IJC_H2_ECON_Q4

2011    H2 ECONOMICS PRELIM 2 ESSAY Q4                a) Explain the likely causes of unemployment in Singapore. [10] Command  Content  Context  Explain  Causes of unemployment  Cyclical  Structural  Frictional  Singapore    Cyclical Unemployment  Economic Slowdown  Fall in AD  Demand deficient economy  Fall in output  Decrease in demand for factors of production (Labour)  Increase in unemployment Requirements: Examples and relating to Singapore context Structural Unemployment  Changes in the business sectors  Current employment decreases the demand for labour  New employment opportunity demands for new skills from the labour force  Mismatch of the skills present in the labour and the skills demanded by the employers  Increase in Unemployment Requirements: Examples and relating to Singapore context Frictional Unemployment  Due to geographical immobility or imperfect information  Singapore (Imperfect Information)  Labours who are new to the workforce with imperfect information  Does not know where are the jobs available and what are skills required  Unemployment Requirements: Examples and relating to Singapore context       The US Senate voted to on 16th June 2011 to defeat a proposed extension of unemployment benefits for workers who have been jobless for nearly two years. a) Explain the likely causes of unemployment in Singapore. [10] b) Assess the extent to which the Si ngapore government’s approach to solving unemployment may differ with US. [15]

2011    H2 ECONOMICS PRELIM 2 ESSAY Q4    L3 For an answer that uses analysis to underpin discussion on the causes of unemployment. Using Singapore as an example and relating specifically to Singapore on the prevalence of the unemployment. 10m: Analysis that could provide the most prevalent cause of unemployment in Singapore. Max 8: 2 very well elaborated causes of unemployment in Singapore. (Cyclical and Structural) 7-10 L2 An answer that undeveloped discussion on the causes of unemployment in Singapore. Max 6: Theoretical analysis without relating to Singapore 4-6 L1 Descriptive knowledge and/or without link to unemployment in Singapore. 1-3   b) Assess the extent to which th e Singapore government’s approach to solving unemployment may differ with US. [15] Command  Content  Context  Assess  Approach to solve unemployment  Singapore VS US    Cyclical Unemployment  Policies to enhance AD  Singapore (External sectors)  Policies to enhance (FDI or net export)  Explain how the policy work  US (Internal sector)  Policies to enhance (Domestic consumption or domestic investment)  Explain how the policy work Explain the rationale for the different approach taken by both governments. Structural Unemployment  Matching of skills developed in the labours to meet the needs of the employers  Both offers subsidies for development of skills or education  Explain how the policy work Explain the rationale