2014 Economics Essays Mid Years – Areas of Study

2014 Economics Essays Mid Years – Areas of Study
I. Areas of Study

Part 1 – Market Failures

  • All forms of market failures – (Don’t draw the diagrams)
  • Imperfect market condition – contributing to market failure (Need draw diagram – MR/AR – slope downward)
  • Positive externalities with diagram – I don’t think externalities will be given
  • Which form of market failures is the most severe?
  • Types of regulation – Definition/Mechanism/Strength and Weaknesses of government regulation
  • Depending factors that will affect how government uses the policies

Part 2 – Cost of Production/Market Structures

  • Characteristics of the four types of market structures
  • How price and output is determined
  • Types of Efficiency
    • Dynamic, Production, Allocative, X-inefficiency, Advantages of EOS
    • Must explain how efficiency will raise consumer welfare (lower price, improve quality of product)
  • Which types of market structures is/are more common?
  • Monopoly – Why do we regulate monopoly? Forms of regulation?

Demand and Supply

  • Just read a few questions that I have given you
  • Suggest that you don’t attempt this question as it is usually complicated and time-consuming!

Part 3

  • Types of unemployment
  • Why government needs to attain low unemployment rate?
  • Which types of unemployment is more impactful to Singapore and which type is Singapore subjected to?
  • How will Singapore solve unemployment differently from US?
  • Study a little of inflation (in case it’s tested)
  • Types of policies – Definition and Mechanism
  • Depending factors in which policies are more effective in solving unemployment/inflation

Part 4

  • Theory of Comparative Advantage (CA) – read the brief description on how it can affect the pattern of trade
  • Reasons for free trade (advantages) & Obstacles for free trade
  • Justifications for Protectionism / Against Protectionism
  • Globalisation – Characteristics
    • Benefits and Detriments
    • Why small economies gain more than large economies?
    • How globalisation affect CA from explaining trade pattern?
    • Why globalisation undermine countries from attaining benefits and suffer the adverse consequences
  • I left out exchange rate – but please study as a policy
  • Effects of Undervaluation – Why undervaluation is not the cause of trade deficit for US? (Only these areas for forex)
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