Econs Essay Questions Practice

Section A One or two

of your chosen questions must be from this section

1. Sugar prices rose to a new high, at the same time a fuel tax was announced. Overall, the sugar market remains well-supplied well-supplied due to decreasing costs of production while at the same time, demand for the sweetener is decreasing as consumers turn more health conscious. Meanwhile, persistently low fuel prices have given little incentive to dedicate more sugar cane to be processed into ethanol rather than raw sugar. Source: Economic Calendar (a) Explain why prices of commoditie commodities s like sugar can be volatile.

[ 10]

(b)Discuss the impacts of the above scenario on other related markets of sugar.

[ 15]

2. Beer manufacture manufacturers rs are increasingly moving to cans instead of glass bottles. Some benefits include more consistent flavour profiles as cans do not allow light in, which could alter its flavour. They are also cheaper to manufacture and the light cans are cheaper to ship, which means they are also more environmentally friendly. The sustainability aspect is especially important for millennial consumers, where 40% of them said they have chosen a product based on environmental impact. Source: Beverage Dynamics, May 24, 2016 (a) Explain the key features of an oligopoli oligopolistic stic market.

[10]

(b) Discuss the view that the above strategy undertaken by beer manufacturers will benefit both the firms and consumers. [15]

3. Explain the causes of market failure arising from factor immobility and income inequality and discuss the view that government subsidies on retraining workers is sufficient enough to resolve them. [25]

Section B One or two

of your chosen questions must be from this section

4. The standard of living in any country can be classified into material and non-material aspects. (a) Explain the information you would need in order to determine the standard of living in a country. [10] (b) Assess the measures the Singapore government has adopted to raise the standard of living of the citizens in Singapore. [15]

5. The surging value of the US dollar in 2015 has greatly impacted the global business landscape, constraining US competitiveness and driving down the cost of doing business in all other countries, when measured in US dollar terms. For US firms with international operations, this has the potential to t ranslate into significant cost savings. Source: Various (a) Compare and contrast the sources of economic growth between countries like the US and Singapore. [10] (b) Discuss whether the Singapore government should respond to the above scenario.

[15]

6. Globalisation continues to reshape the international economy. For many firms, global expansion can have a tremendous positive impact. For others, it is a matter of survival as they face increasing pressure from foreign competitors. Discuss the view that globalisation ultimately brings benefits to all economies.

[25]