TAMPINES MERIDIAN JUNIOR COLLEGE

JC2 PRELIMINARY EXAMINATION

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H2 ECONOMICS 9757/02
Paper 2 17 September 2021
2 hours 15 minutes

Additional materials
Two Answer Booklets
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READ THESE INSTRUCTIONS FIRST
Write your name and Civics Group on all the work you hand in.
Write in dark blue or black pen on both sides of the paper.
You may use an HB pencil for any diagrams, graphs or rough working.
Do not use staples, paper clips, glue or correction fluid.

Answer three questions in total, of which one must be from Section A, one from Section B
and one from either Section A or Section B.

The number of marks is given in brackets [ ] at the end of each question or part question.

Begin each Section on a new answer booklet.

Hand in Section A and Section B separately.

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This document consists of 3 printed pages and 1 blank page.

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Answer three questions in total.

Section A

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

1 Plant-based oat milk has gained favour amongst consumers who consider it
healthier and more environmentally sustainable than cow’s milk. At the same
time, there have been disruptions in the production of oat milk. Oat milk is
commonly used in milk-based beverages offered by some cafes.

(a) Explain how, according to economists, the pursuit of self-interest can help
to address the problem of limited resources and unlimited wants. [10]

(b) Discuss how the above events might impact consumer expenditure on oat
milk and related goods. [15]

2 FoodInnovate is a government initiative that enables food companies to

innovate, scale up and expand overseas. Its network of shared production
facilities allows food, manufacturing and delivery companies to collaborate in
developing, producing and distributing new, ready-to-eat foods. However, keen
competition may make such collaboration difficult.

Discuss the extent to which such collaboration among companies would result
in better outcomes for consumers, food companies and the economy. [25]

3 High levels of sugar consumption are contributing to soaring rates of obesity,

which is a major risk factor for many serious health conditions. Obesity is an
outcome of market failure, and innovation, not taxes on soft drinks, may be the
solution.

(a) Explain why obesity may be considered an outcome of market failure. [10]

(b) Discuss the extent to which government policies can address this market
failure. [15]

Tampines Meridian Junior College 2021 JC2 Prelim H2 Economics 9757 Paper 2
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Section B
One or two of your three chosen questions must be from this section.

4 The following data relate to the two stated economies in 2019.

Singapore Vietnam
Real GDP growth rate (%) 0.73 7.0
Unemployment rate (%) 4.11 2.01
Human Development Index 0.938 0.704
Gini Coefficient
(After accounting for government 0.398 0.35
transfers and taxes)

Source: various

(a) Using economic analysis, explain why some economies have higher real
GDP growth rate than others. [10]

(b) Discuss whether it is sufficient to use the economic performance of

countries to explain the difference in their living standards. [15]

5 Governments have aims in relation to price stability and economic growth.

(a) Explain why Singapore chooses exchange rates rather than interest rates
as its main tool of monetary policy. [10]

(b) Assess whether trade-offs between macroeconomic objectives are

inevitable when the Singapore government allows its currency to
appreciate in order to achieve price stability. [15]

6 The surging coronavirus rates have caused the global economy to fall into the
worst recession. Despite high demand for healthcare workers in the country,
unemployment rate in the United States (US) climbed to a record high of 14.7%
in 2020. A US$900 billion Covid-19 relief bill was passed to provide more support
to firms and the unemployed, increasing the US budget deficit three-fold.

Source: Congressional Budget Office, 2020

(a) Explain how the surge in coronavirus could result in the US government
failing to achieve its macroeconomic objective of low unemployment. [10]

(b) Discuss how far supply-side policies could reduce high unemployment and
rising budget deficit in the US. [15]

Tampines Meridian Junior College 2021 JC2 Prelim H2 Economics 9757 Paper 2
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Tampines Meridian Junior College 2021 JC2 Prelim H2 Economics 9757 Paper 2