Singapore is a high-income country facing shortages of land and labour. It is commonly used as an example of a market economy. However, the Singaporean government still intervenes in the economy. For instance, it promotes the idea that people should eat two servings of fruit and two servings of vegetables per day.
(a)[2]
Identify the reward received by labour and the reward received by land.
(b)[4]
Explain how a rise in a worker’s income may affect their mobility of labour.
(c)[6]
Analyse, using a demand and supply diagram, how greater awareness of the health benefits of eating fruit will affect the market for fruit.
(d)[8]
Discuss whether a market economic system benefits an economy or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The reward for labour is Wages” …