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ANALYSIS OF 2015 OTHER JCS’ PRELIMS EXAM – ECONOMICS H2
DEMAND AND SUPPLY
1
ACJC The oil price has fallen by more than 40%
...
Demand is low because of weak economic activities, and a growing switch away from oil to other fuels
...


[25]

2

AJC

Trouble continues to brew within the Malaysian government
...
While the recently implemented Goods and Services Tax of 6% is seen as a more stable source
of revenue for the Malaysian government, shops are bracing themselves for the impact
...

With the use of demand and supply analysis, discuss the impacts of the factors mentioned on different markets
...
6% to 5
...
The Downtown Line's first phase consisting of 6 MRT stations is set to complete
in 2014, while the price of crude oil recorded a 50% fall
...

The US economy has reported economic growth and falling unemployment
...
Meanwhile, more consumers have opted for synthetic fibre apparel over cotton apparel due to increased quality
and comfort of synthetic fibres
...
S
...

The government collects revenue from sale of Certificates of Entitlement (COEs)
...

Discuss the likely effects of higher COE prices on government revenue and expenditure by consumers on different types of cars
...
Wheat is used by millers to produce flour, an important ingredient in
many food items, such as bread, baked goods, pasta and noodles
...

Using economic analysis, discuss the likely impact of these events on producers and consumers in India
...

Discuss the effects of falling rental costs and economic recession on the markets for fine dining and hawker food
...
This has produced winners and losers in the alternative energy and goods markets
...


[25]

[25]

[25]

[25]

[25]

9

MI

The government has raised the tax on alcohol and liquor in Indonesia
...

At the same time, the economy is experiencing a downturn
...

(a) Using elasticity concepts, explain which party bears the greater burden of the tax increase
...

[15]

10

NJC

In recent years, prices of residential properties have risen at a much faster rate as a result of rapid economic growth
...

(a) Compare the possible effects of economic growth on the prices of different types of residential properties
...


11

NYJC

12

PJC

13

RI

14

RVHS

15

SAJC

With rising incomes, consumers are demanding for more premium leather goods
...

Using economic analysis, discuss the likely effects of the above changes on leather shoe market and its related markets
...
A rise in incomes and the entry of Asian manufacturers such as Huawei and LG offering more affordable
smartphone models are likely to affect the different models of mobile phones in different ways
...

(b) Compare and contrast the likely combined impact of both of these changes on the consumer expenditure on the different models of
mobile phones
...

Source: The Straits Times, 23 February 2015
Discuss the relative importance of factors in determining the price of petrol in Singapore and the impact of a rise in petrol taxes on related
markets
...

Discuss the likely combined impact of these events on various markets in air travel
...
Recent reports in the media have stated that
butter, made from milk, contains greater amounts of heart healthy nutrients than margarine which is generally made from vegetable oils
...

(a) Explain how the removal of the EU quota on milk is likely to affect the consumer expenditure on milk of different types of households in
the EU
...


[12]
[13]

[25]

[10]
[15]
[25]

[25]

[8]
[17]

16

SRJC

Cheaper smartphones with built-in cameras, a proliferation of mobile applications that allow photos to be shared instantly on social media
and technological advancements in the production of digital cameras are affecting the digital camera and related industries
...


[25]

17

TJC

Growing affluence in emerging markets like China and Vietnam has led to rising tourist numbers in Singapore
...
At the same time, the rise of Airbnb, a company that helps people rent out
private accommodation has resulted in greater choice for travellers
...


[25]

18

TPJC

Explain why choices are inevitable at the consumer, firm and government levels and discuss whether these economic agents always make
such decisions according to the marginalist principle
...


[25]

http://www
...
co
...
Accessed on 24th August 2015

Discuss the combined effect of increases in indirect taxes and decreases in personal income tax on consumers in different markets
...
The economic slowdown in the US has affected the level of consumption of
products such as plastic bags and air travel that require oil as a factor input
...
At the same time, due to technological advancement in oil extraction the number of US oil producers has continued to
increase
...


[25]

PRODUCTION COST AND MARKET STRUCTURES
1
ACJC (a) Explain how society can benefit from mergers of firms
...

Discuss the extent to which merging is the best strategy for domestic firms to deal with the threat of globalization
...

(b) Discuss whether price discrimination is always undesirable from a society’s point of view
3
CJC
(a) Explain the reasons for government intervention in the case of market dominance
...

4
DHS
The increase in foreign worker levy by the Singapore government has led to higher unit labour cost
...

(b) Discuss whether firms in the real world set prices at profit-maximising level
...

(a) Distinguish between variable costs and fixed costs and explain whether a rise in these costs will affect a firm’s pricing decision differently
...

[15]

6

IJC

7

JJC

8

MJC

(a) Explain the factors affecting the price and output decisions of firms in monopolistic competition and oligopoly
...

(a) Explain the relevance of barriers to entry to a firm’s decisions on price and output
...

The fast food industry in Singapore consists of a few dominant firms such as McDonald’s and Kentucky Fried Chicken
...

(a) Explain the factors a firm should consider in deciding whether to close down in view of the rising labour costs
...

In theory, firms are assumed to be motivated by the profit maximising objective in its decision making process
...
Discuss
...

(b) Companies often find it more profitable to charge different prices for the same product to different groups of consumers
...

Jet Airways, India’s second largest domestic airline in terms of the passenger load it carries, has slashed prices of its Business Class seats by up
to 60%
...

(b) Discuss whether competition in the airline industry is beneficial to the consumers and the economy

9

MI

10

NJC

11

NYJC

[10]
[15]
[12]
[13]

[10]
[15]
[25]
[10]
[15]

[10]
[15]

12

PJC

13

RI

14

RVHS

15

SAJC

16

SRJC

17

TJC

18

TPJC

19

20

VJC

YJC

Advancements in technology may help to open up markets, leading to greater competition and free flow of goods, services, capital and
knowledge
...

(b) Discuss how technological advancements might enable firms to reap economies of scale and practice price discrimination
...

(b) Discuss whether the behaviour of oligopolistic firms is consistent with the objective of profit maximisation
...

(b) Globalisation affects the degree of barriers to entry faced by firms as well as their access to world markets
...

Communications and Information Minister Yaacob Ibrahim hit the nail on the head this week when he said Singapore’s much-anticipated
fourth cellphone operator had to spur competition and bring innovation to the market causing the existing telcos to also innovate
...
businesstimes
...
sg
Consider the market structure in which Singapore’s telecommunications (telcos) industry may operate and discuss if barriers to entry are the
main factor influencing the behaviour of these firms
...

(b) With the use of relevant examples, examine the extent to which industries in Singapore are dominated by a few large firms
...

(b) Discuss whether in the real world, all firms big and small, aim to produce at their profit maximising output levels
...
If regulators approve the deal, it will
enable the DirecTV-AT&T combo to become a leader in content distribution across various platforms including mobile, broadband and TV
...

Source: AP Online, 18 May 2014
(a) Explain how the size of a firm affects its pricing behaviour and profits earned
...

Starbucks Coffee Company today announced it is opening its first store in Brunei – the company’s 64th global market – and its 100th store in
Singapore, which will give people with autism the opportunity for meaningful employment and new lifelong skills
...
marketwatch
...
Accessed on 2nd August 2015
(a) Explain how globalisation could increase a firm’s profit
...


(a) Explain how firms can increase their market power
...


[10]
[15]
[10]
[15]
[10]
[15]
[25]

[10]
[15]
[10]
[15]

[12]
[13]

[10]
[15]

[10]
[15]

MARKET FAILURES
1
ACJC The Gini coefficient decreased from 0
...
463 in 2013
...
463 to 0
...

Source: Singapore Department of Statistics, 18 February 2014
(a) Explain how labour immobility and market dominance may lead to income inequality
...

2
AJC
Singapore raised excise duties on alcohol by 25% and banned alcohol from being sold in retail shops or consumed in public places from
10
...
The measures were deemed necessary as people often drink excessively, unwittingly harming themselves as well as causing
fatal traffic accidents
...

(b) Discuss the relative effectiveness of taxation and legislation in curbing the consumption of alcohol
...

(b) The economic problem is best left to the free market to manage
...

Discuss whether governments should intervene with the use of taxes and moral suasion in the free market
...

5

HCI

6

IJC

7

JJC

8

MJC

In 2013, the Pollution Standards Index (PSI) in Singapore hit a record high
...

(a) Explain the likely reasons for the shortage of face masks and the role of price mechanism in correcting the shortage
...

(a) Explain why merit goods and immobility of factors of production may lead to market failure
...

Many working parents enrol their children in childcare centres for supervision during the day
...
In contrast, in the United States, childcare subsidies are not given
...

(b) Assess the economic case for the two different approaches towards childcare services in Singapore and United States
...

(a) Explain why negative externalities and income inequality may lead to market failure
...


[10]
[15]

[10]
[15]
[8]
[17]

[25]

[10]
[15]
[10]
[15]

[10]
[15]

[10]
[15]

9

MI

Under Singapore’s Bus Service Enhancement Programme (BSEP), over 248 new buses were added to beef up 111 existing services
...

(a) Explain why there is a need for governments to invest more in managing road usage
...


10

NJC

In the UK, primary and secondary education in the state schools is provided free of charge whereas in Singapore, all school pupils are required [25]
to pay school fees which are highly subsidised
...


11

NYJC

[10]
[15]

12

PJC

(a) Explain the main sources of market failure in Singapore
...

Governments are increasingly concerned with factor immobility which would lead to rising income inequality
...

(b) Evaluate the policies currently used by the Singapore government to correct these causes of market failure
...

(a) Explain the economic case for government intervention in the market for healthcare
...

Vast tracts of forest in Indonesia were burnt annually to provide land for planting crops
...
scidev
...

(b) Assess the various policies that the Indonesian government could implement to reduce the negative impact caused by the forest fires
...
This raised concerns that with more landing and take-off, local air quality will
be degraded
...

(b) The potential benefits of removing market failure can never outweigh the costs of government failure
...

(a) Explain how consumers and producers in the process of maximising their own welfare enable the problem of scarcity to be managed in a
free market
...


[10]
[15]
[25]

[10]
[15]

[10]
[15]
[10]
[15]

18

19

20

TPJC

VJC

YJC

In the UK, tickets to see the opera are heavily subsidized
...
Since then, only a few other nations around the world have followed suit
...

Source: Adapted from BBC News, 1 Dec 2011
(a) Explain how the price-elasticities of demand and supply for goods and services limit the effectiveness of government policy to correct
market failure
...

Governments often subsidise training programmes and intervene in markets where there is possible abuse of market power
...

(b) Evaluate current policies adopted by the Singapore government to correct for these types of market failure
...

(a) Explain how the presence of externalities and imperfect information in the healthcare market may lead to market failure
...


[10]
[15]

[10]
[15]

[10]
[15]

MACRO PROBLEMS AND POLICIES
1
ACJC (a) Explain the possible causes of an increase in household consumption
...


...

Source: Singapore Population White Paper, January 2013
(a) Explain the consequences of ageing population and falling productivity growth on the Singapore economy
...

2

AJC

Businesses cannot rely on low-cost, low-skilled foreign manpower to achieve its economic aims
...


[10]
[15]
…………
...
gov
...
gov
...


...

China recorded GDP growth of 7
...

(a) Explain the impacts of the above development on price stability in Singapore
...


3

4

5

6

CJC

DHS

HCI

IJC

Singapore’s recorded a 6
...
4 billion in 2013, a
massive 18
...

Discuss the extent to which the above figures may be used as an indication of improving living standards in Singapore
...

In line with the Government’s restructuring efforts to achieve economic growth driven by sustained productivity improvements, the Ministry
of Manpower is taking steps to raise the quality of our workforce and reduce reliance on foreign labour
...

(b) Discuss the view that the government should focus on supply side policies rather than demand management policies to achieve sustained
economic growth
...

Assess the extent to which an improvement in the living standards of an economy requires that achieving a healthy balance of payments be
the top economic priority
...

UK is in battle over stagflation
...
Economists consider stagflation particularly tough to battle
...

(b) Discuss the most appropriate policy that a government could adopt when confronted with stagflation
...

(b) High youth unemployment rates are increasingly a problem in many parts of the world
...
Assess the relative importance of the various reasons for youth unemployment in
different countries
...

Discuss the extent to which economic growth of countries depend more on government policies than the amount of natural resources they
possess
...

(b) Discuss the extent in which increase in labour productivity can help to address these problems
...

The achievement of macroeconomic objectives by an economy is dependent on other economies
...


[10]
[15]
…………
...


[10]
[15]

…………
...

[25]

7

JJC

8

MJC

9

MI

10

11

NJC

NYJC

(a) Explain how economists compare the economic performance of different countries
...


...

(b) Assess the relative effectiveness of monetary policy and fiscal policy in achieving economic growth in different economies
...

(b) Assess the extent to which conflicts in macroeconomic goals limit the scope to use interest rate policy in any economy
...

Explain the types of unemployment in an economy and discuss whether protectionism can help governments solve these different types of
unemployment
...

Prices in an economy can be affected by external factors as well as by domestic factors
...

(a) Explain how changes in the external value of a currency can affect the domestic price level
...

(a) Explain the trade-offs in macroeconomic objectives that Singapore is likely to face when it allows the exchange rate of the Singapore dollar
to appreciate
...


...
”
(a) Explain why households should not be encouraged to save during an economic recession
...

(a) Pump priming is an action taken by the government to stimulate an economy, usually during a recessionary period
...

(b) Assess the view that a large increase in national income is always desirable
...

Macroeconomic policy decision makers set targets for key policy objectives in relation to employment, inflation and economic growth
...

(b) Discuss whether macroeconomic policy decision makers should rely solely on supply-side policies to achieve these key policy objectives
...

[10]
[15]

…………
...


[10]
[15]
[10]

[15]
…………
...

Explain why some countries have relatively smaller multiplier values than others and discuss the extent to which the estimated multiplier
value is useful in predicting the impact of a rise in government spending on an economy
...

Unemployment rate hits record high in some countries due to internal and external problems
...

(b) Discuss the alternative policies that a government could adopt to reduce the high rate of unemployment
...
We do not have anything
but ourselves”, PM Lee Hsien Loong said, stressing that improving productivity and maintaining growth is the only way Singaporeans can
continue finding good jobs and having opportunities
...

(b) Assess whether a rise in productivity allows Singapore to achieve its macroeconomic objectives
...

Economic conditions in the United States have largely returned to normal and a Federal Reserve Bank decision to raise interest rates should
come soon
...

(b) To what extent will the rise in US interest rate have an adverse impact on the Singapore economy?
Individual saving is collectively harmful, particularly when the unemployment rate is high
...

Discuss how far the level of thriftiness affects the effectiveness of pump-priming in tackling the high unemployment rate
...


...
This came after data showed that inflation rate increased
from 9
...

Adapted from Reuters, Dec 2013 & www
...
eu
(a) Explain how firms and households may be affected by inflation
...


[25]

……………
[10]
[15]

[12]
[13]
……………
...


[10]
[15]

16

17

18

19

SRJC

TJC

TPJC

VJC

Consumer price inflation in Singapore averaged 4
...
Extremely low interest rates coupled with stronger economic conditions globally have also led to private debt-toGDP ratio in Emerging Asia rising from 97% in 2008 to 122% in 2012
...
mas
...
sg, accessed July 2015
(a) Explain whether internal or external factors are the main cause of inflation in Singapore
...


...
Out of the eighteen million unemployed, three million were between the ages of 15 to 24
...

(a) Explain the possible economic trade-offs faced by a small and open economy
...


...
6 trillion and US$17
...
However if GDP statistics are not adjusted for cost of living, the U
...
economy still dwarfs China's, at US$17
...
4 trillion
...

(b) Discuss the problems of using PPP adjusted GDP in making international comparisons of the various aspects of living standards between
these two countries
...
Growth is also
likely to remain elusive because southern Europe is suffering from fiscal austerity and a shortfall of credit
...

(b) Discuss the extent to which low unemployment should be the most important goal to a government
...

(a) Explain how injections affect the circular flow of income of an economy
...


[10]
[15]
…………
...

[10]
[15]

Unlike most other countries, Singapore has adopted the use of the exchange rate rather than the interest rate as the instrument of monetary
policy
...

[10]
(b) Discuss the extent to which conflicts in macroeconomic objectives may arise for Singapore when it adopts exchange rate policy
...

(b) Discuss whether the use of exchange rate policy alone can effectively tackle inflation in Singapore
...

In each of the budget announcements from 2012 to 2014, the Singapore government has emphasised on two key themes
...

Assess the extent to which Singapore should still continue to prioritise the goal of achieving economic growth over other economic goals
...

[25]

INTERNATIONAL TRADE
1
ACJC Assess the extent to which the improvement of standard of living in Singapore is dependent on the openness of the economy
...
Its critics, however, warned of damage to domestic workforce from outsourcing and offshoring and are clamouring for more
protection for workers
...

3
CJC
Discuss the view that protectionism brings harm to the free market economy
...

(a) Explain how a country could impose trade protection to reduce its imports
...

5
HCI
(a) Explain what might cause a current account deficit in the balance of payment
...
However, countries like Singapore do not engage in
protectionism
...

6
IJC
(a) Explain how an economy is affected by globalisation
...


[25]
[25]

[25]
[8]
[17]
[10]
[15]
[10]
[15]

7

JJC

Discuss whether a country that practises protectionism should adopt free trade instead
...

(b) Discuss if there is a need to change the current policies adopted by Singapore government to manage its balance of payments
...

“Despite the benefits of globalization, developed economies need protectionist measures to deal with its challenges
...


[10]
[15]
……………
[25]

9

MI

The trend in business and trade in recent years is towards globalisation
(a) Explain the trend towards globalisation
...
Discuss
...


11

NYJC

Explain how globalisation has changed Singapore’s pattern of trade and discuss whether Singapore is among the economies that have most to [25]
gain from globalisation
...

Assess the extent to which the above statement is true for Singapore
...

(b) Countries are increasingly worried about their increasing trade deficits
...


...
As such, free trade is often advocated to grow an economy
...

(b) Discuss the extent to which free trade should be advocated over protectionism to grow the economy
...
Under the FTA, the EU will eliminate
tariffs on all imports from Singapore over five years, while Singapore will grant duty-free access for all imports from the EU
...

Source: Todayonline
...

(b) Assess the extent to which Singapore could benefit from signing Free Trade Agreements
...
The largest impact
has been on developing countries, which can now attract foreign investments, thereby enabling them to reduce poverty significantly
...

(b) Globalisation tends to benefit developing economies more than developed economies
...


[10]
[15]
……………
[10]
[15]

[10]
[15]

[10]
[15]

17

TJC

The US’s massive and sustained trade deficit is a long term macroeconomic problem that is caused primarily by China’s currency
manipulation
...
Do you
agree?

[25]

18

TPJC

[25]

19

VJC

Globalisation is desirable, so long as the global economy is not in recession and prices are kept low
...

“A current account deficit has a more adverse impact on the economy than a capital account deficit”
...


...

(b) Assess the appropriateness of using protectionism to help a small country tackle those challenges relative to a large country
...

(b) Assess the supply-side policies the Singapore government could adopt to continue benefiting from trade
...

[10]
[15]

ANALYSIS OF 2015 OTHER JCS’ PRELIMS EXAM – ECONOMICS H1
MICROECONOMICS
1
ACJC (a) Explain how the price mechanism allocates scarce resources in the free market
...

2

AJC

In Singapore, the retail price of a pack of 20 cigarettes has gone up from $2
...
00 in 2012 – almost a 300% increase
...

(b) Discuss the effectiveness of the policies the Singapore government currently adopts to improve resource allocation in the market for cigarettes

[10]
[15]
[10]
[15]

3

CJC

(a) Explain why government intervention in the case of positive externalities may not lead to an efficient allocation of resources
...


4

DHS

Crude oil prices have increased sharply due to booming Asian economies, increasing difficulties in extraction, and lack of viable alternative fuels,
causing rising inflation in oil-importing countries
...

(b) Discuss the policy options an oil-importing country can adopt in view of the rising inflation
...

(a) Explain how the pursuit of self-interest addresses the central problem of economics
...

In 2009 UK government supported the production of renewable energy through subsidies, to reduce the reliance on non-renewable energy
...

(b) Discuss whether taxation is the best way to deal with the misallocation of resources in the market for non-renewable energy
...

(b) Some governments are reducing subsidies for retraining programmes citing large fiscal budget deficits as the reason
...

Like many societies, Singapore attempts to solve the central economic problem by improving the standard of living of her citizens
...

(a) Using the concept of opportunity cost, explain the central economic problem that the Singapore government will have to solve
...


[10]
[15]
[10]
[15]

[10]
[15]
[10]
[15]

[10]
[15]

9

MI

(a) Explain why government intervention is advocated in the markets both for public goods and for goods where positive externalities are present
...
However, a fare is charged for travelling on public transport in other areas of
Estonia
...


[10]
[15]

10

NJC

[10]
[15]

11

NYJC

(a) With the use of examples, explain the concepts of scarcity, choice and opportunity cost
...

"“The financial crisis in 2007 – 2009 dispelled the myth that competitive markets and self-interested individuals alone are sufficient to ensure
efficient outcomes
...

Adapted from source: Low, D; & Wu; June 2011; Civil Service College
...

(b) Explain and evaluate one method that a government might use to bring about a more efficient allocation of resources when, for some reason,
there is market failure
...

(ii) negative externalities
...

Discuss the extent to which the price elasticity of demand for a good affects the effectiveness of using indirect taxation to correct this market
failure
...
It decides on which goods should be
taxed, which to be subsidised and which ones it should produce
...

(b) Price mechanism will allocate scarce resources in the most efficient manner for all goods and services in a market economy and there is no need
for government intervention
...

(a) Explain why the price mechanism fails to allocate resources efficiently in the free market
...

Discuss the view that a policy of tradable permits is the best that is available to tackle this problem in an economy such as Singapore
...

(b) Discuss the impact of globalisation on the economic agents of a country
...

(b) Discuss the usefulness of price elasticity of demand to a government
...

(b) Discuss the need for the government to always intervene to ensure efficient resource allocation
...
It's also been a decade since most of UK's national museums and art galleries abandoned
entrance fees as a matter of government policy
...
Many countries remain
wedded to taking money at the door
...

(b) Discuss the view that differences in entry fees to the opera, national museums and art galleries between countries is solely due to perceived
differences in the external benefit they generate in each country
...

(b) To what extent is a ban the best way to tackle market failure associated with demerit goods?
(a) Explain how the price mechanism allocates scarce resources among competing needs in a free market
...
As a result, the government may sometimes use a policy mixture where more than one policy is used, to
tackle an economic problem more effectively
...


[10]
[15]
[10]
[15]
[10]
[15]

MACROECONOMICS
1
ACJC (a) Explain the consequences of a persistent and large balance of payments deficit on an economy
...

2
AJC
(a) Explain the key determinants of sustained growth in Singapore
...

3
CJC
(a) Explain why there is a need for governments to engage in protectionism
...
Recently, the Malaysian ringgit has slumped to a new historic
low against the Singapore dollar
...

(b) Discuss the likely effects of a depreciation of the Malaysian ringgit on the Singapore economy
...

(b) One cost of globalisation is structural unemployment
...

(a) Explain how countries measure their economic performance
...

Many countries aim to improve their economic performance which includes internal and external price stability, healthy balance of payments,
sustained economic growth and full employment
...

(b) Discuss the extent to which globalisation can help Singapore improve her economic performance
...
Advanced economies are expected to see a pick-up in growth, emerging
markets and developing economies are projected to see slower growth
...

(b) Discuss the effectiveness of using exchange rate as a policy tool to achieve both low inflation and economic growth in Singapore
...

(b) Suppose a country such as Singapore were to experience a significant fall in demand for its exports
...

Discuss the view that supply-side policy is the best policy option in reducing high unemployment in an economy
...

(b) Suppose a country such as Singapore were to experience a period of high unemployment and inflation rates
...

(a) Explain the possible causes of an appreciation of a country’s currency
...


[10]
[15]
[10]
[15]
[10]
[15]

[10]
[15]
[10]
[15]
[10]
[15]

[10]
[15]

[10]
[15]
[10]
[15]

[10]
[15]
[10]
[15]

12

PJC

13

RI

14

15

RVHS

SAJC

16

SRJC

17

TJC

18

TPJC

19

VJC

20

YJC

(a) Explain the possible effects of rising inflation
...
That is why most Central Banks are tasked with
keeping a lid on inflation through interest rate and exchange rate
...

Singapore’s inflation is to stay low for now
...
1% on-year
...

(b) Discuss whether the Singapore government currently adopts the most appropriate economic policies to maintain a low rate of inflation
...

(a) Explain how the above-mentioned indicators of economic performance determine the choice of policy to deal with a deficit on a country’s
balance of payments
...

Be it to raise or lower inflation, governments around the world have used interest rates as a means to tackle this problem
...

(b) Discuss whether the control of interest rates is the best approach to tackle inflation
...

(b) Globalisation has resulted in improvements in standard of living in all countries
...

(a) Explain how a small and open economy could encounter trade-offs in its economic objectives
...

Record unemployment has led to a rise in the number of young entrepreneurs leaving southern Europe to seek their fortunes
...

Sources: BBC News, 27 June 2013 and Economist, 9 March 2014
(a) Explain how the rise in the number of entrepreneurs leaving should be a cause of concern for southern Europe
...

(a) Analyse the causes of inflation in Singapore
...

The increasing trend of globalisation involves more world trade and more movement of capital and labour, creating opportunities for Singaporean
workers and firms
...

(b) However, not all workers will benefit as increasing globalisation could potentially lead to increasing unemployment as well
...


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