Discuss the view that an exchange-rate centred monetary policy is more appropriate than supply-side policy in mitigating a deteriorating Balance of Payments of a country.
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Discuss whether there is a need to change the policies adopted by the Singapore government to deal with market failure in the healthcare industry.
From the stand of the government, the policies to provide healthcare to society are i) to encourage consumption of healthcare so that the socially optimal level of consumption can be achieved. ii) Overcome the information failures linked to merit goods like healthcare and iii) on grounds of equity as the government believe that consumption should
Explain the market failure in the healthcare industry.
Market failure is the failure of markets to achieve allocative efficiency. The market failure in healthcare industry is caused by several factors like the failure to take into account positive externalities (the external benefits occur when third parties benefit from the consumption/provision of the service), consumers not being the best judge of their own welfare
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“The model of monopolistic competition best explains firm behaviour and performance in Singapore”. Discuss.
Introduction Monopolistic competition is a market structure where there are many firms selling a differentiated product and entry barriers are low. This structure gives rise to particular firm behaviour and performance. The behaviour of a firm pertains to price and output determination, manner of competition and tendency to engage in R&D. The performance of a
Explain why it is important for a country to attain its macroeconomic goals.
Economic growth means that national income increases. Ceteris paribus, this means that people’s purchasing power has increased. Hence, they are able to buy and enjoy more goods and services, leading to a rise in their standard of living. Economic growth means that government can collect more tax revenues to finance expenditure on infrastructure, education and
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Discuss the extent to which being a small and open economy affects the policy decisions to achieve price stability and full employment in Singapore.
Introduction Singapore has a small population of about 5 million people as well as a small geographical area of only 704 km sq. This disadvantaged her in terms of the availability of resources and size of domestic market. Due to these constraints, the Singapore economy has to be open which means that the country is
Discuss the extent to which protectionism can help developed nations to correct the balance of payments problems arising from the emergence of developing nations.
Synopsis: Students are expected to provide detailed illustration of how various protectionistic measures, such as tariff and quota, can be implemented by developed countries to correct the BOP deficit. Adequate limitations of such measures in correcting BOP deficit must be discussed, especially the issue of loss of CA by developed nations. Students are to provide
Discuss the impact of falling domestic interest rates and rising labour productivity on the Singapore economy.
1) Explain causes of falling interest rates and rising labour productivity briefly Falling interest rates: Since the MAS targets Singapore’s exchange rate as their primary monetary policy tool, they give up control over the interest rate. Two things affect the interest rate in Singapore which has a very open economy with a well-developed financial system:
Analyse, with examples, the main causes of market failure in Singapore in recent years and the effectiveness of government responses.
Intro Explain Market Failure Explain causes of market failure Nature of Singapore economy Body Identify 3 causes of market failure faced in Singapore recently, related to globalisation such as: Explain each cause in detail: Conclusion
Discuss whether monopolies should be disallowed on the basis that they exploit consumers.
Introduction exploiting consumers Thesis: Monopolies exploit consumers, and hence should be disallowed. Antithesis: Monopolies can actually bring benefits to consumers, and should be allowed to persist. Synthesis: