MJC_H2_ECONS_9757_P1

9757/PRELIM/JC2/MJC/2018 MERIDIAN JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATION 2018 _________________________________________________________________________ H2 Economics 9757/01 Case Study Questions 10 September 2018 2 hours 15 minutes Additional Materials: Writing Paper _________________________________________________________________________ READ THESE INSTRUCTIONS FIRST Do not open this booklet until you are told to do so. Write your name, class and register number in the spaces at the top of the answer sheets. Write in dark blue or black pen. You may use an HB pencil for any diagrams or graphs. Do not use staples, paper clips, highlighters, glue or correction fluid. Section A Answer all questions. Begin Case Study Question 2 on a fresh sheet of paper. At the end of the examination, fasten all your work securely to the cover sheet with the string provided. The number of marks is given in brackets [ ] at the end of each question or part question. [Turn Over] _________________________________________________________________________ This document consists of 7 printed pages and 2 cover sheets.

2 9757/PRELIM/JC2/MJC/2018 Question 1: Education Table 1: Government expenditure per student (S$) in Singapore Year 2010 2011 2012 2013 2014 2015 2016 Primary Education 6 624 6 172 7 396 8 549 9 123 10 081 10 600 University Education 20 630 20 505 20 777 21 870 22 181 21 988 21 853 Source: data.gov.sg, accessed August 2018 Table 2: Gini Coefficient (2017) Gini Coefficient (after tax and transfers) US 0.390 Singapore 0.356 Source: The Straits Times, August 2018 Table 3: GDP per capita (US$) 2012 2013 2014 2015 2016 2017 Singapore 54 715 56 389 56 957 54 940 55 243 57 714 USA 51 450 52 782 54 696 56 443 57 588 59 531 Source: World Bank, accessed August 2018 Figure 1: Government budget balance of Singapore and USA (as % of GDP) Source: Singapore Budget 2018; Congressional Budget Office, April 2018 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 2012 2013 2014 2015 2016 2017 Singapore USA

3 9757/PRELIM/JC2/MJC/2018 Extract 1: Rise in price of university education in Singapore The price of attending university in Singapore has jumped 38% on average since 2007. Official data showed that Singaporeans are spending more on higher education. Singapore's median household income grew 10% over the period and Consumer Price Index (CPI) rose 25%, yet university tuition fees were up 38%. Increased labour costs in Singapore could have been a large contributing factor in the big jump in university costs, besides the cost to un iversities of owning and maintaining buildings, covering utilities and buying research equipment. Government subsidies play a role in increas ing education affordability in Singapore. And Singapore's increases in high