Promotional Exam Econs Essay Example

Special Exam Econs Essay Example Special Exam Econs Essay Special Exam Econs Essay Paper Topic: Independence ST ANDREW’S JUNIOR COLLEGE H1 ECONOMICS (8819) JC1 Promotional Examinations Revision Package 2011 Contents Section A: Case Studies 1. 2007 TPJC Prelims H1 Paper CSQ1: China’s Water Woes 2. 2007 GCE A-Level Paper H1 CSQ1: International Tourism (canvassed in Lecture) 3. 2008 CJC Prelims H1 Paper CSQ1: The Illegal Drug Market 4. 2009 RVHS Year 5 End of Year Exams Paper CSQ1: Challenges of the Agricultural Sector Section B: Essays 1. 2006 SAJC H1 Final Exams: Application of Demand and Supply †Price Control 2. 2008 SRJC H1 Prelims: Market Failure . 2008 A Levels H2 Essay: Elasticity of DD and SS 4. 2009 PJC H1 Prelims: Theory of DD and SS, Price Elasticity of DD and SS and Market Failure 5. 2009 HCI H1 Prelims: Market Failure 6. 2009 YJC H1 Prelims: How the Macroeconomy Works †Key Economic Indicators and National Income Accounting Section A: Case Studies Answers to the Case Studies Case Study 1: Answers to 2007 TPJC Prelims H1 Paper CSQ1 (a)(i) Compare the level of the inclusion of urban water flexibly with that of provincial water gracefully in China from 1990 to 2015. [2] Coverage of urban water flexibly is relied upon to fall somewhat from 100% in 1990 to the anticipated 98% in 2015 [1] while inclusion of country water gracefully is required to rise steeply from 59% in 1990 to 85% in 2015. [1] (a)(ii) Is water an open decent? Legitimize. [2] Excludability [1] For an asset, for example, water from waterway, stream or underground water, it is non-excludable. It is excessively expensive and practically difficult to confine the advantages to the individuals who pay for them (this is just on account of water which stumbles into territories like the Mekong River which cuts across nations/Yangtze River †cuts across various states). It is accessible, for nothing out of pocket to any individual who needs to utilize them. Or then again However, water in urban communities, gave by the state district, is excludable. Family units or plants can be kept from utilizing this water by cutting flexibly. Competition [1] Water is rivalrous. The utilization of water diminishes the sum accessible for the following individual e. g. wells evaporate if an excessive number of family units burrow wells and draw down the measure of underground water accessible. Waterways evaporate if such a large number of ranchers occupy water for water system. Or on the other hand Clean drinking water that has been appropriately treated and decontaminated is limited. One person’s utilization of the water lessens different people’s utilization of it. Thus, water is anything but an open decent. (b)(i) With the guide of an outline, clarify why â€Å"prices of water in China stayed uniquely about 33% of the world average†. (Concentrate 2, section 2) [2] Low costs as an indication of value roof â€Å"Prices of water in China stayed distinctly about 33% of the world average† †idea of value roof. Value roof is the most extreme value set by the legislature. Concerning Fig. 1, the world normal market cost is Pw where the interest bend meets with the gracefully bend. China sets its cost underneath the world normal market cost at Pc. [1] Diagram [1] [pic] Figure 1: Price roof (Pc) set by China Government to top Price of Water Alternative answer 1. Appropriations (b)(ii) Who gains and loses because of such a strategy referenced in (b)(i)? [4] [pic] (b)(iii) With the guide of a chart, clarify and represent how water contamination in China brings about market disappointment. [6] Students should draw the chart for negative externality (water contamination) and clarify how the water contamination makes the market fall flat. pic] Figure 2: Water contamination as a negative externality Water contamination is a type of negative externalities. Externalities are characterized as overflow impacts to the outsider emerging from creation or utilization exercises. Within the sight of negative externalities, minimal social cost (MSC) will be more prominent than negligible private expense (MPC). This is on the grounds that the minor social cost considers the negli gible outer expense. MSC=MPC +MEC (MEC) to the outsider, for this situation, demolished yields of ranchers, medical issues and so on. From Fig 2, MSC is above MPC. Private harmony happens at Qp where MPB = MPC. The socially ideal level, in any case, happens at Q*where MSB = MSC. There is an overproduction of the great. At the private yield Qp, MSCMSB and society will be in an ideal situation on the off chance that one less unit is delivered. For all the extra units delivered in abundance of Q*, the government assistance misfortune is spoken to by triangle abc. (c)(i) If you were the Minister for Environment, clarify whether the water business ought to be privatized. (demonstrated in the amendment bundle to overlook this qn. ) [6] c)(ii) Evaluate the adequacy of the momentum estimates taken by the legislature as referenced in Extract 1 just as one other measure to decrease water contamination in China. [8] Students to have the option to remark on the points of interest and burdens of the present estimates taken (I. e. forcing water quality gauges, constraining vigorously dirtying enterprises to close, grow the utilization of elective sources, for example, water and reused sewage) and to assess. Understudies to have the option to clarify one other measure and to assess the viability of those measures (for instance, forcing an expense or contamination licenses). Forcing water quality guidelines Advantages: Ensure that the ebb and flow water flexibly accessible will be of a quality norm and consequently less outside expenses emerging from the utilization of unclean water. Disservices: Difficulty of checking in a major nation like China particularly in rustic regions. Since water is given by nearby governments, they will cause the expense in guaranteeing the nature of the water. Driving intensely contaminating ventures to close Advantages: Less water contamination and henceforth less cash squandered in tidying up water. Additionally, there would be all the more spo tless water accessible for utilization. Weaknesses: The enterprises may move to another nation, e. g. India. This influences the financial development of the nation particularly since China is opening up its market. Additionally, the conclusion of the businesses may prompt laying off of nearby specialists and this may bring about distress. Extend the utilization of elective sources, for example, water and reused sewage Advantages: Reduce reliance on the first wellsprings of freshwater and consequently the expense of getting more water from these streams e. g. working of channels. Burdens: Takes opportunity to arrive into impact. May require significant expense in transforming these elective sources into new water for utilization. Duty on contamination An advertisement valorem or a particular assessment can be forced on firms who are associated with the contamination. The duty will add on to the expenses of creation and thus causing the flexibly bend (MPC) to move up. The expense is successful in diminishing water contamination on the off chance that it completely disguises the peripheral outer expense. I. e. the measure of duty forced is actually equivalent to the measure of MEC. Assessments forced should subsequently be adaptable with the goal that they can be shifted to reflect changes in MEC. In any case, it is hard to gauge the peripheral outside expense and consequently the measure of assessment to be forced. Likewise, the viability of the assessment relies upon the value versatility of gracefully. CSQ 2 †ans shrouded in Lect Case Study 3: Answers to 2008 CJC Prelims H1 Paper CSQ1 an) I) Compare th e pattern in retail cocaine costs in Europe and the USA from 1990 to 2005. Any of the 2 beneath. [2] Both are falling. Europe †fall by 50. 6%; USA †fall by 62. 3%; Prices in the USA falling at a quicker rate Prices began to increase after 2002. Retail costs in the USA reliably higher than in Europe I) regarding the information and utilizing financial investigation, represent the pattern in retail cocaine costs saw previously. [4] Using request gracefully examination, clarify why there is a falling pattern (1990-2002) From Extract 3, plans to lessen both interest flexibly; Demand falls at a quicker rate than the fall in gracefully. Delineate with a chart Also acknowledge answers that clarify why costs are ascending from 2002-2005 Demand factor: From Table 2, request fell (2002-2005) Supply factor: From Figure 1, gracefully fell Supply fell relatively more than the fall sought after ( value rise ii) Account for the distinction in discount costs of cocaine among Europe and th e USA. [2] Possible reasons Higher expense of creation; perhaps because of higher vehicle costs Higher interest in Europe Any very much clarified request or flexibly factor will be granted 2 imprints. b) I) Explain the market disappointment made by medicate misuse. [4] Drug is a fault decent; merchandise that produce negative externalities that are considered bothersome by the political procedure. Clarify negative externalities with the guide of an outline. Clarify how MSC MSB brings about market disappointment. Clarification of how thinking little of private cost brings about a bad mark great ii) Evaluate the utilization of a prohibition on unlawful medications to address this market disappointment. [6] Explain how a boycott chips away at the market for drugs. With the guide of a graph (outline isn't essential as long as you can clarify it obviously utilizing appropriate financial investigation), show how a boycott is proficient in adjusting the market disappointment. Assess the utilization of the boycott. c) concerning the information, examine the adequacy of â€Å"Plan Columbia† and recommend elective estimates the administration could embrace to achieve an increasingly proficient assignment of assets. 12] Effectiveness: To a specific degree, it was compelling as it diminished interest from 2002-2005 from 33. 9 million to 33. 7 million clients, as observed from Table 2. Nonetheless, request began to ascend in 2006 to 35. 3 million. Viability in controling requests is in this manner uncertain as information gave halted at 2006. With respect to controlling flexibly, as observed from Figure 1, gracefully tumbled from 2000 onwards, which could be an indication of the arrangement working. Be that as it may, the flexibly began to increment again in 2006, expanding by 16% in 2007. Additionally, the adequacy was restricted as regardless of whether the authori