YJC_H2_ECONS_9757_P1_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 9757/01 PAPER 1 20 AUGUST 2018 0800 – 1015 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 all questions. Start a new question on a fresh piece of paper. At the end of the examinations, fasten all your work securely together. Tie a cover page to the two questions separately: 1. Case Study Question 1 2. Case Study Question 2 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 8 printed pages, including this cover page, and 2 blank pages.

2 Answer all questions. Question 1: Fuel subsidies and vehicle emissions Figure 1: Carbon dioxide (CO2) emissions in Gigatonnes (Gt) per year Note: ROW denotes ‘Rest of the world’; 2017 figures are projections Source: The Global Carbon Project and the Carbon Dioxide Information Analysis Centre (CDIAC), accessed 27 March 2018 Extract 1: Fossil fuel subsidies are a staggering $5 trillion per year Fossil fuels have two major problems. First, they cause climate change and the continued use of fossil fuels will cause enormous worldwide economic and social consequences. Second, fossil fuels are expensive and much of their costs are hidden as subsidies. A study published in the journal World Development quantifies the amount of subsidies directed towards fossil fuels globally rose from $4.9 trillion in 2013 to $5.3 trillion in 2015. Typically, people on the street think of a subsidy as a direct financial cost that result in consumers paying a price that is below the opportunity cost of the product. However, a more correct view of the true costs of the fossil fuel subsidies would include environmental costs like global warming, deaths from air