Section A

One or two of your chosen questions must be from this section

1. Sugar prices rose to a new high, at the same time a fuel tax was announced. Overall, the
sugar market remains well-supplied due to decreasing costs of production while at the same
time, demand for the sweetener is decreasing as consumers turn more health conscious.
Meanwhile, persistently low fuel prices have given little incentive to dedicate more sugar cane
to be processed into ethanol rather than raw sugar.
Source: Economic Calendar
(a) Explain why prices of commodities like sugar can be volatile. [10]
(b)Discuss the impacts of the above scenario on other related markets of sugar. [15]

2. Beer manufacturers are increasingly moving to cans instead of glass bottles. Some benefits
include more consistent flavour profiles as cans do not allow light in, which could alter its
flavour. They are also cheaper to manufacture and the light cans are cheaper to ship, which
means they are also more environmentally friendly. The sustainability aspect is especially
important for millennial consumers, where 40% of them said they have chosen a product
based on environmental impact.
Source: Beverage Dynamics, May 24, 2016
(a) Explain the key features of an oligopolistic market. [10]
(b) Discuss the view that the above strategy undertaken by beer manufacturers will benefit
both the firms and consumers. [15]

3. Explain the causes of market failure arising from factor immobility and income inequality
and discuss the view that government subsidies on retraining workers is sufficient enough to
resolve them. [25]
 Section B
One or two of your chosen questions must be from this section

4. The standard of living in any country can be classified into material and non-material
aspects.
(a) Explain the information you would need in order to determine the standard of living in a
country. [10]
(b) Assess the measures the Singapore government has adopted to raise the standard of
living of the citizens in Singapore. [15]

5. The surging value of the US dollar in 2015 has greatly impacted the global business
landscape, constraining US competitiveness and driving down the cost of doing business in
all other countries, when measured in US dollar terms. For US firms with international
operations, this has the potential to translate into significant cost savings.
Source: Various
(a) Compare and contrast the sources of economic growth between countries like the US and
Singapore. [10]
(b) Discuss whether the Singapore government should respond to the above scenario. [15]

6. Globalisation continues to reshape the international economy. For many firms, global
expansion can have a tremendous positive impact. For others, it is a matter of survival as they
face increasing pressure from foreign competitors.
Discuss the view that globalisation ultimately brings benefits to all economies. [25]