Homework to be completed in March Hols (10 to 16 March 2008)

1) Complete the Independent Learning Package on Topic 5: Unemployment

• Go through the audio-visual CDRom, together with the lecture notes for the topic thoroughly. Seek help from your peers or tutors, if necessary.
• Attempt the Online MCQ Assessment in Litespeed (15 questions) and submit online by Sunday 16 March 2008 11.59pm

2) To prepare for the lecture test postmortem when school reopens, rewrite the following essay from the lecture essay test on Determination of National Income in Term 1 Week 10 (Note that this task is compulsory if you have failed the test - Do correct your mistakes based on the remarks & comments given in your returned answer script):

There was a spate of good news for Singapore in 2007 such as the country attracting a record of $16.1b of investments, tourist arrivals hitting a record of 10.3 m, the government forking out $1.86 b for the new Sports Hub and a successful bid to host the F1 race. Unemployment was at an all time low of 2.1%. However, the inflation rate was at an all time high of 4.4% in December and there were fears of a US recession.

To what extent is rising aggregate demand beneficial to the Singapore economy? [25]

3) Prepare Tutorial 3: CPI and Inflation:

• Review your Topic 3 lecture notes for any areas that you do not understand. Make sure you are thoroughly familiar with the "Causes" and "Consequences" of Inflation, taking note of real life examples given.
• Prepare the essay questions in Tutorial 3 for when school reopens.

4) Attempt the following revision essay questions based on the previous 3 topics. Do up either full-length answers (Self-timed in 45mins) or detailed essay outlines (with relevant diagrams and analysis as well as application to context) (Note that this task is optional but you are strongly encouraged to attempt the questions if you have failed either one or both of your previous class tests! Answers will be provided in Litespeed later):

Essay 1: Market Failure
"To prevent overfishing, the government stipulates the length of boats and time for fishing. This has resulted in fishermen using wider boats and better technology to increase their catch."

(a) Explain why overfishing may be a form of market failure. [10]
(b) Discuss whether government regulation is adequate and desirable in solving the market failure stated in (a). [15]

Essay 2: National Income Accounting and Determination of NY
"India's economic performance would seem remarkable. Since opening up to the global economy in 1991, the country has achieved average annual economic growth of about 6%. The proportion of people living below the poverty line fell and its average GDP per head, adjusted for purchasing power, has doubled. ".......................The Economist, 3 March 2005

(a) Explain how "opening up to the global economy" has benefited the India economy. [10]
(b) To what extent does the above quotation reflect an improvement in India's living standard? [15]

5) Be prepared for the Upcoming Econs assessments:

• Lecture Test (Essay) in T2 Wk 3: Inflation (Causes & Consequences)
  
• Lecture Test (Case Study) in T2 Wk 6: Macroeconomic Variables (GPL, EG, Unemployment & BOP), Problems & Objectives (Topics 3 to 7)
• Mid-year Exams (Format to be confirmed) in T2 Wk 9: All topics from Year 2 (up to Monetary Policy)