2021 A-Levels H2 Economics Question Paper (Predictions)
H2 (Paper 2) Essays Predictions: (Exam Predictions, as of 16th August 2021)
As to be expected, the Microeconomics Section (Section A) is predominantly Micro topics, and should consist of the combination of Market Mechanism, Market Structures and Market Failure. However, Cambridge has the liberty to mix some Macro econs concepts in the question. A-Level Economics students beware!
Q1: Market Structures – Either on Price Discrimination, Oligopolistic Competition or specific concepts like economies of scale (EOS) or barriers to entry (BTE).
Q2: Market Failure – Either on Public Goods, Imperfect Information or (De)Merit goods.
Q1: Market Mechanism – Application of elasticity concepts and prediction of impacts on the market, likely, changes in price multiplied, by output, ie producer revenue or consumer expenditure.
2021 Predicted Sample Paper 2 JC & A-Level Econs Essay Questions (Section A)
Q1. Critically analyse the view the firms’ pricing and output decisions depend on barriers to entry and the behaviour of competitors. [25]
Key Issues: Firms’ pricing and output decision;
Evaluation type: cause
Two sided arguments:
Thesis: depends on BTES and behaviour of competitors;
Anti-thesis: other factors such as objectives of firms and government’s interventions;
Judgements: types of Industry and types of goods(need for interventions)!
Theory: market structure, profit max
Applications: real life markets in Singapore (choose a few favourites in advance of exams)
Q2. The European Commission is asking the public how best to reduce the use of plastic carrier bags. It will ask if charging for the use of plastic carrier bags would be effective, or if other options would be better.
(a) Explain why the usage of plastic carrier bags may result in market failure. [10]
(b) Discuss policy measures that could be adopted by the European Commission to address this issue. [15]
Part (a): Causes and effects (market failure)
Theory: Negative externalities as a result over consumption Applications: real life examples of third party and external costs
Part (b)
Key Issues: market failures
Evaluation type: policies
Two sided arguments:
Thesis: suggested policies and how they might works;
Anti-thesis: limitations and conflicts;
Judgements: combination of policies;
Theory: market failures
Applications: EU and plastic bags directive
Q3(a). Explain whether the demand for private cars is likely to be elastic or inelastic with respect to price and Income in Singapore. [10]
Q3(b) Discuss how far would a knowledge of demand elasticities be useful to a government wishing to discourage the use of private cars? [15]
Part (a):
Causes and effects: “factors” => PED, YED values
Theory: elasticity concepts and factors affecting PED, XED and YED of private cars in Singapore; factors affecting PED, XED, YED
Further: for selected market segments, the values of PED and YED may differ!
Part (b):
Key issues: “discourage the use of private cars;
Evaluation type: usefulness of data/concepts
Two sided arguments:
Thesis: elasticities is useful;
Anti-thesis: elasticity is NOT useful (limitations): Judgements: Needs other information and different market segmentations!
(Qn: Is this the only possible balanced answer?)
Theory: demand and supply, elasticity
Applications: Singapore
In the Macroeconomics section (Section B), expect the following:
Q4: One question on domestic economy, economic growth or unemployment, or a combination.
Q5: One question on external economy, 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.)
2021 Predicted Sample Paper 2 JC & A-Level Econs Essay Questions (Section B)
Q4(a) Explain the key macroeconomies objectives of a government. [10]
Q4(b) Discuss whether a shift towards productivity driven growth will help Singapore achieve its macroeconomic objectives?
Part (a):
Explain low inflation, low unemployment and high & sustained economic growth.
Part (b):
Evaluation type: by policies
Two sided arguments:
Thesis: how productivity help to achieve and its limitations / conflicts
Anti-thesis: alternative policies and their limitations/conflicts
Judgment nature of Singapore economy and combinations of macroeconomic policies.
Theory AD-AS framework
Applications: Singapore
Q5(a) Explain the main factors that account for a deficit in the current account in the balance of payments of an economy. [10]
Q6(a) (b) Evaluate the assertion that exchange rate policy in S’pore is limited mainly by the price elasticities of demand for exports and imports. [15]
Part (a):
Define balance of payments (BOP) and current account
Explain high inflation rate, strong currency value, high income levels, etc as main factors..
Part (b)
Key issue PEDm and PEDx
Evaluation type by policies
Two sided arguments:
Thesis: How PED values for both imports and exports limit the effectiveness of policies;
Anti-thesis: how it is not limi6ted mainly by PED: Depends on objectives, S$ is also used to combat inflation, especially cost-push inflation in S’pore. If recessionary times, able to have zer0-rate appreciation or even deprecation. Otherwise, a devaluation in our managed-float exchange rate regime.
(Note: unlikely to face retaliation by our trading partners as our Singapore Dollar only falls in value a little.)
Judgment: Types of limitations, context of Sg, her characteristics and nature of economy.
Theory: AD/AS, PED
Applications: Singapore.
Q6. Globalisation allows more economic integration amongst countries and permits capital, enterprise and talent to flowing to and from countries. The World Trade Organization (WTO) wants to makes globalisation more inclusive and beneficial to all members, whereby the workforce is well-educated and skilled, and where the quality of life is high.
To what extent has globalisation brought more benefits than costs to Singapore In recent years? [25]
Key issue: globalisation
Evaluation type: by effects
Two sided arguments:
Thesis: positive effects;
Anti-thesis: negative effects;
Judgment: nature of economy and policies options
Theory: AD/AS, Comparative Advantage, Trade creation, trade diversion, etc.
Applications: Singapore
