Free Essay Answers

Macro-Economics Tuition in Singapore

Here are some macroeconomics essay questions & suggested answers to help you build a strong understanding in JC H2/H1 Economics.


iECONOMICS Self-Help Portal

A Level Macro Goals Essay

To be considered successful, an economy needs to achieve long-term economic growth and stability. Explain this statement. [10m]

HCI Prelims 2013

(a) Explain the main causes of unemployment in Singapore in the recent years. [10m]

MI Prelims H2 2013

(b) An increase in inflation levels is more likely to cause problems for the domestic than the external sector of the Singapore economy. Discuss. [15m]

Balance of Payment Essay

Explain the potential causes of a balance of payments deficit on current account. [10m]

A Level Economics Exam 2017 – Macroeconomics

[2017 Q4]

High rates of unemployment remain a major issue in many economies of the world. An understanding of various causes of unemployment is needed in order for a government to decide on the economic policies that would help its economy achieve full employment.

Discuss the various causes of unemployment and the economic policies that would help to achieve full employment in today’s globalised world. [25]


[2017 Q5]

Singapore is considered to have a high standard of living, cost of living and a strong overall macroeconomic performance.

(a) Explain the link between the standard of living, the cost of living and the macroeconomic performance of a country. [10]

(b) Discuss the economic policies which might have resulted in Singapore arriving at this position. [15]


[2017 Q6]

The Singapore economy grew by 1.8% on a year-on-year basis in the second quarter of 2015, sharply lower than the 2.8% growth in the preceding quarter, the Ministry of Trade and Industry (MTI) announced on Tuesday 11 August 2015.

(a) Explain the internal and external factors that are likely to have contributed to this slowdown in the economic growth rate. [10]

(b) Discuss whether the policies aimed to increase the economic growth rate might cause difficulties for Singapore’s economy. [15]

A Level Economics Exam 2016 – Macroeconomics

[2016 Q4]

‘The overall Singapore government budget for Fiscal Year 2013 is estimated to have recorded a surplus of S$3.9billion (1.0% of GDP)’

Source: Recent Economic Developments in Singapore, 6 June 2014, MAS

Assess the likely impact of the budget surplus on the Singapore economy, both domestically and internationally. [25m]


[2016 Q5]

(a) Explain the macroeconomic policy decision-making is made more difficult by possible conflicts between government objectives. [10m]

(b) Assess the relative effectiveness of the alternative macroeconomic policies that the Singapore government could adopt to maintain a low rate of unemployment. [15m]


[2016 Q6]

Between 2012 and 2013 the number of Singapore dollars required to buy US Dollars and Chinese Renminbi increased by 3.5% and 6.6% respectively, while the number of Singapore dollars required to buy Japanese Yen and Malaysian Ringgit fell by 15.2% and 3.5% respectively. (Source: MAS)

(a) Explain how an appreciation of a country’s currency might affect the current account of its balance of payments. [10m]

(b) Discuss the likely overall effects of the changes in the exchange rate in 2012-13 on Singapore’s domestic economy. [15m]

A Level Economics Exam 2015 – Macroeconomics

[2015 Q4]

In its September 2013 Recent Economic Developments Statement, the Monetary Authority of Singapore noted that inflation was expected to rise moderately. Strong GDP growth in Q2 2013 was mainly due to increased output in the manufacturing and trade-related service sectors with a slowing of growth in private consumption. There was expected to be continued strong pressure from persistent tightness in the labour market caused by shortages in labour supply accompanied by steady expansion in demand for goods and services from the US, Japan and the Eurozone.

(Source: Recent Economic Developments in Singapore, MAS, 5 Sep 2013)

(a) Explain how the above-mentioned factors might have caused the rate of inflation to rise in Singapore. [10m]

(b) Discuss whether exchange rate appreciation should remain the most important policy instrument in controlling the rate of inflation in the Singapore economy. [15m]


[2015 Q5]

During the recent world-wide recession, many European countries chose low interest rates as a monetary policy approach rather than adopting demand-led fiscal policy stimulation. At the same time, with most of these countries’ governments introducing large cuts in government expenditure in order to reduce their budget deficits, a fiscal contraction actually resulted.

Discuss which policy approach is appropriate for a country during a world-wide recession. [25m]


[2015 Q6]

“We are restructuring to become more competitive, not less.” Mr Lim Hng Kiang, Minister for Trade and Industry, The MTI Times, Committee of Supply 2013

(a) Explain why an economy’s comparative advantage might change over time. [10m]

(b) Assess the measures adopted by the Singapore government to improve its global competitiveness. [15m]

A Level Economics Exam 2014 – Macroeconomics

[2014 Q4]

In 2011 Singapore’s GDP at 2005 prices grew by 4.9%, the total population grew by 2.5%, inflation (as measured by the consumer price index) was 5.2% and overall unemployment stood at 1.9%.

(Source: http://www.singstat.gov.sg/stats/latestdata.html, accessed 30 January 2013)

Discuss the limitations of these statistics in both assessing the change in the standard of living in the Singapore economy in 2011 and comparing it with that of other economies. [25m]


[2014 Q5]

The following data relate to the Singapore economy in 2011.

(Source: http://www.singstat.gov.sg/stats/latestdata.html, accessed 30 January 2013)

(a) Economies consist of several key sectors such as households, firms, government and the rest of the world. Explain the relative importance of these key sectors of the circular flow of income in determining the national income in Singapore. [10m]

(b) Discuss the likely effects on Singapore’s national income and its components when its exchange rate appreciates. [15m]


[2014 Q6]

Since the economic crisis of 2008, rates of economic growth across the world have differed considerably.

(a} Explain the key determinants of actual and potential economic growth. [10m]

(b) Assess the alternative economic policies that the Singapore government could adopt to maintain a sustained rate of economic growth into the future. [15m]


[2014 Q1]

In order for specialisation to be beneficial, it must be accompanied by exchange.

(a) Explain how benefits to the economy can arise from specialisation and exchange. [10m]

(b) Very often these benefits are not fully achieved in domestic and international markets. Discuss the reasons for this. [15m]

A Level Economics Exam 2013 – Macroeconomics

[2013 Q4]

Governments have aims in relation to unemployment, economic growth and the balance of payments.

(a) Explain the consequences of failing to achieve these aims. [10m]

(b) Discuss whether failure to achieve these macroeconomic aims is more likely to be caused by domestic or international factors. [15m]


[2013 Q5]

On 1 September 2011, the Monetary Authority of Singapore (MAS) reported that inflationary pressures remained strong because of the tight domestic labour market, high consumer spending and rising global commodity prices.

(a) Explain how the factors mentioned above will lead to inflationary pressures remaining strong in Singapore. [10m]

(b) Discuss alternative economic policies that the Singapore government might consider adopting to alleviate these inflationary pressures. [15m]


[2013 Q6]

On 14 October 2011 Premier Wen Jiabao of China called for joint international efforts to combat rising trade protectionism, which he said was damaging the world economy amid on-going global economic turbulence.

Discuss whether the use of protectionistic policies can ever be justified during a period of worldwide economic recession or whether governments should follow Premier Wen’s advice and adopt a policy of greater free trade. [25m]

Essays by Topics: Macroeconomics, SOL, CFY, Multiplier

[HCI 2016]

(a) Explain how the relative importance of the components of the circular flow of income for a small and open economy might be different from a large and less open economy. [10m]

(b) Assess the usefulness of the components of the circular flow of income to compare different countries’ standard of living. [15m]


[RI 2016]

In 2014 Singapore’s GDP at 2010 prices grew by 2.9%, the total population grew by 1.3%, inflation was 1% and overall unemployment stood at 2%.

Source: http://www.singstat.gov,accessed July 2016

(a) How would you assess whether the standard of living in Singapore has risen? [10m]

(b) Discuss whether the openness of the economy helps in achieving higher standard of living in Singapore. [15m]


[TJC 2015]

According to data from the World Bank, 2014 GDP (PPP adjusted) figures were US$17.6 trillion and US$17.4 trillion dollars for China and USA respectively. However if GDP statistics are not adjusted for cost of living, the U.S. economy still dwarfs China’s, at US$17.4 trillion versus US$10.4 trillion.

(a) Explain the indicators that could be used to complement or replace GDP, when measuring the various aspects of standards of living. [10m]

(b) Discuss the problems of using PPP adjusted GDP in making international comparisons of the various aspects of living standards between these two countries. [15m]


[NYJC 2015]

Pump priming is an action taken by the government to stimulate an economy, usually during a recessionary period.

(a) Explain why such a measure is more effective when a greater portion the extra income earned by households is consumed than withdrawn. [10m]

(b) Assess the view that a large increase in national income is always desirable. [15m]

Essays by Topics: Macroeconomic Goals and Policies

[AJC 2016]

“Inclusive growth is economic growth that creates opportunities for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society.”

Source: http://www.oecd.org, accessed on 10 July 2016

(a) Explain why a government might aim to achieve inclusive growth. [10m]

(b) Evaluate the measures adopted by the Singapore government to achieve inclusive growth. [15m]


[DHS 2015]

UK is in battle over stagflation. Growth has slowed due to its austerity measures and the European debt crisis, while unemployment and oil prices have risen. Economists consider stagflation particularly tough to battle.

(a) Explain the key causes of stagflation in UK. [10m]

(b) Discuss the most appropriate policy that a government could adopt when confronted with stagflation. [15m]


[VJC 2014]

a) Explain the causes of disequilibrium in the balance of payments. [10]

b) Do you agree that the Singapore government focus should always be to correct a balance of payments deficit? [15m]

Essays by Topics: International Trade and Globalisation

[NJC 2016]

(a) Explain why a small economy should embrace globalisation. [10m]

(b) Discuss whether protectionism is justified during times of worldwide recession. [15m]


[NYJC 2015]

Explain how globalisation has changed Singapore’s pattern of trade and discuss whether Singapore is among the economies that have most to gain from globalisation. [25m]


[AJC 2013]

(a) Explain the economic case for free trade between countries. [10m]

(b) Discuss whether governments should be concerned about the changes to a country’s balance of paymentsposition brought about by globalisation. [15m]