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ACJC H2 Economics Revision Package

2018
(H2 Mid-Year Exam)

Format of Mid-Year Exam

Choice of six essay questions: 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.

Instructions
Attempt all questions before you check against the answers
released in the LMS.

Reminders
 All candidates MUST arrive at the exam venue at least
15mins before the start of the paper
 All candidates MUST take note of their seating plan which
would be available at the noticeboard outside the exam
venue and/or at the lobby.
 All candidates MUST know their Econs grouping (E.g.,
2EC101), exam index number and name of tutors before the
exam.
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Answer three questions in total.

Section A
One or two of your three chosen questions must be from this section.

1 Growing affluence in emerging markets like China and Vietnam has led to rising
tourist numbers in Singapore. However, the higher foreign worker levy has resulted in
higher cost of operations for hotels. At the same time, the rise of Airbnb, a company
that helps people rent out private accommodation has resulted in greater choice for
travellers.

Discuss the likely combined impact of the above factors on the revenue of hoteliers in
the hotel industry in Singapore. [25]

2 (a) Compare the key features of oligopolistic and monopolistically competitive

markets. [10]

(b) Discuss whether the behaviour of oligopolistic firms is consistent with the
objective of profit maximisation. [15]

3 Singapore raised excise duty on alcohol by 25% and banned alcohol from being sold
in retail shops or consumed in public places from 10.30pm to 7am. These measures
were deemed necessary as people often drink excessively, unwittingly harming
themselves as well as causing fatal traffic accidents.

(a) Explain the economic reasons for government intervention in the market for
alcohol. [10]

(b) Discuss the relative effectiveness of taxation and legislation in curbing the
consumption of alcohol. [15]
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Section B
One or two of your three chosen questions must be from this section.

4 (a) Explain why low unemployment is one of the macroeconomic objectives for
Singapore. [10]

(b) Assess whether the policies adopted by the Singapore government to maintain
low rate of unemployment remain relevant in view of the challenges faced by
the economy. [15]

5 Singapore was supposed to have emerged as a winner from the low oil prices in
2015. However, the benefits of low oil prices have been undermined by the weaker-
than-expected global demand. Sustained low oil prices have dampened her key
sectors such as petrochemical and offshore marine industry, where Singapore builds
70 per cent of the world’s oil rigs and employs almost 75,000 workers.

Source: Adapted from Economic Development Board (EDB) website and

The Business Times, 10 February 2016

(a) Explain the possible impact of falling global oil prices on Singapore’s
macroeconomy. [10]

(b) Assess the alternative economic policies that the Singapore government could
adopt to achieve sustained economic growth. [15]

6 Globalisation has made the planet more equal. As communication gets cheaper and
transport gets faster, developing countries have closed the gap with their rich-world
counterparts. But within many developing economies, inequality has worsened.

Discuss the effects of globalisation on the standard of living in the different

economies. [25]
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- End of Paper -