8 SectionB Answerone question fromthis section.

(a)
(b)

powermay both be considered Explain why pollution and monopoly as examples of market failure. [10]

Discuss theviewthatgovernment intervention should always occur whenmonopoly exists. t15l

Explain how specialisationand trade can improvethe standard of living of those living in an economysuch as China,which has many naturalresources,and a small economysuch as

4 (a)

(b)

Singapore, whichhas relatively few natural resources. 110l 'protectionism' Explain the meaning of the term and discusswhetherprotectionism can ever be justified. t15l

Copyig ht Acknowledge ments: Question 1 Extract 1 Question 1 Extract 2 Question 1 Extract 3 Question 1 Table 1 Question 1 Figure 1 Question2E'l:rad.4 Question2 Extract 5 Question zfable2 Question2 Table 3 Question2Table 4 @ SPH AsiaOne Ltd. @ CharlotteMoore; Guardian NewspapersLimited 2004. @ SPH AsiaOne Ltd. @ Singapore Departmentof Statistics. @ Singapore Departmentof Statistics. @John Madeley; The Observer,April 4 2004. @Asia Times, November2003. @ IMF Research. @ InternationalCoffee Organisation;2004. @The Telegraph, India.

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