2008 H2 ECONS CASE STUDY

This would result in privatised energy firms focusing on profit maximisation objective. No – The high and rising consumption of M as seen in the table is not just due to unfair trade practices in the global arena, it is also due to loose lending policies in the US. Define dumping — Dumping occurs when goods are sold in overseas markets at a price below the marginal cost of production. Trade in goods increased o keeps prices low – freer movement in capital flows o increase in FDI – freer movement in labour flows o increased factor mobility? This will limit their ability to practice monopoly pricing. Q5 Discuss the relative significance of the multiplier, the price elasticities of demand for imports and exports, and crowding out in influencing policy decisions. A more Evaluative essay would:

In addition, with greater competition, the market structure can evolve from one that is oligopolistic in nature to one that veers toward monopolistic competition. For small and open economies, the weak multiplier is a more important consideration than the crowding out effect in deciding not to rely on FP and other DD-management tools like exchange rate policy. Although the question does not specify a context, the use of examples will better illustrate and enhance the quality of discussion L3 and E2 marks involved. Advantages of globalisation growing doubts is not well-founded – freer movement in trade in goods and services o positive effects from trade creation? This is inline with market forces where excess DD for yuan due to trade surplus creates upward pressure on the forex rate of yuan. Switching from natural gas to electricity incurs fixed cost as households and firms need to purchase new consumer durables like electric heaters and capital goods like generators. Do not suggest that the exchange rate caused the BOP to strengthen.

Level 3 answers are also able to clearly illustrate the pricing setting behavior of a perfect competitive firm in the short run and go stuey to explain how due to the lack of entry barriers, that the relative ease of entry and exit of new firms led to a situation of only normal profits in the long run. Introduction Define and explain both actual and potential economic growth may use AD-AS model or PPC Explain how actual and potential economic growth may be achieved increasing the components of AD for actual growth and quality and quantity of resources for potential growth Body Thesis Explain how each of the various macroeconomic policies may encourage actual and potential growth.

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Besides casing BOP problems for USA and countries in the EU, rising value of imports which exceed exports will cause rising unemployment in these countries structural unemployment. Define dumping — Dumping occurs when goods are sold in overseas markets at a price below the marginal cost of production. Wcons would result in a shift in the supply curve for natural gas to the right.

So it looks like we would not change much: Overall trend is one of increasing natural gas and electricity prices – Difference 1m?

Lower prices are not reflected by lower costs of production, but due to deliberate government policy. Hence, it is likely that the demand for electricity has increased despite an increase in its own price as households and firms will be substituting natural gas with electricity due to the greater increase in price of natural gas compared to electricity.

sgudy From onwards the policy has moved towards export production against a changing set of factor endowments. Doing so would deny their consumers of consuming cheaper imports which will enhance their welfare. However, the appreciation is very marginal.

Economics Tuition Singapore | A-Level H2 Econs Case Study

Impact of developments in modern technology on recorded music and associated products. With faster broadband internet connections, this increases the ease of using iPods and the players and hence a greater need for PC, etc. Well, mainly supply side policies. Answers should try to link to Part a especially in terms of the examples used to ensure consistency and cohesiveness. This means that the opportunity cost of downloading a file in terms of time saved will be huge.

For the case of devaluation to reduce trade deficitthere must also be spare capacity.

Answers to H2 Economics 2008 GCE a Level Exam

This will limit their ability to practice monopoly pricing. Employer’s CPF, wage flexibility encouraged by NWC, IPR protection, physical infrastructure improvement, corporate tax regimes, manpower development policies all need to be critiqued.

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This doesn’t work perfectly 1 because FTAs influence which markets are most open to us, hence distorting the pattern a little, and 2 demand influences come into play.

2008 h2 econs case study

Students are required to possess some knowledge of actual policies undertaken by the Singapore government to address these market failures. Moreover, Extract 1 also showed that the steep price increases of natural gas resulted in users switching to electricity.

CA can take us only so far in explaining trade. The demand for recorded music will rise DD shifts right by a large extent. Students will have to consider the impact on two markets ie recorded music and associated products rather than to consider them as one Developments in modern technology implies a rise in SS SS shifts right and hence falling prices of iPods and MP3 players Impact on recorded music: Good answers would also consider that firms make decisions not just on price but also on non-price decisions.

No – The high and rising consumption of M as seen in the table is not just due to unfair.

H2 Economics Case Study Questions

USAs rising current account deficit is seen in figure 1 and this is to be contrasted with Chinas big rise in foreign reserves. At the caae time, the yuan showed an appreciation.

We do not know how the countries have performed in trade in services.

2008 h2 econs case study

This begs the question which you must address of where does the improved current account performance come from and how can policy influence it? Policies directed at the capital account could include interest rate policy, taxation policy related to FDI and complementary infrastructure stud other S-side policies such as employer CPF levels.

The Yuan has appreciated from to Evaluations should look at the effectiveness as well as efficiency.

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