Section B

One or two of your three chosen questions must be from this section.

4 The Covid pandemic has caused radical change in the labour market as
more people work from home, shifting new job demands from semi-skilled
jobs in retail, catering and cleaning, to jobs that require workers’
proficiency in digital skills.

(a) Explain how the pandemic has hindered the government’s goal to
achieve inclusive economic growth. [10]

(b) Discuss the measures a government can adopt to achieve inclusive

economic growth in view of the structural change brought about by
the Covid pandemic. [15]

5 The world was worrying about recession one year ago and governments
were quick to adopt measures to revive their economy. But now, inflation
has taken center stage on government’s agenda.

(a) Explain why governments are concerned with inflation. [10]

(b) Discuss the extent to which government’s policy to tackle recession

is to be blamed for causing inflation. [15]

6 Most economies in the world are suffering from budget deficits and
balance of trade deficits for the past two years due to domestic and
external challenges.

(a) Explain the relationship between a balance of trade deficit and a

budget deficit. [10]

(b) Discuss whether policies adopted by a government to reduce the

balance of trade deficit would worsen the budget deficit. [15]

*** The End ***

4
JC2 H2 Economics 9757/02