2015 A Levels Paper 2 Analysis
2015 A Levels Paper 2 Analysis
com/
http://www.facebook.com/tuitiongenius
Instagram & Twitter: eugtoh
Email: [email protected] | SMS: 8182 3036
http://www.tuitiongenius.com/
http://www.facebook.com/tuitiongenius
Instagram & Twitter: eugtoh
Email: [email protected] | SMS: 8182 3036
Government cannot only see this from a microeconomics perspective but also
from a macroeconomics perspective
o In terms of impacts on the labour force & productivity
o In terms of budget position (whether significant subsidies would serve to
worsen the budget position)
Question 2 Comments:
Not a very difficult question to attempt, but probably quite hard to score well at it,
given that the fundamental concepts tested are very simple (it is really demand &
supply!)
We did not cover anything like this in our last few lessons, the concepts tested were
what we would have gone through early in our JC1 lessons. But all the same,
structure and answering skills, we covered them in various questions dealing with
demand / supply / elasticities
Most students would avoid this due to lack of confidence
Question 2 Analysis:
It is easy to give both demand & supply factors, I would say a total of 4-5 factors
would be good, and bring in a mixture of the following
o Taste & Preference
o Income levels
o Size of market
o Price of related goods
o Number of sellers
o Cost of raw materials
o Technological advancements
o Government policy
The second part on evaluating which is the most important factor is the key to
scoring.
If I were the one writing this essay, I would focus on the following factors as
important ones
o Lifestyle changes (the need to be connected)
o Rising affluence (ability to purchase has increased significantly)
o Technological advancements (which has pushed down cost significantly,
allowed mass production)
Question 3 Comments & Analysis:
I have specifically told you all in the last lesson to study Monopoly (in fact it was first on the
guess-list).
As such, I have also covered this extensively in the following:
o Simulated Essay Paper Question 2 (LAST Nov LESSON at Park Mall)
o 2 Essays discussing Monopoly in Micro Econs Workshop
What must be present in your answers?
http://www.tuitiongenius.com/
http://www.facebook.com/tuitiongenius
Instagram & Twitter: eugtoh
Email: [email protected] | SMS: 8182 3036
http://www.tuitiongenius.com/
http://www.facebook.com/tuitiongenius
Instagram & Twitter: eugtoh
Email: [email protected] | SMS: 8182 3036
o Higher housing prices caused by both demand factors (due to low interest
rates, population, incomes)
o Higher car prices
o Foreign immigration policies which has affected labour costs
These are factors which cannot be solved with exchange rate policy,
Instead, other policies could be brought in to solve the varying causes of inflation
o Macro-prudential policies like cooling measures restricting loans, increasing
stamp duties to cool the property market
o Supply side policies with the aim of increasing productivity to mitigate labour
costs
Question 5 Comments & Analysis
Question is asking for a comparison between usage of expansionary monetary policy
vs expansionary fiscal policy
Points that we should see in your discussion
o Explanation of expansionary monetary policy & fiscal policy in a detailed
fashion
o Limitations of using expansionary monetary policy specifically
Liquidity trap
Pessimism / animal spirits
o Point out how these limitations actually affected EU / US during their recent
crisis period
o The fact that they have actually bypassed some of these limitations by using
an unconventional form of monetary policy ; quantitative easing (QE)
o Explain QE and its success / limitations
o Explain how expansionary fiscal policy could have been more direct in
stimulating the economy but subjected to the following limitations
Many countries provide social transfers in their fiscal stimulus
programmes which may tend not to be very helpful since in times of
recession, people tend to save rather than spend
That in the first place many countries today have a significant debt
problem which restricts their hand in the ability to carry out fiscal
stimulus
My comments:
We have covered this extremely extensively during the following lessons
o Economics Essence Workshop
o During our Extra Lessons programme on the lesson covering policies and
also during the lesson where we gave you the statistics of 4 major economies
and asked you to come out with solutions!
o Also covered in our Simulated A Level paper in November!
ALL OF YOU should be more than adequately prepared to score in this question!
http://www.tuitiongenius.com/
http://www.facebook.com/tuitiongenius
Instagram & Twitter: eugtoh
Email: [email protected] | SMS: 8182 3036