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2021 A Level 9757 H2 A Level Economics Paper 2 Review
Q Concepts Tested Suggested Approach / Framework
1 Part a) Part a)
Rational 1. Break up question to two parts
Decision Making – consumers
/ Marginalist 2. Question is generally testing on
Principle / Profit RDM & marginalist principle.
Maximisation 3. Explain how consumers will
consider their marginal costs
Part b) against their marginal benefits.
Market Failure: 4. Explain how firms will aim to
Government profit maximise & produce at
Intervention / profit max output
Externalities
Part b)
1. Depending on your perspective
– discuss any 2 to 3 policies of
government intervention in
market for bicycles.
2. Weave in points on how
government intervention may
not be adequate and may cause
issues such as what happened
previously with the bike sharing
firms & the bicycles left all
around in cities.
Where did we cover this Remarks
In ALP8 & Hive Site – Reading List given included The question is a little
Bike sharing tricky – note the way it
• Market for bicycles was included in the is phrased “often said to
reading list in ALP8 & Hive site generate external
benefits”.
We need to consider
how the proliferation of
bicycles (what
happened previously
with bike-sharing firms)
In ALP9 – Predictions included Rational Decision
can cause a whole hot
Making
mess in the cities with
bicycles left everywhere
where regulation is not
tight
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2 Part a) Part a) Essence WS 2021 Micro Q9 If you know how to

Consumer & 1. Explain consumer and producer We did not predict Q2 – but the skills required explain CS & PS, and
producer surplus (with proper technical to do a dissection of the answers on a diagram understand the
surplus definition) can be adapted from Essence WS 2021 Micro “perspectives” part of
Part b) 2. Illustrate CS & PS on a diagram Q9. Diagram is similar, just that we talk about a RDM-framework, this
Perspectives – 3. Make use of examples to tariff instead, and there’s a need to show how question is not difficult.
RDM / DDSS / explain your point in each case. much tax revenue will the government derive
AD-AS analysis from the diagram.
& Macro goals Part b)
1. Make use of a dd-ss diagram to
explain impacts of a tariff on
consumers of imported goods,
domestic producers, the
government (taxes).
2. Essentially – consumers would
experience an increase in prices,
local producers will get to step
up production at a higher price,
government benefits from
higher taxes
3. Analysis can include how US
producers may experience an
increase in COP due to imported
inputs more expensive (e.g. car
manufacturers from more
expensive steel)
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3 Part a) Part a) Essence Workshop Micro Q7

Market 1. Link specific characteristics of We specifically covered telcos in Singapore
structure telco market in SG to oligopoly
characteristics / (few large firms, mutual
pricing & output interdependence, high BTEs)
in oligopoly 2. Primarily, use BTEs & profit-
maximisation concepts to
Part b) explain how firms’ pricing &
Government output will be determined on a
intervention diagram ALP12 Mock Exam 2 Essay Q2
(market power) The points used in our answers about what
Part b) regulators can do to prevent too much market
1. Government intervention to power can be adapted and used for answers in
protect consumers would this question as well.
largely involve preventing firms
from becoming too big, having
too much market power, set
high prices & restricting output
or doing price fixing ALP11 Mock Exam 2 Case Study 3 Part e)
2. Government intervention could In the last question we covered a similar
include further liberalizing the question just that the context is different (video
market (granting more streaming instead of telcos)
licences), legislation to ensure
minimum standards (fines when
standards not met)
3. Consider how government
intervention can backfire (e.g.
not sufficient EOS, firms
shutting down leading to
consolidation)
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4 Part a) Part a) Predictions / Hive Site For part a) you can stop
AD-AS analysis / 1. Explain how cut in personal “Unemployment” was specifically predicted to at what happens to AD
expansionary income taxes lead to increase in be a topic that would come up – it was on the & AS, don’t need to go
fiscal policy disposable income à increase Hive site into real NY / inflation
Consumption à increase AD
Part b) 2. Explain how cut in personal In my opinion – this is a
Expansionary income taxes à increase ‘must-do’ question.
fiscal policy / incentives for workers to work Very standard.
unemployment à workers increase working
hours & productive capacity
increases à increase AS
3. Explain how cut in corporate
income taxes à increases after
tax profits à increase
Investments à increase AD
4. Explain how when firms
increase investments à
amount of capital goods in
economy increase à increase
productive capacity à increase
AS
Part b)
1. Explain process of how
ALP11 – CSQ2
expansionary fiscal policy would
We covered how Fiscal policy addresses
work to address cyclical
unemployment in two questions
unemployment
2. Explain limitations of EFP
3. Explain how EFP doesn’t fully
address other types of
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unemployment e.g. structural

unemployment / frictional
4. Bring in 2 other policies e.g.
supply side policies and how
they serve to deal with the
issues you brought up in point 3
5 Part a) Part a) ALP8 – Reading List
Monetary policy 1. Explain how stronger SGD will MAS Monetary Policy was included in reading
in SG / how help reduce demand pull list and covered in final consolidation lecture
appreciation of inflation
SGD will affect 2. Explain how stronger SGD will
inflation & help reduce imported inflation ALP9 – Predictions Lesson & Hive site
current a/c 3. Explain how stronger SGD will Monetary policy in SG was predicted to be
Part b) help reduce cost push inflation tested
Monetary Policy 4. Explain how imported goods will
In SG / inflation become more cheaper (we Essence WS 2021 Macro Q3
/ external import more), exports become We covered monetary policy in SG
events (macro more expensive (we sell less) &
issues) how that has a negative impact
on our current account balance.
But impact not likely significant
(due to nature of how we
import our inputs)
Part b)
1. Bring in 2 different contrasting
types of unexpected events. My
preference is higher global oil
prices as event 1 & a pandemic
as event 2
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2. Explain modest and gradual

appreciation in the context of
higher global oil prices (that it
helps but not much)
3. Explain modest and gradual
appreciation in the context of
pandemic (no help – in fact,
makes exports less competitive)
– that demand management
policies more appropriate e.g.
EFP.

6 Part a) Part a) ALP12 – Mock Exam 2 Essay Q4

Economic 1. Explain actual vs potential We covered almost all the points needed to
growth (actual growth answer the parts on inclusive growth in SG in
vs potential) 2. Explain one demand side cause this specific essays
of actual growth (e.g. reasons
Part b) causing any increase in AD)
Inclusive & 3. Explain one supply side cause of
sustainable potential growth (e.g.
growth technology, increase in size of
labour force) ALP12 – Mock Exam 2 Case Study 1 d & g
We covered most of the points needed to
Part b) answer the parts on sustainable growth in SG in
1. Discuss how SG tries to achieve this specific case study
inclusive growth (redistribution
policies)
2. Explain how reduction in rate of
GDP growth can affect its ability
to do redistribution
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3. Discuss how SG tries to achieve

sustainable growth (e.g. carbon
taxes, spending on coastal
infrastructure)
4. Show contrasting view on how
reduction rate of real GDP
growth may / may not make it
harder to achieve sustainable
growth