Constantly aim to raise value added to stay ahead of other countries who like say Vietnam are in turn building CA in areas where we once had CA. Similarly, the pattern of imports of foodstuffs, fuel, cars all of which are quite land intensive, much as they may differ in labour and capital intensity, fits well with Singapore’s factor shortcomings. The implication is that the DD rise DD shifts right and hence qty will rise by a more than proportionate amount. It has difficulty explaining intra-industry trade unless we take differing brands of products as different goods. Based on extract 6, India has imposed tariffs on imported whisky causing such whisky to be 5 times the price of local whisky.
Conclude – Singapore uses a mixture of command-based as well as market-oriented approaches to solve. As a result the actual comparative advantage in some labour intensive manufactured goods was manipulated to favour import substitution even by firms with little if any comparative advantage. In such a situation, equilibrium price and quantity do not respond to changing costs which results in allocative inefficiency. Answer should be based on the context of the case material as far as possible. Tertiary Education being under-consumed as a result of imperfect knowledge of the. Students will have to consider the impact on two markets ie recorded music and associated products.
Define barriers to entry, dividing into natural and artificial barriers. UK government took steps to privatise the energy market. Imposition of tariffs and quotas are examples of protectionism. Answers to Exam December … Exons. Establish what is meant by? Trade in goods increased o keeps prices low – freer movement in capital flows o increase in Ecoons – freer movement in labour flows o increased factor mobility?
Students are required to possess some knowledge of actual policies undertaken by the Singapore government to address these market failures.
Weaker answers would simply explain the link between barriers to entry and market structure but were unable to focus on pricing decisions. For the case of devaluation to reduce trade deficitthere must also be spare capacity.
Explain how each of the various macroeconomic policies may encourage actual and potential growth.
Economics Tuition Singapore | A-Level H2 Econs Case Study
Students should understand that the behavior of firms largely depends on the type of market structure that they fall under. The view is that sudden exchange rate changes especially cuts are inflationary and destabilising. Inasmuch as they buy for example high tech consumer electronics, they may indeed buy them from us, but they may simply not buy many in the first place, as a result of their poverty.
CSQ2 a i It appreciated.
GCE A Level H2 Economics – Paper 1 解题方式_百度文库
Increase foreign reserves must mean that Chinese authorities are selling Yuan increase SS of Yuan in FX market and purchasing foreign exchange 208 DD for FX over the years to exert downward pressure on the value of the Yuan. Based on extract 6, India has imposed tariffs on imported whisky causing such whisky to be 5 times the price of local whisky.
UK fuel market is oligopolistic. Advantages of globalisation growing doubts is not well-founded – freer movement in trade in goods and services o positive effects from trade creation? Besides casing BOP problems for USA and countries in the EU, rising value of imports which exceed exports studg cause rising unemployment in these countries structural unemployment.
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The underlying policy therefore seems to be:. Although the question does not specify a context, the use of examples will better illustrate and enhance the quality of discussion L3 and E2 marks involved. This involves increasing expenditure on human capital and strategic alliances with firms that can make use of such labour, by offering ‘supply side support’.
USAs rising current account deficit is seen in figure 1 and this is to be contrasted with Chinas big rise in foreign reserves.
Answers to H2 Economics 2008 GCE a Level Exam
Moreover, Extract 1 also showed that the steep price increases of natural gas resulted in users switching to electricity. This would result in fase energy firms focusing on profit maximisation objective. A Level – Paper Body 1 Multiplier – Explain the multiplier process Show how a change in autonomous expenditure will lead to a multiple change in equilibrium Y. Thus the growing doubt in globalization is not well founded.
To score Level 3, answers should consider the behavior of Oligopoly versus other types of market structures. Exons, the UK fuel market remains an example of market failure. We know it cuts into current living standards.
In fact price of natural gas close substitute of electricity has increased more than price of electricity between and In such cases we fase not import and export identical goods; we import and re-export what we really export is the services of the PSA! Body There is ecoms need to contrast between a market structure with strong barriers to entry versus one. Road congestion resulting in negative externalities due to imperfect information; OR.
This doesn’t work perfectly 1 because FTAs influence which markets are most open to us, hence distorting the pattern a little, and 2 demand influences come into play.