Hope everybody was able to write well. As usual, the H2 Economics essay questions are local (Singapore) based. May the bell curve work in your favour and good luck for the rest of the remaining exams!

Here are the actual questions.

 

1. In order for specialisation to be beneficial, it must be accompanied by exchange.

(a) Explain how benefits to the economy can arise from specialisation and exchange. [10]

(b) Very often these benefits are not fully achieved in domestic and international markets. Discuss the reasons for this. [15m]

 

2. In 2012 the UK had very poor harvests for grain and potatoes, which are major ingredients of many of the foods of UK consumers and also provide feed for much of Britain’s livestock. At the same time there was a decline in the real incomes of many UK citizens, especially those on low incomes.

Using economic analysis, discuss the impact these events are likely to have had on UK consumers and farmers. [25m]

 

3. There is considerable agreement over the need for governments to provide public goods. There is less agreement over the extent to which markets fail because of imperfect information.

(a) Explain why markets might fail in the case of public goods and where information is imperfect. [10m]

(b) Evaluate the alternative policies that are adopted by the Singapore government to correct for both these types of market failure. [15m]

 

4. The following data relate to the Singapore economy in2011.

Private Consumption expenditure $129 billion

Gross Fixed Capital Formation $77 billion

Government Consumption Expenditure $34 billion

Exports of goods and services $531 billion

Imports of goods and services $444 billion

GDP $327 billion

source http://www.singstat.gov.sg/stats/latestdata.html, accessed 30 January 2013

(a) Economies consist of several key sectors such as households, firms, government and the rest of the world. Explain the relative importance of these key sectors of the circular flow of income in determining the national income in Singapore [10m]

(b) Discuss the likely effects on Singapore’s national income and its components when its exchange rate appreciates. [15]

 

5. In 2011 Singapore’s GDP at 2005 prices grew by 4.9%, the total population grew by 2.5%, inflation (as measured by the consumer price index) was 5.2% and overall unemployment stood at 1.9%.

source: singstat.gov.sg accessed 30 January 2013

Discuss the limitations of these statistics in both assessing the change in the standard of living in the Singapore economy in 2011 and comparing it with that of other economies. [25]

 

6. Since the economic crisis of 2008, rates of economic growth across the world have differed considerably.

(a) Explain the key determinants of actual and potential economic growth. [10]

(b) Assess the alternative economic policies that the Singapore government could adopt to maintain a sustained rate of economic growth into the future. [15]

last5mins


6 Thoughts to “2014 H2 Economics Essay Questions”

  1. anon

    Hello, could you please tell us what you think are the approach and question requirements for q3,4,6? I’m feeling really scared and insecured now because i think i screwed up

    1. econs

      Hi, as long as you put in effort, all will be well. Worry pretends to be necessary but serves no useful purpose. Focus on the rest of the papers.

  2. tanya

    hi i was just wondering what do they mean by alternative policies? for 6a we have already explained increase AD through the various components and increase AS due to education training ie ss side policies. then how is it possible to kind of ‘repeat’ it in 6b? please ansswer, im quite worried. thanks!

    1. econs

      I think your approach seems quite safe.

      From my understanding of the question, for part a, you only need to talk about the determinants (components) and not policies to increase AD or AS.

      Determinants of AD would be…
      Increased wages. Higher real wages increase disposable income and encourages consumer spending.
      Increased government spending (G).
      Fall in value of sing dollar which makes exports cheaper and increases quantity of exports(X).
      Increased consumer confidence, which encourages spending (C).
      Lower income tax which increases disposable income of consumers and increases consumer spending (C).
      Rising house prices, which create a positive wealth effect and encourages homeowners to spend more.

      Determinants of AS would be …
      Increased capital. e.g. investment in new factories or investment in infrastructure, such as roads and telephones.
      Increase in working population, e.g. through immigration, higher birth rate.
      Increase in Labour productivity, through better education and training or improved technology.

      For part b, possible answers are actually in my previous 2 posts which I shared earlier.

      Refer to this link
      http://econs.com.sg/essay-writing/singapores-economic-challenges-2014/

      and the end of this link
      http://econs.com.sg/essay-writing/1009/

      1. Tanya

        Thank you! Was wondering if it’s possible to write FTAs, engagement in comparative advantage for part B.

  3. Kelly

    Hello! For 6b, does ‘alternative policies’ referring to fiscal and monetary policies? Or does it refer to alternative policies as in ‘new’ policies we have to think of, beyond what is available now?

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