2020 A-Levels H2 Economics Question Paper (Predictions)
H2 (Paper 2) Essays Predictions: (Exam Predictions, as of 29th August 2020)
As you already know, the Microeconomics Section (Section A) is predominantly Micro Econs topics, and consist of the combination 3 questions of Market Mechanism, Market Structures and Market Failure.
However, note that Cambridge – UCLES – SEAB may choose to mix some Macro econs concepts in the question. See Q1 below for an example. JC A-Level Economics pupils beware!
Q1: Market Mechanism – Application of elasticity concepts and prediction of impacts on the market, or even the domestic economy and global economy!
Q2: Market Failure – Either on Public Goods, Imperfect Information or (De)Merit goods.
Q3. Market Structures – Either on Price Discrimination, Oligopolistic Competition or specific concepts like economies of scale (EOS) or barriers to entry (BTE).
(Unless the question is very familiar to you or it is very easy, you are advise the skip Market Structures essay.)
2020 Predicted Sample Paper 2 JC & A-Level Econs Essay Questions (Section A)
Q1. While poorer countries tend to be the most protectionist, we also see wealthy countries adopting similar policy measures. Indeed, rice subsidies in United States totalled $16 billion from 1995-2020.
(a) Explain the concepts of elasticity of demand of price, income and cross-price. [10]
(b) Discuss the relevance of these concepts to international agricultural trade. [15]
Not a straight forward questions, as it links micro and macro Econs .
Key Concepts: PED, YED & XED; Trade & Protectionism policies
Evaluation type: policies
Two sided arguments:
Thesis: The elasticity concepts favour trade
Anti-thesis: The elasticity concepts favour protectionism
Judgements:
Impacts on the various stakeholders;
Types of Industry and types of goods (need for interventions);
Q2(a) Explain how monopoly power can lead to economic inefficiency. [10]
Q2(b) Discuss the view that a government should allow domestic market dominance, in order to increase her macroeconomic objectives. [15]
A tough question!!
(a) Key Concepts: allocative and productive inefficiency, market dominance
(b) Key Concepts: market dominance and macro goals
Evaluation type: policies
Two sided arguments:
Thesis: Government should allow domestic market dominance, in order to increase her macroeconomic objectives
Anti-thesis: Government should not allow domestic market dominance, in order to increase her macroeconomic objectives
Judgements:
Impacts on the various stakeholders;
Economic priorities:
Degree of market dominance
Policy options
Q3(a). Greater competition is always good. Discuss. [25]
Explain the various degree of competition: high (either perfect competition or monopolistic competition) or high (either monopoly or oligopoly).
Thesis: Greater competition is always good, with respect to each stake holders.
Anti-thesis: Greater competition is not always good, with respect to each stake holders.
Evaluation:
Types of Industry and types of goods (need for interventions)
Degree of consumer exploitation
In terms of consumers, producers and society performance.
Avoid this question, unless you find this familiar.
2020 Predicted Sample Paper 2 JC & A-Level Econs Essay Questions (Section B)
In the Macroeconomics section (Section B), expect the following:
Q4: One question on domestic economy, inflation, deflation, stagflation, economic growth or unemployment, or a combination.
Q5: One question on external economy, balance of payments, current account, exchange rate policy or consequences
Q6: Maybe an additional question on domestic or external economy, or a focus on a specific policy or a set of policies, or even a cross link to Micro Econs.
(Chances are, this question belongs to the Common Last Topics, and is struck off.)
Q4(a) “To be considered successful, an economy needs to achieve low unemployment, and a balance of payments surplus.
(a) Explain this statement. [10]
(b) Discuss whether demand-side policies are the most appropriate policies for Singapore to sustain a successful economy. [15]
(a) Explain low inflation impacts & BOP surplus.
Part (b):
Evaluation: DSP policies
Two sided arguments:
Thesis: demand-side policies are the most appropriate policies for Singapore to sustain a successful economy.
Anti-thesis 1: demand-side policies are not the most appropriate policies for Singapore to sustain a successful economy.
Anti-thesis 1: alternative policies such as SSP and trade
Judgment nature of Singapore economy and combinations of macroeconomic policies.
Theory AD-AS framework
Applications: Singapore
Q5. Due to the onset of CXOVID-19, oil prices have been falling since beginning of 2020.
Q5(a) Using economic analysis, explain the possible causes of falling global oil prices. [10]
5(b) “The impact of falling global oil prices on Singapore’s domestic sector is more beneficial than on its external sector.” Discuss. [15]
Part (a):
Explain demand sand supply reasons.
Part (b)
Key issue impacts on SG
Evaluation type by effects
Two sided arguments:
Thesis: The impact of falling global oil prices on Singapore’s domestic sector is more beneficial
Anti-thesis: The impact of falling global oil prices on Singapore’s external sector is more beneficial
Judgment: context of Sg, her characteristics and nature of economy.
Theory: AD/AS, PED
Applications: Singapore.
Q6. “Free and unfettered trade is always beneficial”.
Discuss the case for free trade and thus the justification against protectionism. [25]
Key issue: trade and protectionism
Evaluation type: by effects
Two sided arguments:
Thesis: case for free trade / justification against protectionism.
Anti-thesis: case for free trade / justification for protectionism.
Judgment: nature of economy and policies options, priorities of macro objectives, conflicts
Theory: AD/AS, Comparative Advantage, Rationales of protectionism etc.
