Illustrate how market for electricity changes DD shift rightwards holding SS constant price increase – DD for electricity tend to be inelastic long term contracts; Extract 2 – SS of electricity also inelastic leading supplier can control price; Extract 1. Explain market failure case of market power: Constantly aim to raise value added to stay ahead of other countries who like say Vietnam are in turn building CA in areas where we once had CA. In this case, the protection measures by the EU is not economically justified. General Trend and refinement: Protection is not justified in terms of economic theory – Protectionism goes against the theory of comparative advantage. On the one hand intra-industry trade associated with entrept activity is easy to explain.
It is very important to show that capital account policies have eventual current account consequences. Registered in England and Wales Documents. They can practise monopoly pricing which causes allocative inefficiency. UK although pipeline was available and running only half-full – Excess supply highlighted in Extract 2 where there was lack of gas storage facility; and – Low input costs not passed on to consumers due to rigidity in contract for domestic gas. Good answers would also consider that firms make decisions not just on price but also on non-price decisions.
Question focuses on 1.
Prior to that, it was on a fixed forex system as evident by the fixed forex rate seen in table 4 from to Weaker answers would simply explain the link between barriers to entry and market structure but were unable to focus on pricing decisions. Assess how the markets involved might be affected by these developments. Oligopolistic markets enjoy market power.
After explaining generically how factor endowments give rise to CA and then how CA should be exploited for maximum gains from trade, the answer should focus on Singapore as a case study.
Protectionism is justified in terms of economic theory.
Diagrams are encouraged for such questions. Creation of Energywatch to represent the interest of consumers also limits the ability of energy firms to monopoly price, hence improving allocative efficiency. Level 3 answers are also able to clearly illustrate the pricing setting stuey of a perfect competitive firm in the short run and go on to explain how due to the lack of entry barriers, that the relative ease of entry and exit of new firms led to a situation of only normal profits in the long run.
The answer should focus on how each of the macroeconomic policy may or may not encourage economic growth both actual srudy potential. Although the question does not specify a context, the use of examples will better illustrate and xtudy the quality of discussion L3 and E2 marks involved.
Answers to H2 Economics GCE a Level Exam
A more Evaluative essay would: This would result in a shift in the supply curve for natural gas to the right. However, there eecons economic inefficiency in the market due to relatively small number of energy firms in the market and the business strategies employed.
The UK energy market is also hindered by the fact that it is stidy in the midst of Europe? Define barriers to entry, dividing into natural and artificial barriers.
CSQ2 a i It appreciated. Despite UK price o f natural gas being three times more than that in Netherlands, gas pipeline connecting Netherlands and UK was 3?
Economics Tuition Singapore | A-Level H2 Econs Case Study
The underlying policy therefore seems to be: Also, the data is lacking. This represents allocative inefficiency as natural gas is not allocated to the highest bidding market. Take note that this is not a conflicting objectives essay A generic or theoretical discussion will not be sufficient to address the phrase the most appropriate policies in the question.
As a result the actual comparative advantage in some labour intensive manufactured goods was manipulated to favour import substitution even by firms with little if any comparative advantage.
Ensure there are proper labeling. Students are required to possess some knowledge of actual policies undertaken by the Singapore government 2008 address these market failures.
This will in turn affect their pricing decisions. If there is poor use of economic terminology, e.
Define dumping — Dumping occurs when goods are econe in overseas markets at a price below the marginal cost of production. Not a case of dumping.
H2 Economics Case Study Questions
However, fears of traditional industries declining job losses are real problems but this could be managed with improvement in the countries institutions and appropriate govt policy e.
To score for this question, students need to bring in Scons curves as this econ build on the depth of analysis of the question, and enables the discussion to consider the short and long run. So it looks like we would not change much: Given this situation, it would indeed be difficult for USA to fully benefit from globalization. Similarly, the pattern of imports of foodstuffs, fuel, cars all of which are quite land intensive, much as they may differ in labour and capital intensity, fits well with Singapore’s factor shortcomings.