9732/JC2 PRELIM EXAM /MJC/2007
Section AOne or two
of your three chosen questions must be from this section.
Section BOne or two
of your three chosen questions must be from this section.4 Singapore government supply-side policies have created a more dynamicand flexible labour market. Between 2003 and 2006, unemployment fellfrom 4.0% to 2.7% yet inflation remains at less than 2%.a Why has the Singapore economy had low unemployment and low inflationin recent times?b Discuss whether the Singapore government should ever be concernedabout the economic consequences of falling unemployment.5 Trade between Singapore and New Zealand jumped 35% in the first twomonths of this year compared with the same period last year after theimplementation of a bilateral free trade agreement (FTA).a Explain the economic justification for Singapore in the signing of FreeTrade Agreement with other countries.b Discuss the view that the key benefits that Singapore may enjoy as a resultof the FTA may be in conflict with some of the government’s mainmacroeconomic goals.6 ‘ Lower interest rate encourages borrowing and higher house prices.’a Explain the impact of lower interest rate and higher house prices onaggregate consumption.b To what extent does consumption contribute to the economic growth ofyour economy?
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‘Global temperature will be staggering 4
higher by the end of the century,assuming no change to greenhouse emissions. ‘
Economics Today, September 2006
1 a Why are ‘market forces’ insufficient to prevent greenhouse gas emissions? b Assess the policies the Singapore government can adopt to contain theproblem of rising greenhouse gas emissions.2 “Private housing prices are now increasing at a faster pace because of goodeconomic prospects and the increasing attractiveness of Singapore as aglobal city. The government will continue to monitor the market very closelyand ensure that there will be sufficient supply of residential space to meetdemand."
AsiaOne, Jul 02, 2007
a With reference to the market for housing in Singapore, discuss whetherhousing is a normal or inferior good.b Discuss the determinants of housing prices in Singapore. 3 Discuss the extent to which monopoly is a realistic market structure inSingapore.