| University | National University of Singapore (NUS) |
| Subject | Economics |
Question 1 (Total 6 marks)
(a) A factory is categorized under ‘Land’ as a factor of production. True or false? Provide a reason for your answer. (Marks will not be awarded for merely stating if the statement is true or false).
(2 marks)
(b) A drop in the price of computer chips will increase the quantity demanded of the chips. True or false? Provide a reason for your answer. (Marks will not be awarded for merely stating if the statement is true or false).
(2 marks)
(c) The quantity demanded for petrol will increase in the present when consumers foresee that its price will rise in the future. True or false? Provide a reason for your answer. (Marks will not be awarded for merely stating if the statement is true or false).
(2 marks)
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Question 2 (Total 4 marks)
Tropical storms have destroyed coffee plantations in coffee-producing countries. Using an appropriate market diagram, explain the effects of tropical storms on the international coffee market.
(4 marks)
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