GCE A LEVEL H3 ECONOMICS 9808_2015

8/12/2019 GCE A LEVEL H3 ECONOMICS 9808_2015

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MOE & UCLES 2013

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Singapore Examinations and Assessment Board

ECONOMICS

Higher 3

(Syllabus 9808)

CONTENTS

Page

INTRODUCTION 2

SYLLABUS DESIGN 2

SYLLABUS AIMS 2

ASSESSMENT OBJECTIVES 2

ASSESSMENT FORMAT 3

SYLLABUS CONTENT 4

RECOMMENDED READING 8


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9808 H3 ECONOMICS (2015)

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INTRODUCTION

The H3 Economics syllabus provides candidates who have exceptional interest and ability in the subjectopportunities to satisfy their intellectual curiosity in economics as a discipline. It challenges candidates toinvestigate controversies surrounding economic issues on strategies of firms, efficiency, market failure anddevelopments in regional and international economies. The syllabus provides a foundation for academicengagement in economics at the tertiary level.

SYLLABUS DESIGN

The H3 syllabus is designed on the assumption that candidates have knowledge and understanding ofeconomics at H2 level. It is pitched at a level higher than that of the H2 syllabus. It builds on thecompetencies acquired in economics at the H2 level and requires candidates to demonstrate greater depthof analysis and evaluation. The syllabus aims and assessment objectives are an extension of those stated inthe H2 syllabus. The H3 syllabus is based on about 120 hours of teaching and self-directed independentlearning.

SYLLABUS AIMS

The syllabus aims to develop in candidates the ability to:

1. critically analyse and evaluate economic concepts and theories, and the methods of inquiry used byeconomists;

2. apply appropriate tools of economic reasoning to offer hypotheses about the underlying nature ofeconomic issues and problems;

3. critically and independently assess the effectiveness of policy decisions; and

4. formulate and present reasoned arguments and strategies to address economic issues and problems.

ASSESSMENT OBJECTIVES

Candidates are expected to demonstrate the ability to:

1. identify underlying problems, offer hypotheses, examine given economic information and make

independent judgement of the validity and quality of information from a variety of sources;

2. critically analyse and evaluate economic concepts and theories, and methods of economic inquirythrough an in-depth understanding of economic issues and problems;

3. critically assess the effectiveness of policy decisions;

4. present reasoned arguments as well as strategies to address economic issues and problems, withreference to supporting data and/or economic concepts and theories.


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ASSESSMENT FORMAT

There is only one paper for H3 Economics and the duration is 3 hours and 15 minutes. There will be twosections within the paper.

H3 Economics (3 hours 15 minutes) (100%)

Section A (30%)

Answer 1 compulsoryquestion (with parts).

The question carries atotal of 30 marks.

Candidates should spendapproximately 1 hr and 15min on Section A (inclusiveof reading time).

Resource-Based Question

Candidates are required to process a range of resource materials presented,which include text, tabular or graphical statistical data, some of which maynot be relevant. They are expected to examine the quality of data andrelevance for use in their responses. Questions may require candidates toidentify underlying economic issues and problems, offer hypotheses, presentreasoned arguments or propose strategies to address them.

Section B (70%)Answer 2 questions from achoice of 6.

Section B carries a total of70 marks and eachquestion carries 35 marks.

Candidates should spendapproximately 2 hrs onSection B.

Essay QuestionsCandidates are required to critically analyse and evaluate economic conceptsand theories, and methods of economic inquiry through an in-depthunderstanding of economic issues and problems and critically assess theeffectiveness of policy decisions where possible. Questions may requirecandidates to integrate knowledge from the different themes.


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SYLLABUS CONTENT

The syllabus content provides a thematic approach to the understanding of economics. The concepts,principles and issues specified in the syllabus should be taught in the context of the Singapore economy, theregional or wider international economy, where appropriate. The inter-connectedness of economic conceptsshould be highlighted, and real world examples should be used, where appropriate. Candidates areexpected to demonstrate a broad conceptual overview and critical understanding of economics as adiscipline.

1: Study of EconomicsThis theme provides an opportunity for candidates to make an in-depth study of economics as a discipline.Candidates should be able to examine the significance and nature of economics in the real world context andevaluate the methods of economic inquiry.

Syllabus Content Candidates should be able to:

1.1 Significance and Nature of Economics

a. Significance of economics

b. Nature of economics as a socialscience

1.2 Economic Methods

a. Inductive and deductive approaches

b. Foundations of economic analysis(models, evidence, statistical analysisand their limitations)

Purposes and usefulness of models

Plausibility of assumptions

Common logical fallacies

Statistical limitations

examine and critique the significance of economics to theindividual, society, the nation and the international economy

examine and critique the nature and significance ofeconomics as a social science; compare and contrasteconomics with the natural sciences

distinguish between the inductive and deductive methods ofeconomic inquiry

(Detailed technical and mathematical knowledge ofeconometrics is not required.)

examine the foundations of economic analysis and evaluatethe usefulness of economic models in relation to theplausibility of assumptions (ceteris paribus, rationality, otherassumptions); logical fallacies (fallacy of composition, post-hoc fallacy, other conditions fallacy); and statistical limitations(misleading comparison, selection bias, other limitations)


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c. Uncertainty and ImperfectInformation

Uncertainty and risk

Optimal search with imperfectinformation

Asymmetric information, hiddenactions and characteristics

Measures to counter asymmetricinformation

examine the problem of uncertainty and imperfect information,and attitudes to risk (risk-averse, risk-neutral and risk-inclined)

examine the issue of asymmetric information in relation toproblems of adverse selection, moral hazard and principal-agent problem in product, insurance and labour markets

examine and evaluate measures to counter problems ofasymmetric information in particular, monitoring, signalling,screening and efficiency wages


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3: Regional and International EconomicsThis theme provides an opportunity for candidates to examine recent trends, related issues anddevelopments in Singapore as well as the regional and international economy. Candidates should be ableto evaluate trade theories, trade policies, economic effects of globalisation, regional and internationaleconomic co-operation and their implications for national, regional and international policies.

Syllabus Content Candidates should be able to:

3.1 Trade Theories

a. Comparative advantage (Ricardo)

b. Factor endowment theory(Heckscher-Ohlin)

c. Factor price equalisation

d. Intra-Industry vs inter-industry trade

3.2 Trade Policies

a. Exchange rate policy

b. Strategic trade policy

c. Economic sanctions

d. Protectionism

e. Free trade agreements

f. Regional trading arrangements

3.3 Globalisation, MultinationalEnterprises and EmergingEconomies

a. Foreign direct investment (FDI) andmultinational enterprises (MNEs)

b. Economic effects, benefits and costsof globalisation

examine increasing costs, partial specialisation and dynamiccomparative advantageexamine and evaluate various trade theories and theirrelevance in the real world context(Detailed knowledge of trade theories using indifferencecurve analysis is not required.)

examine intra-industry vs inter-industry trade

examine and evaluate the economic and welfare effects ofexchange rate and strategic trade policies, economicsanctions, protectionism, trade barriers and WTO, free tradeagreements and regional trading arrangements such as freetrade area, customs union, common market, economicunion and monetary union and their implication

examine the vertical, horizontal and conglomerateintegration in relation to MNEs, motives for FDI, evaluateMNEs as a source of conflict in relation to employment,technology transfer, national sovereignty, balance ofpayments, taxation, transfer pricing, outsourcing

examine and evaluate the economic effects, benefits andcosts of globalisation on economies at various stages of

development with a focus on emerging economies; inparticular, impact on competitiveness, outsourcing,employment, labour mobility, capital flows, exchange rates,balance of payments, economic growth and development,and their implications on national policies


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RECOMMENDED READING

General Textbooks:

Author Title Publisher

1 Case, Karl E & Fair, Ray(2004) Principles of Economics, 7th edition Prentice Hall

2 Marshall, Alfred (1997) Principles of Economics, revised edition Prometheus Books

3 McEachern, William A.(2006)

Contemporary Economics, 2nd edition South-Western CollegePublishing

Theme 1: Study of Economics


1 Buchholz, Todd (2007) New Ideas from Dead Economists,revised edition

Plume

2 Davis, Morton D. (1997) Game Theory: A Nontechnical Introduction Dover Publications

3 Dixit, Avinash et al. (2009) Games of Strategy, 3rd edition W W Norton & Company

4 Friedman, Milton & Rose(1990)

Free to Choose, reprint Harcourt

5 Hausman, Daniel M.(1992)

The Inexact and Separate Science ofEconomics

Cambridge UniversityPress

6 Mayer, Thomas (2009) Invitation to Economics Wiley-Blackwell

7 Schelling, Thomas (2006) Micromotives and Macrobehaviour,revised edition

W. W. Norton & Company

8 Taleb, Nassim (2001) Fooled by Randomness, 2nd edition Random House

9 Taleb, Nassim (2008) The Black Swan, 2nd edition Random House

Theme 2: Firms and Market Failure


1 Anderson, David A.(2006)

Environmental Economics and NaturalResource Management, 2nd edition

Pensive Press

2 Besanko, Davidet al.(2009)

Economics of Strategy, 5th edition John Wiley & Sons

3 Frank, Robert (2009) Microeconomics and Behavior, 8th revisededition

McGraw Hill HigherEducation

4 Kay, John (2003) The Truth about Market: Their Genius,Their Limits, Their Follies

Allen Lane

5 Miller, Roger LeRoy et al.(2009)

Economics of Public Issues, 16th edition Addison Wesley


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6 Perloff, Jeffrey M. (2010) Microeconomics Theory and Applicationswith Calculus, 2nd edition

Addison WesleyPublishers

7 Pindyck, Robert &Rubinfeld, Daniel L.(2008)

Microeconomics, 7th edition Pearson EducationalInternational Publishers

Theme 3: Regional and International Economics


1 Bolton, Giles (2008) Africa Doesnt Matter Arcade Publishing

2 Dicken, Peter (2007) Global Shift, 5th edition The Guilford Press

3 Galbraith, John K. (1998) The Affluent Society Mariner Books

4 Kjeldsen-Kragh, Soren(2001) International Trade Policy Copenhagen BusinessSchool Press

5 Krugman, Paul &Obstfeld, Maurice (2008)

International Economics, 8th edition Prentice Hall

6 Krugman, Paul (1995) Peddling Prosperity: Economic Sense andNonsense in an Age of DiminishedExpectations


7 Krugman, Paul (2009) The Return of Depression Economics and theCrisis of 2008, reprint edition


8 Prestowitz, Clyde (2006) Three Billion New Capitalists: The Great Shift

of Wealth and Power to the East

Basic Books

9 Sachs, Jeffrey D. (2008) Common Wealth: Economics for a CrowdedPlanet

Penguin Press

10 Sachs, Jeffrey D. (2006) The End of Poverty Penguin Press

11 Stiglitz, Joseph (2003) Globalisation and its Discontents W. W. Norton & Company

12 Stiglitz, Joseph (2007) Making Globalisation Work W. W. Norton & Company

13 Stiglitz, Joseph (2004) The Roaring Nineties W. W. Norton & Company

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GCE A LEVEL H3 ECONOMICS 9808_2015