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Discuss the extent to which monopoly is a realistic market structure in Singapore.

The characteristics of a monopoly Show long run equilibrium of a monopoly. (Diagram) Monopolies are bad for the consumer: Explain the negative consequences of a monopoly Therefore consumers are disadvantaged. Monopoly is more beneficial for the consumer: Explain the advantages of a monopoly Monopoly as a realistic market structure in Singapore Students should discuss the …

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“Inflation is harmful to an economy and hence it should be the priority of the Singapore government to reduce inflation.” Discuss.

Inflation has many adverse effects which is harmful to an economy. This includes adverse consequences on economic growth, employment, balance of payment and exchange rate. à currency depreciate à worsen imported inflation v  Explain that mild demand-pull inflation may not be harmful to the economy. (Optional) Hence it can be seen from the above that …

“Inflation is harmful to an economy and hence it should be the priority of the Singapore government to reduce inflation.” Discuss. Read More »

Discuss the significance of the multiplier in influencing macroeconomic policy decisions to achieve economic growth.

Introduction Macroeconomic policy decisions are made by governments for the purpose of achieving specific macroeconomic goals, namely full employment, price stability, high and sustained economic growth, exchange rate stability, and a healthy balance of payments (BOP). These decisions  can be affected by the size of the multiplier as well as other factors such as the …

Discuss the significance of the multiplier in influencing macroeconomic policy decisions to achieve economic growth. Read More »

Compare how exchange rates are determined in Singapore and USA.

Intro: Recognize that there are some similarities and differences between how exchange rates are determined in both Singapore and USA. The similarities can be broadly classified as the similar impacts that the free market mechanism has on both exchange rates and the key difference is the different exchange rate systems for both countries. Body: Similarities: …

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Discuss whether developing countries have more to gain from globalisation than developed countries.

developing economies has been deteriorating. This means that year by year they have to export more and more goods (especially primary agricultural products) to support a given volume of imports. As such, their standard of living will not rise as fast. The problem of weak TOT is due to the income inelastic nature of demand …

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Explain how market dominance and imperfect information can lead to market failure.

Introduction Market failure occurs when the operation of the market fails to achieve economic efficiency in the allocation of scarce resources i.e. it is possible to change the existing resource allocation to make someone better off without making someone else worse off. There are a few causes of market failure including market dominance and imperfect …

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Assess whether government regulation is adequate and desirable in resolving the problem of traffic congestion

Introduction Market failure occurs whenever the price mechanism fails to allocate resources in a way that is deemed as socially desirable. As such, the market does not provide the ideal or optimal amount of a particular good. An optimum resource allocation cannot  be  achieved with the existence of externalities. Negative externalities arise whenever the production …

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Explain whether expressways and traffic lights are examples of public goods.

Public goods are those goods or services that are non-rivalry and non-excludable in consumption. A.             EXPRESSWAYS Rivalry Excludability charges can be collected for the use of expressway, i.e. non-excludability in consumption. This can be done either manually or using the ERP gantry system. e.g. labour costs or the high initial cost of building ERP gantry. …

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