HCI_H2_ECONS_Case_Study_QP_P1

© Hwa Chong Institution 2016 9732/01/A/C2 Prelim 2016 HWA CHONG INSTITUTION C2 Preliminary Examinations Higher 2 CANDIDATE NAME CT GROUP 15 CENTRE NUMBER INDEX NUMBER ECONOMICS Paper 1 Case Study Questions Additional Materials: Answer Paper 9732/01 29 August 2016 2 hours 15 minutes READ THESE INSTRUCTIONS FIRST Write your name, CT group, Centre and Index numbers clearly in the spaces at the top of this page and on every page you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid and tape. Answer all questions. Begin Question 2 on a fresh sheet of writing paper. At the end of the examination, fasten y our answers to Question 1 and Question 2 separately with the two cover pages provided. The number of marks is given in brackets [ ] at the end of each question or part question. You are advised to spend several minutes r eading through the questio ns before you begin writing your answers. You are reminded of the need for good English and clear presentation in your answers. This document consists of 8 printed pages and 2 cover pages. [Turn over

© Hwa Chong Institution 2016 9732/01/A/C2 Prelim 2016 2 Answer all questions Question 1 The Coal Industry and Housing Market in the United Kingdom (UK) Extract 1: Decline of the UK coal industry In 1970, 292 UK mines employed 287,000 miners and produced 145 million tonnes of coal a year. Today, the UK has just 4,000 miners and 13 million tonnes of annual output. Domestic production accounts for less than 25% of the 60 million tonnes used in the UK, with the rest mostly imported from the United States (US), Russia, Australia and Columbia. Yet soon, there will be only one deep mine and fewer than 20 surface mines left in the UK after the UK’s largest coal producer, UK Coal, announced plans to close two of the three remaining deep pits because they are no longer financially viable. The closures will affect a total of 1300 workers. The UK coal industry didn't just collapse overnight. The decline started since the First World War. The UK mines came under increasing competition from alternative power sources and cheap coal produced elsewhere in the world. Coal-fuelled power stations provided 80 per cent of UK's energy in 1961. Things changed during the 1990s. Government invested in nuclear energy and by the middle of the decade, gas had overtaken coal. In 1990, gas powered less than 1 per cent of UK's electricity. By 2011, it powered 40 per cent, with coal down to 32 per cent. If 21st Century market forces are less favourable to the UK coal industry, so too is the green agenda. Coal produces electricity more cheaply than ga