This year’s essay questions were pretty standard as well. Below are the essay questions.

1.In the small island economy of Singapore, producers face different constraints from those in larger economics.

a) Explain how firms in Singapore will be affected by constraints, such as having a small domestic market and a lack of resources. [10]

b) Assess which are the appropriate polices that firms and governments could adopt to overcome such constraints. [15]


2. Falling interest rates, continued income growth and other factors contributed to a period of rapid residential property price inflation in Singapore from the middle of 2009. However, the government has successfully pursued policies to restrict this rise to the extent that residential property prices actually fell in 2014 and 2015.

a) use supply and demand analysis to explain why falling interest rates and continued income growth may have led to a rapid rise in property prices. [10]

b) Discuss the policies that might be used by the Singapore government to reduce residential property price inflation. [15]


3. Government policies to restrict the use of cars and encourage the public to use the Mass Rapid Transit (MRT) system continue to be a source of heated debate in Singapore. Assess the effectiveness of the policies available to the Singapore government in overcoming market failure in Singapore’s land transport market. [25]


4. High rates of unemployment remain a major issue in many economies of the world. An understanding of various causes of unemployment is needed in order for a government to decide on the economic policies that would help its economy achieve full employment. Discuss the various causes of unemployment and the economic policies that would help to achieve full employment in today’s globalised world. [25]


5. Singapore is considered to have a high standard of living, a high cost of living and a strong overall macroeconomic performance.

a) Explain the link between the standard of living, the cost of living and the macroeconomic performance of a country. [10]

b) Discuss the economic policies which might have resulted in Singapore arrive at this position. [15]


6. The Singapore economy grew by 1.8% on a year on year basis in the second quarter of 2015, sharply lower than the 2.8% growth in the preceding quarter, the Ministry of Trade and Industry (MTI) announced on Tuesday 11 August 2015.

a) explain the internal and external factors that are likely to have contributed to this slowdown in the economic growth rate. [10]

b) Discuss whether the policies aimed to increase the economic growth rate might cause difficulties for Singapore’s economy. [15]