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JC Economics Tuition Model Essays Final Intensive Preparation

Gearing up for the exams

In our final intensive revision, our economics tuition focuses on the development of JC economics essays that will be of great help to our students in their preparation for GCE A Level Examination for Economics. These questions will provide insight on the types of questions to prepare for the final year examination and we hope these JC Economics essays will be of great help to our JC students and other students who need help at this stage.

We prepare you for grade A with the best SG JC Economics Tuition

If you are not sure on how you are going to prepare for this year GCE A Level Examination, we would advise you to join in our economics tuition which will focus on intensive revision and give you the preparation that will poise you for grade A. Learn how we shape and prepare you for academic success for this year GCE A Level Examination for Economics.

JC Economics Tuition Model Essay on Market Structures

Question 1
(a) Explain how economies of scale determine the market structure in which firms operate in the real world. (10)

Definition of Economies of Scale
State that this economics principle will affect the operation of the firm as it affects the size of the business, the cost of production and how the firms will compete in the industry.

Main body
1) Explain how the concept of EOS is reaped by firms when the firms increase production
– how the internal EOS is reaped through the different types of EOS
– how the average cost will decrease as output increases (draw diagram and describe)

2) Explain how the firm will behave in the imperfect market condition due to the influence of EOS
– the firm will increase the size of operation to lower average cost of production
– the firm will reap the advantage of the lower cost of production to lower price to increase its competitiveness
– the firm will use the advantage of EOS in lowering AC to use it as a barrier to entry to increase competitive

3) Explain how the market structure will be formed based on the influence of EOS
-Firms will strive to big in their size of production and this would mean that the industry will be very competitive – the firm will use the advantages of large scale operation to increase market share – consequently the market will have a high market concentration ratio – become oligopoly with few firms or a natural monopoly
-Price leadership model will develop as the firm which can lower AC will be able to lower price and become the market leader in the oligopolistic market
-On the other hand, the firms in the industry which may not reap extensive will have small scale of production- the industry will be in monopolistic competitive market
-For the firm which is natural monopoly, it will be able to lower AC to a large scale level of production and enable it to price the good equal to marginal cost.

The firm will end up behaving like firms in the oligopolistic and monopolistic market structure as it seeks to create stronger BTEs with cost saving and larger output.

Question 1
(b) Discuss the extent on how economics of scale will influence the price and output decision for firms in the imperfect market. (15)

State that the price and output decision of the firm in the imperfect market structure is based on profit maximization and it may be influenced by the economies of scale as the cost of production is affected.

Main Body
1) Explanation on the firms in the imperfect market structure

2) Explain the notion of profit maximization

3) Explain how the price and output is set based on profit maximization
– Economic causation, diagram and description of diagram

4) Explain how the concept of EOS will affect the average and marginal cost
– How MC and AC will shift due to internal EOS
– How the AC will shift due to external EOS

5) Explain how the EOS can be used a barrier to entry to raise the degree of market power to reduce the competition in the industry and thus affect proce and output
– Explain how it raise market power
– Explain how it affects the MR and AR

6) Analysis of the impact of EOS – can be on both cost of production and the revenue aspect as its influence how the profit maximization affects the price and output

The concept of Economies of Scale is critical in explaining how the firm will behave and affects the revenue and cost of production and degree of market power.Tthis impact will give rise to an extensive influence on price and output decision for the firms in the real world which operates in an imperfect market condition.

JC Economics Tuition Model Essay on Market Failures

Question 1
Market failure is often worsened by government failure. Discuss the extent to which this is true in your country. [25]

In Singapore, the occurrence of market failures is seen in many industries and this calls for government intervention to ratify the industries so as to ensure that the industries attain efficient allocation of resources to maximize the net social benefit for the society. However, the intervention by the government may not be effective as there are limitations of government policies and circumstances for market failures. Therefore, it is imperative for countries

Main Body
1) Explain briefly how market failures will occur in Singapore.
– Identify the main forms of market failures in Singapore

2) Explain briefly how government intervention will take place in the various forms of intervention

3) Explain why government intervention will lead to government failures
– Reasons for government failures
(Time lag, cost of financing, asymmetric information, inefficient government, temporal solution, lack of expertise in the economy)

4) Examine why this situation of government failures will not occur in Singapore
a) Situation where the government failures will not occur
– Cost of financing – Singapore has huge reserves
– Inefficient government – statutory board and public service are quite efficient, low degree of corruption
– No lack of expertise as the government can engage foreign expertise to provide the goods and services

b) Situation where the government failure will occur
– Time lag – regulation and production process may be delayed due to unforeseen circumstance and complication of work – some MRT projects may not be done effectively and need more regulation
– Asymmetric information will always occur as the information about the population will change in very urbanized city with extensive social and economic activities like Singapore
– Temporal solutions – it is difficult for the government to set policy that will solve the problem permanently as demographics always change and social and economic activities are vibrant in Singapore

c) Analysis – what are the key determinants will affect this extent of government failures to occur

The understanding of the possibility of government failures is imperative as it will help economists and policy-makers in the country understand how we can be more effective in preventing the occurrence. In doing so, the intervention made by government to ratify market failures will be able to adjust industries to attain social efficient resource allocation so that the society will attain maximization of net social benefit gain.

JC Economics Tuition Model Essay on Aims of Government and Policies

Question 1
Discuss whether small and open economies such as Singapore should adopt different economic policies from those of large economies overcome the problems of global recession [25]

The occurrence of global economic recession will be of great and extensive impacts on small and open economy and this can be seen on how the recession affects Singapore seen in terms of the macroeconomic aims and would be challenging to Singapore. In response to these challenges, it is natural for the government of Singapore to introduce unique and appropriate policies to overcome the recession as its nature of the economy is different in many ways as compared to other countries.

Main Body
1) Explain the features of Singapore Economy based on our nature of economy being small and open

2) Explain how the global recession will affect Singapore and create economic woes that will affect Singapore

3) Explain why the government of Singapore needs to use foreign exchange rate management policies, FTA and supply side management policies
– Evaluate the effectiveness of the FTA, supply-side management polices and exchange rate management policies work to solve the economic problems due to global economic recessions

4) Explain why other types of policies like monetary policy and fiscal policy may not be effective (Why these policies are more suitable for big economies)

5) Identify the main determinants to explain which will determine the choice of policies


JC Economics Tuition Model Essay on International Trade and Globalization

Question 1
Discuss whether Free Trade Agreements or protectionism is a more viable solution to overcome economic problems amidst a global economic recession. [25]

Amidst the current global economic recession, many countries are experiencing many aspects of economic woes. This has led to the response in adopting trade policies to overcome the external shocks posed by this global economic downturn. However, the debate lies in the types of trade policies to be adopted, either free trade agreement or protectionism.

Main Body
1) Explain how the global economic downturn will affect the respective nations, small and large economies in terms of the aims of the government

2) Explain how free trade agreement will help countries to solve the economic woes of the countries

3) Explain how protectionism will help the economics to solve the economic woes

4) Explain why free trade agreement is effective in helping economies in solving the economic woes, especially for the small nations

5) Explain why protectionism is effective in helping economies in solving the economic woes, especially for large economies

6) Analyze the key determinants of the impacts – size of domestic demand and degree of reliance on external demand for market and resources, size of multiplier

The given situation will explain why countries need to use trade policies and decide on which form of trade policy will be more appropriate. Free Trade is a long term solution while protectionism is more for the short term.