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ECONOMICS Higher 2
Paper 2

9732/02

2007 JC 2 PRELIMINARY EXAM 2 hours 15 minutes

Additional materials: Answer Booklet/Paper

10 September 2007

READ THESE INSTRUCTIONS FIRST Do not open this booklet until you are told to do so. Write your name, class and register number on all the work you hand in. Write in dark blue or black pen. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Answer three questions in total, of which one must be from Section A, one from Section B and one from either Section A or Section B. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] the end of each question or part question.

[Turn Over

This document consists of 2 printed pages

Answer three questions in total.
9732/JC2 PRELIM EXAM /MJC/2007

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Section A One or two of your three chosen questions must be from this section. Global temperature will be staggering 4 higher by the end of the century, assuming no change to greenhouse emissions.
Economics Today, September 2006

a b

Why are market forces insufficient to prevent greenhouse gas emissions? Assess the policies the Singapore government can adopt to contain the problem of rising greenhouse gas emissions. Private housing prices are now increasing at a faster pace because of good economic prospects and the increasing attractiveness of Singapore as a global city. The government will continue to monitor the market very closely and ensure that there will be sufficient supply of residential space to meet demand." AsiaOne, Jul 02, 2007 With reference to the market for housing in Singapore, discuss whether housing is a normal or inferior good. Discuss the determinants of housing prices in Singapore. Discuss the extent to which monopoly is a realistic market structure in Singapore.

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a b 3

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Section B One or two of your three chosen questions must be from this section. Singapore government supply-side policies have created a more dynamic and flexible labour market. Between 2003 and 2006, unemployment fell from 4.0% to 2.7% yet inflation remains at less than 2%. a b Why has the Singapore economy had low unemployment and low inflation [ [10] in recent times? Discuss whether the Singapore government should ever be concerned [15] about the economic consequences of falling unemployment. Trade between Singapore and New Zealand jumped 35% in the first two months of this year compared with the same period last year after the implementation of a bilateral free trade agreement (FTA). a b Explain the economic justification for Singapore in the signing of Free Trade Agreement with other countries. Discuss the view that the key benefits that Singapore may enjoy as a result of the FTA may be in conflict with some of the governments main macroeconomic goals. Lower interest rate encourages borrowing and higher house prices. a b Explain the impact of lower interest rate and higher house prices on aggregate consumption. To what extent does consumption contribute to the economic growth of your economy? END OF PAPER
9732/JC2 PRELIM EXAM /MJC/2007

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MERIDIAN JUNIOR COLLEGE JC2 PRELIMINARY EXAM 2007

COVER SHEET ECONOMICS HIGHER 2 9732/02

ESSAY
Name: ______________________ Register Number: _____________ September 2007 READ THESE INSTRUCTIONS FIRST Write your name, civics group, register number and economics tutors name in the spaces at the top of this cover page and on all the work you hand in. Circle the question number answered. At the end of the examination, fasten this cover sheet to your answer scripts with the string provided before submission. Questions Attempted Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) Total Marks Civics Group: _______________ Economics Tutor: ____________ 2 hours 15 minutes

9732/JC2 PRELIM EXAM /MJC/2007