2011 H1 Economics Prelim Questions
With the help of a diagram, analyze the effects of China’s increasing control over rare earths mines on the Japanese economy. To what extent would China’s reduction in the export of rare earths pose a challenge to the West’s march toward a greener future? Evaluate the effectiveness of the Chinese’s government’s intervention in the market for rare earths To what extent do you agree with the view that the US trade position with China over the period was as a result of China holding down the value of the Yuan? Explain why the Chinese government rejected calls to allow appreciation of the Yuan to help tame inflation Discuss whether a national minimum wage would be a step in the right direction for Singapore In view of the challenges arising from globalization, discuss whether the measures in the case material are likely to be effective in boosting economic growth and creating jobs.
Explain how the invisible hand works in the allocation of resources Evaluate the view that a government such as that of Singapore should subsidize entry to museums and tickets to watch art performances Examine the effects of a higher rate of inflation
Assess the view that monetary policy is the best way for the Singapore government to achieve price stability
Explain how deflation can affect Japan’s economy negatively Discuss the extent to which subsidies improve Japan’s BOT. Explain why the market under-produces renewable energy.
Discuss how the use of subsidies and other appropriate policies can correct this market failure Explain how this investment may affect Vietnam’s current and capital account balances Analyze how Vietnam’s national output and inflation rate may be affected by this investment Using demand and supply analysis, explain why coffee prices are expected to “jump” Discuss whether the increasing trend towards freer trade necessarily improves standard of living.
Explain why economic theory stresses the importance of efficiency in the allocation of resources. Discuss whether efficient allocation of resources is only possible with the presence of government intervention If you were asked as an economist to evaluate the performance of an economy, explain what information you would need. Discuss the possible policy that a government could adopt to improve the performance of an economy.
With the aid of a diagram, explain the impact on the drug market when its patent expires. Identify the type of externality that exists in the pharmaceutical industry and explain how it leads to inefficiency in resource allocation. Discuss whether patents are better than subsidies in encouraging innovation in the pharmaceutical industry. In the light of the data provided, evaluate the importance of innovation in achieving sustained economic growth for Singapore. Explain a possible opportunity and challenge of belonging to an economic union such as the EU To what extent would a prolonged economic downturn in Europe affect the performance of the Singapore economy? Greece could be caught in a vicious circle as attempts to tackle debt will only further stifle economic growth. Discuss.
Explain why pollution is a source of market failure
Evaluate the impact of an anti-pollution tax to mitigate pollution in a country like China, on her economic growth and BOP. Explain why governments should be concerned with high inflation. To what extent is gradual appreciation of the Singapore Dollar the best policy in maintaining low inflation in Singapore?
Explain how the measures implemented by the Chinese government help to curb rising property prices Evaluate any 2 measures used to cool the property market
Comment on the effects of the housing boom in China
Discuss whether the Singapore government should intervene in the housing market. Explain the case for small economies signing FTAs with China. Assess the effectiveness of ‘Buy America’...
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