CJC_H2_ECONS_9757_P2

ECONOMICS 9757/02 Paper 2 23 Aug ust 20172018 Additional Materials: Writing Paper 2 hours 15 minutes READ THESE INSTRUCTIONS FIRST Write your name, class and question number 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 highlighters, glue or correction fluid. Begin each question on a new sheet of paper. 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. At the end of the examination, hand in ALL questions separately. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 3 printed pages and 1 blank page. Catholic Junior College JC2 Preliminary Examinations Higher 2 Formatted: Font: 11 pt, Not Bold, Complex Script Font: 11 Formatted: Font: 11 pt, Complex Script Font: 11 pt Formatted: Font: 11 pt, Complex Script Font: 11 pt Formatted: Font: 11 pt, Complex Script Font: 11 pt Formatted: Font: 14 pt, Complex Script Font: 14 pt Formatted: Font: 14 pt, Complex Script Font: 14 pt

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3 © Catholic Junior College 9757/02 JC 2 PRELIMINARY EXAMINATION/2018 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 “A stronger than expected growth in Europe, China, India and non-OECD countries has contributed to the global demand for crude oil. However, the addition of Iranian supply where production looks to outpace consumption has brought bad news for producers of crude oil.” Adapted from Reuters and CNBC “While a stronger than expected growth in Europe, alongside long-term growth in China, India and non-OECD countries have contributed to the global demand for oil, the addition of Iranian supply where production looks to outpace consumption have brought bad news for producers of crude oil.” Assess how the above developments would impact the market of crude oil and its related products. [25] 2 (a) Explain why price and output decisions differ across producers in different markets. [10] (b) Assess the economic case that rational decision making by consumers and producers always results in more equitable outcomes. [15] 3 A new wave of pharmaceutical industry merg ers has seen companies like Pfizer, one of the world’s largest pharmaceutical company, merging with Wyeth, a rival drug maker. This merger is expected to empower research and development of new drugs, which may boost future drug sales. Ho