YJC H2 ECONS 9757 P2 QP

1 YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE YISHUN JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATIONS 2018 H2 ECONOMICS 9757/02 Paper 2 Essays 12 September 2018 1400 – 1615 hrs TIME 2 hours 15 minutes Additional materials: Answer paper Cover page INSTRUCTIONS TO CANDIDATES Write your name and CTG 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, glue or correction fluid. 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. Start a new question on a fresh piece of paper. At the end of the examinations, fasten your work securely in three separate bundles. Tie a cover page to the answer paper(s) for the first question attempted. The number of marks is given in brackets [ ] at the end of each question or part question. You are reminded of the need for good English and clear presentation in your answers. This paper consists of 3 printed pages, including this cover page, and 1 blank page.

2 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 The use of drones for aerial photography and racing are growing in popularity among the wider public. In the next five years, consumer drone sales volume is expected to increase more than tenfold, while average selling price for drones will continue to decline. Discuss the different demand and supply fa ctors and their likely importance in determining the anticipated changes in sales volume and price of consumer drones. [25] 2 (a) Explain the constraints faced by firms operating in a small economy. [10] (b) Discuss the extent to which firms fa cing the above constraints are more vulnerable to closure in a global recession. [15] 3 In recent years, the Singapore gov ernment has been trying to encourage Singaporeans to reduce the consumption of sweetened beverages with high sugar content. This comes as data have shown that the consumption of such beverages comes at a cost to the society. Research lately has also shown that the consumption of such beverages is linked to poor dietary choices of Singaporeans. (a) Explain why the sweetened beverages market might fail. [10] (b) Assess the effectiveness of the policies available to the Singapore government in overcoming the above market failure. [15]

3 Section B One or two of your three chosen questions must be from this section. 4 The cost of living in Singapore has climbed. Yet, living standards is considered high and there is strong economic growth. (a) Explain the link between the standard of living, the cost of living and the economic growth rate of a country. [10] (b) Discuss how far fiscal policy can be used to achieve an improvement in living standards in Singapore. [15] 5 (a) Explain the internal and external factors that are likely to have contributed to rising inflation in Singapore. [10] (b) Discuss the economic policies that a government could adopt to tackle rising inflation. [15] 6 US President Donald Trump won support by tapping into workers' anger over job losses linked to globalisation. He has since pulled US out of the Trans- Pacific Partnership (TPP), a free-tr ade pact signed by countries including Japan, Australia and Singapore. Assess the likely impact of Donald Trump’s decision, to pull the US out of the TPP, on the economic agents in US and the US economy. [25]

4 BLANK PAGE