CJC_H2_ECONS_P1_qns

CATHOLIC JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATIONS In preparation for General Certificate of Education Advanced Level Higher 2 ECONOMICS 9732/01 Paper 1 19 August 2016 1400 - 1615 2 hours 15 minutes Additional Materials : Writing Paper READ THESE INSTRUCTIONS FIRST Write your name, class and question number on all the work 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 highlighters, glue or correction fluid. Begin each question on a new sheet of paper. Answer ALL questions. At the end of the examination, hand in EACH question separately. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 7 printed pages and 1 blank page.

2 © Catholic Junior College 9732/01/Preliminary Exams/2016 Answer all questions Question 1 Globalisation and the Economy Extract 1: Too many immigrants, too quickly The story of Brexit is a complex one, but one thread may b e familiar to some developed countries today, including Singapore: too many immigrants, too quickly. As the European Union (EU) expanded in 2004 from 15 member states to include 10 more countries - mostly poorer ones from Eastern Europe - then Prime Minister Tony Blair opened Britain's doors to job seekers from these countries. Free to move to Britain to work, many from the new EU countries did, attracted by the prospect of better jobs or higher pay than back home. Some parts of Britain’s working class felt the competition and the squeeze. Much of the fury of the ‘Leave’ campaigners focused around accusations that EU migrants were taking British jobs and depressing wages. Meanwhile, the big businesses and their consumers are gaining from this flow of cheap labour. Perhaps Britain had not fully considered the evolving ramifications of EU membership and the allowing of sudden mass movement of populations to an island nation. One pressure from mass movement is how immigration is changing the identity of the country and putting pressure on services like the National Health Service. The undoubtable truth is that developed countries need to find better strategies to manage the impacts of migration and promote integration. Source: The Straits Times, July 2016 Figure 1: Labour flow into the United Kingdom (UK), 2006 – 2015p (provisional) Source: Office for National Statistics Legend: Labour Flows from Non-EU countries Labour Flows from EU countries

3 © Catholic Junior College 9732/01/Preliminary Exams/2016 Extract 2: Will globalisation make everyone better off? Globalisation has made the planet more equal. As co mmunication gets cheaper and transport gets faster, developing countries have closed the gap with their rich -world counterparts. Basic theory predicts that inequality falls