2011 H2 Economics Term 4 Revision Week 2 2009 A-levels 1.

. Governments around the world protect consumers against market failure due to market dominance. (a) (b) Analyse, with supporting examples, how market dominance might lead to market failure. [10] Assess the extent to which market dominance, rather than any other potential market failure, is the major cause of government intervention in the markets for goods and services within Singapore. [15]

VJC + AJC 2. Singaporean households across all income groups earned more money last year, said the Department of Statistics. In fact, its findings showed the average monthly household income rose by over 9 percent, the fastest rate of growth in 10 years. But the income gap between the rich and poor has also widened. Channel News Asia 13 Feb 2008 (a) (b) Explain the main sources of income inequality in Singapore. [10]

Assess the various policy measures that the Singapore government currently adopts to reduce inequality in income distribution and consider whether new policies will be required. [15] the market for [12]

2010 A-levels 3 (a) Explain why government intervention is advocated in both public goods and for goods where externalities are present. (b)

In the UK, entry to national museums and art galleries is free of charge and tickets to see the opera are heavily subsidized. In contrast, in Japan, entry to national museums and art galleries comes at a high price and a ticket to see the opera is among the most expensive in the world. Assess the economic cases for these two different approaches [13]

RI 2010 Prelims 4 Music recording companies have been plagued with the issue of illegal distribution of their music and of lost sales from their digital recording media like CDs. On the other hand, consumers have been willing to pay for online music services by Apple ITunes to download songs of their preference for a price of $0.99 each. (a) Distinguish between private goods and public goods and consider whether digital content is a public good. [12] (b) Discuss the effectiveness and desirability of protecting intellectual property rights. [13]

MJC 2010 Prelims 5 Assess the view that the Singapore government should use taxes rather than any other economic policies when dealing with the market failure associated with negative externalities. [25] Instructions to students: Humanities Room & LT3: Prepare detailed essay outline for questions 1 & 2. LTs 4 & 5: Prepare detailed essay outline for questions 1, 2 & 5. LTs 1 & 2: Prepare detailed essay outline for all questions