Singapore is a prosperous country with limited land and labour. It is commonly used as an example of a market economy. Even so, the Singaporean government intervenes in the economy. For example, it encourages its population to eat two servings of fruit and two servings of vegetables each day.
(a)[2]
Identify the return received by labour and the return received by land.
(b)[4]
Explain how a rise in a worker’s income can influence their mobility of labour.
(c)[6]
Analyse, using a demand and supply diagram, the effect on the market for fruit of greater awareness of the health benefits of eating fruit.
(d)[8]
Discuss whether a market economic system is beneficial for an economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “$Wages$” …