Access to Prelim papers:
Currently Available:

• 1996
• 1998
• 2000
• 2002

Access to Promo Papers:
Currently Available:

• 1998

Prelim Papers
RJC Year 2002

Qn 1. A number of centrally planned economies have been undergoing a process of transition to an economic system based on private enterprise and the market. These economies have to remove market inefficiencies and distortions in their adjustment process.

a) Distinguish between the two types of economic systems. (8)
b) Evaluate the measures a government may take to remove the market inefficiencies and distortions during its adjustment to a market economy. (17)

Distinction Essay:

Qn 2. In Japan, it will soon be possible to grab a basic hamburger for just 59 yen (88 Singapore cents). This is what McDonald in Japan will charge from next month, down from the current price of 80 yen.

a) Distinguish between the concepts of price elasticity of demand, income elasticity of demand and cross elasticity of demand. (12)
b) Discuss whether the different elasticity concepts could be useful in explaining McDonald's new pricing strategy. (13)

Distinction Essay:

Qn 3 . A firm seeks to lower costs both in the short and long run with the sole aim of maximising profits.
a) Examine how a firm can lower costs. (12)
b) To what extent do firms seek to maximise profits? (13)

Distinction Essay:

Qn 4. A monopolistically competitive market is vastly different from a monopoly.
a) Explain the above statement. (10)
b) Discuss what advantages and disadvantages might occur when the market becomes more monopolistic in nature. (15)

Distinction Essay:

Qn 5. a) Explain what is meant by the equilibrium level of national income. (8)
b) Analyse the impact on the economy of an increase in
i Income taxes
ii Investments

Distinction Essay:

Qn 6. Do you think monetary policy alone is sufficient to achieve a low rate of inflation?

Distinction Essay:

Qn 7. A recent Economist magazine reported that the United States' current account deficit is $2 billion a day.
a) Are current account deficits a serious economic problem? (10)
b) Evaluate the strategies that can be used to correct current account deficits. (15)

Distinction Essay:

Qn 8. People want brightly lit and safe roads. They also want reliable health services and quality education. Government regulation is the only way to provide them.
To what extent do you agree with the above statement?

Distinction Essay: