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(9) 2011 VJC Prelim H2 Paper Q4Singapore’s real GDP growth was 13.9% and current account surplus growth was 32.8% in2010.a) Explain why real GDP and current account balance are indicators of living standards in Singapore. [8] b) Discuss the most appropriate policies that a government could adopt to achieve sustained economic growth. [17] Approach Define real GDP, current account balance and standard of living. Explain the use of real GDP per head as the key indicator of standard of living. Explain the great importance of trade to the Singapore economy. Since GDP = C+I+G+(X-‐M) the size of NX as a percentage of GDP is of significance for Singapore. However, both are indicators only of the material welfare of the people. To have an indication of the quality of life, there must be other indicators. Brief Outline Define standard of living -‐-‐ the material and non-‐material welfare of an individual or household. Real GDP Define Real GDP -‐-‐ the value of final goods and services produced within the country during a period of time usually a year after discounting for inflation. It is a measure of Singapore’s economic activity or output performance. It can indicate material welfare of an individual. Real GDP divided by the appropriate population gives real GDP per capita. Real GDP per capita is a key measure of the average living standards in Singapore. The strong growth in Real GDP means Singapore is producing more output domestically. It indicates higher income per head, the people can consume more final goods and services and thus improved (material) standard of living. When the economic pie gets bigger, it will facilitate redistribution of incomes. Whereas a contraction of real GDP figure indicates that the Singapore economy has shrunk (e.g.2009-‐Singapore went into a recession) and the people are worse off, having lower per capita income. Current account balance The current account balance is divided into 2 main items: visible balance and invisible balance. Singapore is a small and open economy which is strategically located. The nature of the economy compels it to be trade driven. Total trade makes up more than 300 percent of GDP and net exports about 30% of GDP. GDP=C+I+G+(X-‐M). Thus, any changes in the current account balance have great bearing on the country’s real GDP.
It is important for Singapore to continue having a current account surplus as export is the largest component of GDP. When Singapore records a strong current account, its GDP expands boosted by export revenue. (given that GDP=C+I+G+X-‐M).There will be more income for the people, more consumption and a higher living standards. This is also an indication that the country is not spending beyond its means. However, there should be other indicators on nonmaterial welfare. Some examples are UN’s Human Development Index and MEW to have a more accurate measure of living standards. Mark SchemeL1L2L3A sketchy explanation of Real GDP and current account balance asindicators of living standards in SingaporeAn adequate explanation of both Real GDP and current account balanceas indicators of living standards in SingaporeA good explanation of either Real GDP or current account balance asindicators of living standards in SingaporeA good explanation of both Real GDP and current account balance asindicators of living standards in Singapore1-23-56-8b) Discuss the most appropriate policies that a government could adopt to achieve sustained economic growth. (17) ApproachThe focus of the question is the choice of the most appropriate policies on achieving themacroeconomic goal of sustained economic growth. Discussion on appropriateness willinclude that of effectiveness and suitability. For actual growth to be sustained in the long-run,there must also be increase in potential output. Discuss the mechanism, suitability and theeffectiveness of demand-side and supply-side policies in achieving actual and potentialgrowth. Discuss how well each policy works and their limitations given the different natureand the current state of the economies. Use country examples to illustrate.Brief OutlineDefine actual and potential growth. To have sustained economic growth, there must bepotential growth.
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ST ANDREW’S JUNIOR COLLEGEH1 ECON
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Cost/Benefits/$ Welfare loss MSC =
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more than proportionate fall in qua
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Price S P 1 P 2 D 1 D 2 Market for
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ERP• Works by charging drivers an
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2010 YJC Prelims H1 Paper CSQ1: Hou
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quantity transacted increases and h
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(b) With the help of a diagram, ana
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Hence as long as the West is willin
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Marks Scheme:L3( 7 - 8m)L2(4 - 6m)L
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(d)Consider whether the evidence in
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The higher spending, translating in
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2010 RI (JC) Prelims H1 Paper CSQ2:
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This will increase SOL of Chinese a
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Page 47 and 48: Increase Real output for Asiaproduc
Page 49 and 50: Section B: EssaysMicroeconomics:1.
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Page 53 and 54: With reference to Figure 2 above, (
Page 55 and 56: Conclusion:The future impact in the
Page 57 and 58: ConclusionSummarise and link to par
Page 59 and 60: Explain causes ofan increase in pri
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Page 64 and 65: Take astandConclusionPrice ceiling
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Page 68 and 69: Suggested answer (b)Price elasticit
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Page 72 and 73: Internet broadband connectionFoodEf
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Page 76 and 77: EvaluationE2For a reasoned judgemen
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Page 84 and 85: Therefore the market is said to be
Page 86 and 87: (b) INTRODUCTIONTo address the prob
Page 88 and 89: However, a total ban does not makes
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Page 96 and 97: lower standard of living. This is e
Page 100 and 101: Explain how policies bring about ac
Page 102 and 103: ConclusionTo have sustained actual
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Page 114 and 115: Trade PoliciesIn the light of an im
Page 116 and 117: • Real-‐wage unemployment o
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Page 120 and 121: aggregate demand in U.S. and decrea
Page 122 and 123: Marking SchemeL3Well developed expl
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Page 134 and 135: Illustration:Assumptions:• Only t
Page 136 and 137: (18) 2011 DHS Prelim H2 Paper Q1Sin
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Page 140 and 141: As output increases, real national
Page 142 and 143: oooHigh level of integration in
Page 144 and 145: 2010 IJC Prelim 2010 H2 Paper Q6(a)
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