I don’t know about you, but this feels like home run to me! I hope you saw and practiced our predictions like our students did. We got like 3 out of 6 predicted questions correct! i.e. even though not exactly correct word for word but definitely answers are reusable. A very merry xmas to our students and everyone! We feel thankful for the thank you messages from students immediately after the exam and feel relieved for you too. You deserve it because you worked hard and believed.
Here are the actual questions.
1. Prospective students and governments each make decisions that affect the scarce resources that are devoted to university education.
(a) Explain the determinants of a rational prospective student’s decision on whether to participate in university education. 
(b) Discuss the factors that governments should consider in allocating resources to university education. 
2. Recent years have seen a dramatic rise in the output of computer-based products such as smartphones, laptops and tablets.
Discuss the demand and supply factors that determine the output of computer-based products and evaluate which is the most important factor. 
3. Market dominance is the main factor determining the profitability of firms.
(a) Explain how market dominance can influence a firm’s price and output decisions. 
(b) Discuss whether government intervention is always needed when a firm dominates the market. 
4. In its September 2013 Recent Economic Developments Statement, the MAS noted that inflation was expected to rise moderately. Strong GDP growth in Q2 2013 was mainly due to increased output in the manufacturing and trade-related service sectors with a slowing of growth in private consumption. There was expected to be continued strong wage pressure from persistent tightness in the labour market caused by shortages in labour supply accompanied by steady expansion in demand for goods and services from the US, Japan and the Eurozone. Source Recent Economic Developments in Singapore, MAS, 5 Sep 2013
(a) Explain how the above mentioned factors might have caused the rate of inflation to rise in Singapore. 
(b) Discuss whether exchange rate appreciation should remain the most important policy instrument in controlling the rate of inflation in the Singapore economy. 
5. During the recent world wide recession, many European countries chose low interest rates as a monetary policy approach rather than adopting demand led fiscal policy stimulation At the same time, with most of these countries’ governments introducing large cuts in government expenditure in order to reduce their budget deficits, a fiscal contraction actually resulted.
Discuss which policy approach is appropriate for a country during a world wide recession. 
6. “We are restructuring to become more competitive, not less.” Mr Lim Hng Kiang, Minister for Trade and Industry, The MTI Times, Committee of Supply 2013.
(a) Explain why an economy’s comparative advantage might change over time. 
(b) Assess the measures adopted by the Singapore government to improve its global competitiveness.