MJC H2 ECON P2 P

______ Econ Paper 2 Additiona ______ READ T Do not o Write yo Write in d You may Do not u Answer t either Se The num ______ MERI D Prelim Highe _________ nomics al Materials: _________ HESE INSTR open this boo ur name, civi dark blue or y use a soft p se staples, p three questio ection A or S mber of marks _________ DIAN JUN minary Exam r 2 _________ Answer Boo _________ RUCTIONS F oklet until you ics group and black pen. pencil for any paper clips, h ons in total, o Section B. s is given in b _________ Th IOR COLL mination __________ oklet/Writing P __________ FIRST u are told to d d register nu y diagrams, g highlighters, g of which one brackets [ ] __________ his documen LEGE _________ Paper _________ do so. mber on all t graphs or rou glue or correc e must be fro at the end of _________ nt consists of _________ _________ the work you ugh working. ction fluid. om Section A f each questi _________ 3 printed pa _________ 2 2 _________ hand in. A, one from S ion or part qu _________ ges. _________ 973 1 Septembe Hours 15 M _________ Section B and uestion. [T _________ _____ 32/2 er 2011 Minutes _____ d one from Turn Over] _____

2 9732/02/JC2 PRELIMINARY EXAMINATION/MJC/2011 Answer three questions in total Section A One or two of your three chosen questions must be from this section. 1 China has implemented a policy to reduce production of rare earth metals which are used in the production of X-ray machines, iPhones and light bulbs. Incomes have risen in recent years, especially in the emerging economies. Discuss the relative impacts on consumers and producers due to the above changes. [25] 2 (a) Explain whether it is always advantageous for a firm to grow in size. [12] (b) Discuss how you would decide if a firm is exerting its monopoly power. [13] 3 To solve income inequality, the USA uses a minimum wage law while Singapore believes that improving t he skills of workers is the best solution. (a) Explain why income inequality is a source of market failure. [10] (b) Using economic theory, analyse whether the above view is justified. [15]

3 9732/02/JC2 PRELIMINARY EXAMINATION/MJC/2011 Section B One or two of your three chosen questions must be from this section. 4 Singapore government supply-side policies have created a more dynamic and flexible labour market. Between 2003 and 2010, unemployment fell from 4.0% to 2.1% but inflation rate rose to 2.8 %. (a) Explain how supply-side policies can lower the level of unemployment. [10] (b) Discuss whether the Singapore government should ever be concerned about the economic consequences of falling unemployment. [15] 5 Some economies have balance of payments deficits while others have balance of payments surpluses. (a) Explain the importance of a sound balance of payments to Singapore. [10] In 2009, the government ran a budget deficit while the Monetary Authority of Singapore pursued a zero appreciation of the exchange rate to stimulate the stagnating economy. (b) Discuss the factors that would affect the success of these two policy measures to boost economic growth in Singapore. [15] 6 (a) Account for changes in Singapore's pattern of trade with the rest of the world. [10] (b) Assess the relevance of protectionism in today's globalised world. [15] END OF PAPER

9732/02/JC2 PRELIMINARY EXAMINATION/MJC/2011 COVER SHEET ECONOMICS H2 (9732) Section A & B: Essay Question Name : ______________________ Civics Group: _______________ Register Number: _____________ Tutor : ____________________ 21 September 2011 READ THESE INSTRUCTIONS FIRST Write your name, civics group and register number in the spaces at the top of this cover page and on all the work you hand in. WRITE down the question number you have attempted. At the end of the examination, fasten this cover sheet to your answer scripts for with the string provided before submission. QUESTION ATTEMPTED MARKS Question _____ /25 MERIDIAN JUNIOR COLLEGE JC2 PRELIMINARY EXAM 2011

9732/02/JC2 PRELIMINARY EXAMINATION/MJC/2011 COVER SHEET ECONOMICS H2 (9732) Section A & B: Essay Question Name : ______________________ Civics Group: _______________ Register Number: _____________ Tutor : ____________________ 21 September 2011 READ THESE INSTRUCTIONS FIRST Write your name, civics group and register number in the spaces at the top of this cover page and on all the work you hand in. WRITE down the question number you have attempted. At the end of the examination, fasten this cover sheet to your answer scripts for with the string provided before submission. QUESTION ATTEMPTED MARKS Question _____ /25 MERIDIAN JUNIOR COLLEGE JC2 PRELIMINARY EXAM 2011

9732/02/JC2 PRELIMINARY EXAMINATION/MJC/2011 COVER SHEET ECONOMICS H2 (9732) Section A & B: Essay Question Name : ______________________ Civics Group: _______________ Register Number: _____________ Tutor : ____________________ 21 September 2011 READ THESE INSTRUCTIONS FIRST Write your name, civics group and register number in the spaces at the top of this cover page and on all the work you hand in. WRITE down the question number you have attempted. At the end of the examination, fasten this cover sheet to your answer scripts for with the string provided before submission. QUESTION ATTEMPTED MARKS Question _____ /25 MERIDIAN JUNIOR COLLEGE JC2 PRELIMINARY EXAM 2011