC/18 Innova Junior College [Turn over This document consists of 3 printed pages and 1 blank page. Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 Discuss the likely combined effects of economic growth and a rise in Goods and Services Tax (GST) on consumer s and producers in different product markets in Singapore. [25] 2 Another firm, Tada has entered Singapore’s ride-hailing industry, joining a slew of others which made similar moves fo llowing Uber’s exit. These firms are going up against the incumbent Grab and t he market is set to get even more crowded with Indonesian ride-hailing giant Go-Jek’s impending entry. (a) Explain the strategies a firm can adopt to compete in the ride-hailing industry. [10] (b) Discuss whether the entry of new firms in various industries necessarily results in higher society’s welfare. [15] 3 Markets may not function well when ma rket participants do not have complete and accurate information, or when one market participant has more information than another. (a) Using examples, explain how information failure mi ght cause markets to not function well. [10] (b) Discuss the appropriate measures to tackle information failure in the markets for different type of goods. [15]

3 ©IJC 9757/02/IJC/18 Section B