Questions

1. Explain why the price of oil rises rapidly when OPEC reduces it production level [4]
2. Explain how the presence of a positive externality can lead to ar!et failure ["]
#. Explain how a chan$e in interest rates can lead to a depreciation of the %in$apore dollar. [#]
4. Explain how fiscal policy can proote econoic $rowth [4]
&. 'nalyse the ipact of appreciation of the %in$ dollar on %in$apore(s current account [4]
". Explain why onetary policy is not effective in %in$apore. [2]
). Explain whether protectin$ an infant industry is a valid ar$uent in support of
protectionis [#]
*. Explain how $lo+alisation can lead to ine,uity [#]