MJC_H1_ECON_P

Econ Paper 1 Addition ______ READ T Do not o Write yo Write in You ma Do not u Section Answer Section Answer At the e The num                       MERI Prelim Highe nomics nal Materials _________ THESE INST open this boo our name, civ dark blue or ay use a soft use staples, n A all question n B one questio nd of the exa mber of mark IDIAN JUN minary Exa er 1 : Answer Bo _________ TRUCTIONS oklet until yo vics group an r black pen. pencil for an paper clips, s. on. amination, fa ks is given in Th NIOR COL amination oklet/Writing _________ S FIRST ou are told to nd register n ny diagrams, highlighters, asten all your brackets [ his document LEGE g Paper _________ do so. umber on al graphs or ro , glue or corr r work secur ] at the end t consists of _________ l the work yo ough working rection fluid. rely together. of each ques 9 printed pa _________ ou hand in. g. stion or part ges 8 13 Septem _________ question. 819/1 ber 2011 3 Hours ______

8819/01/JC2 PRELIMINARY EXAMINATION /MJC/2011 2 Section A Answer all questions in this section. Question 1: Renewable Energy Extract 1: Asian economies using oil subsidies In the global financial crisis, worldwid e energy consumption paused. But Asia continues to grow, despite the dour econom ic outlook in the United States and Europe, and so does its energy needs. Yet supply has been hit by uncertainties in the Middle East. Although we have not seen major disruptions, prices for crude oil are fluctuating, ranging up to US$120 per barrel, and most predict the long-term trend will be upwards. To ensure affordability, Vietnam, Indonesi a and Malaysia continue to subsidise energy, increasing government burdens as oil pr ices rise. Their artificially low energy prices increase waste and destroy incentives to invest in alternative technologies. Studies suggest that energy e fficiency measures can achieve at least the equivalent savings in power needs with safe, off-the- shelf technology at a much lower cost. Renewable energy currently costs more but with technological advances, may prove viable in the medium term. Source: Today Online, 27 July 2011 Extract 2: UK’s green revolution Thousands of new wind turbines could be built across the UK as part of a £100bn investment in renewable energy that could create hundreds of thousands of new "green collar" jobs, Gordon Brown announced today. The prime minister unveiled what he described as a "green revolution" and "the most dramatic change in energy po licy since the advent of nuclear power". He wants to build up Britain's clean power supply in or der to reach the EU-imposed target of producing 15% of the country's energy from renewable sources by 2020. In a speech to an energy summit at the Tate Modern art gallery in central London, Brown said that the North Sea, which has passed its peak in terms of oil and gas supplies, will be turned into "the equival