This shows significant intervention by Chinas central bank to sell the yuan in the process acquire foreign reserves in order to keep the yuan undervalued, thus suggesting that Chinas govt is a currency manipulator. The inefficiency of this system was revealed starkly at independence. In such a situation, equilibrium price and quantity do not respond to changing costs which results in allocative inefficiency. India does not have comparative advantage in the production of whiskey as it is unable to compete against foreign competitors. We know it cuts into current living standards. Hence, it is likely that the demand for electricity has increased despite an increase in its own price as households and firms will be substituting natural gas with electricity due to the greater increase in price of natural gas compared to electricity.
As the Asian economies grow, theyll be importing more from the West. This involves increasing expenditure on human capital and strategic alliances with firms that can make use of such labour, by offering ‘supply side support’. Increase foreign reserves must mean that Chinese authorities are selling Yuan increase SS of Yuan in FX market and purchasing foreign exchange increase DD for FX over the years to exert downward pressure on the value of the Yuan. Trade in goods increased o keeps prices low – freer movement in capital flows o increase in FDI – freer movement in labour flows o increased factor mobility? This weakens the effectiveness of FP as a DD management tool. Oligopolistic markets enjoy market power. Disadvantages of globalisation growing doubts is well founded – increase import competition?
This represents allocative inefficiency as natural gas is not allocated to the sstudy bidding market. Hence, allocative inefficiency is ecins. Extract 2 However, between March and Octoberit could be reasoned that the supply of natural gas to the British market had increased because of the opening of a new pipeline from Norway. Body Explain a variety of market structures: Q2 Firms pricing and output decisions depend on barriers to entry and the behavior of competitors a Explain why barriers to entry are a key determinant in firms pricing decisions.
Based on extract 6, India has imposed tariffs on imported whisky causing such whisky to be csse times the price of local whisky. Evaluations should look at the effectiveness as well as efficiency. Internally labour was upgraded by retraining older workers and equipping new workers with more saleable skills in their schooling and higher education. Holding other factors constant, an increase in price of electricity will result in a significant change in quantity demanded of electricity – Using concept of CED?
Establish what is meant by globalisation: Introduction – Economic efficiency comprises – Productive efficiency? But protection might still be justified as long ecns it is only for the short term to enable the industry to decline gradually rather than letting the industry collapse which will create structural unemployment, given that Czse workers are likely to be occupationally immobile and require time to acquire new skills to work elsewhere.
UK government took steps to privatise the energy market. If China is indeed dumping, then action to prevent dumping will be justified as it protects EU consumers in the LR where by dumping had succeeded in increasing Chinese producer power in the EU market.
Overview Part a requires explanation whereas b requires evaluation. 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. Good answers would have discussed some of these constraints and limitations in the main body and may reiterate and reinforce the case they are making by focusing on at least 2 economies to round up the discussion.
U2 are required to possess some knowledge of actual policies undertaken by the Singapore government to address these market failures. The motive is often to drive domestic competitors out of the market with the aim of establishing monopoly power in the future. While explaining how the various policies may encourage actual and potential growth, the answer should also address potential limitations of the various policies and also the constraints of the nature of the economy.
GCE A Level H2 Economics – Paper 1 解题方式_百度文库
Hence, the UK fuel market remains an example caze market failure. Body There is a need to contrast between a market structure with strong barriers to entry versus one with low or no barriers to entry and how they affect prices.
This shows significant intervention by Chinas central bank to sell the yuan in the process acquire foreign reserves in order to keep the yuan undervalued, thus suggesting that Chinas govt is a currency manipulator.
Also, the Indian whisky industry need not necessarily collapse if the tariffs are removed econa it could still compete on non-price level.
To manipulate the current account the S’pore government by and large does not use: No – The high and rising consumption of M as seen in the table is not just due to stury trade practices in the global arena, it is also due to loose lending policies in the US.
Body There is a need to contrast between a market structure with strong barriers to entry versus one.
H2 Level H2 Economics A Level – Paper Examine case materials to support market failure: It is very important to show that capital account policies have eventual current account consequences.
This will lead to a more than proportionate increase in the qty demanded of the recorded music.
H2 Economics Case Study Questions
Diagrams are encouraged for such questions. CED of electricity and other fuels is positive? Do not suggest that the exchange rate caused the BOP to strengthen.