Textbooks for “A” Level Economics 

 

(1)      Sloman, John Economics, 4th Edition Prentice Hall

(2)      Sloman, John Essentials of Economics Prentice Hall

(3)      Maunder, Peter and Miller, Roger Economics Explained

          Collin Educational

(4)      Lipsey, Steiner, Purvis and Courant Economics, 10th Edition

          Harper Collins

(5)      G.F. Stanlake, Introductory Economics, Longman Publisher

(6)      Beardshaw, John Economics: A Student’s Guide Pitman

(7)      McEachern, William A Economics: Contemporary Introduction,

          5th Edition South-WesternCollege Publishing

(8)      Begg, Fisher and Dornbush, Economics, McGraw Hill

(9)      Roger Miller, Economics Today, Addison-Wesley

(10)    Parkin Michael, Economics, Addison-Wesley

(11)    Collin Bamform, Keith Brunskill, Gordon Cain, Economics :

          AS Level and A Level, Cambridge University Press

(12)    Robert Frank and Ben Bernanke, Principles of Economics,

          Pearson Education

(13)    O’Sullivan Arthur and Sheffrin Steven M., Economics :

          Principles and Tools, Pearson

(14)    Robert Sexton, Exploring Economics, Thomson South-Western

(15)    Mankiw, Gregory, Principles of Economics , Problems and

Policies, Thomson South-Western      

(16)    McConnell and Bruce, Economics, Economics : Principles,

          Problems and Policies, McGraw Hill

(17)    Case and Fair, Principles of Economics, Pearson

(18)    Lai, Lim, Koh Chan and Lim College Economics Pan Pacific

(19)    Hashim Ali, Comprehensive Economics Guide, Oxford

(20)    Patrick Lim, Economics, Study Guide, Academic Publications

(21)   Hoon, Koh, Chin and Quah Economics: Theory and Applications

         McGraw Hill

(22)    Low, Linda and Toh Mun Heng Principles of Economics

          Addison-Wesley

(23)    Low, Linda and Toh Mun Heng An Economic Framework of

          Singapore McGraw Hill

(24)    Lim Chong Yah, Elements of Economic Theory, Oxford

(25)    Lim Chong Yah, Economic Structure and Organisation, Oxford

(26)    Lai Kok Seng, Essentials of Microeconomics, Pan Pacific

(27)    Lai Kok Seng, Essentials of Macroeconomics, Pan Pacific

(28)    Lipsey, Richard G An Introduction to Positive Economics

           Weidenfeld &Nicolson

(29)    Lipsey and Chrystal Positive Economics Oxford University

Press

(30)    Amos, Orley M, Jr Economics: Concepts, Analysis and

Applications Wadsworth

(31)    Dewett Modern Economic Theory S. Chand

(32)    J. Harvey Modern Economics ELBS

(33)    Hanson A Textbook of Economics ELBS

(34)    Stoner and Hague A Textbook of Economic Theory Longman

(35)    Samuelson Economics McGraw Hill

(36)    Clark Economics : Cost and Choice

(37)    Barnard A course in Microeconomics Longman

(38)    Burningham Understanding Economics Manchester Press

(39)    Hicks The Social Framework Oxford Press

(40)    Baumol Economics : Principles and Policies Harcourt

(41)    Wonnacott Economics McGraw Hill

(42)    Livesey A Textbook of Core Economics Longman

(43)    Gregory Principles of Economics Harpers

(44)    Powell Economics ELBS

(45)    Leftwich The Price System and Resource Allocation

           Dryden Press

(46)    Chiller The Microeconomics Today McGraw Hill

 

History of Singapore Attempts to write textbooks for GCE “A” Level Economics in chronological order

 

(1)      (a)      Elements of Economic Theory

          (b)      Economic Structure and Organisation

                    (by Professor Lim Chong Yah)

 

(2)      (a)      Essential Elements of Microeconomics

          (b)      Essential Elements of Macroeconomics

                     (by Lai Kok Seng)

 

(3)      College Economics (by Lai Kok Seng)

 

(4)      Comprehensive Economics Guide (Hashim Ali)

 

(5)      Principles of Economics

          (by Dr Linda Low and Dr Toh Mun Hong)

 

(6)      An Economic Framework of Singapore McGraw Hill

          (by Low, Linda and Toh Mun Heng)

(7)      Economics: Theory and Applications

          (by Hoon, Koh, Chin and Quah)

(8)      Principles of Economics

          (by Associate Professor Hoon Hian Teck)

          (to be published in 2009)

How to study for “A” Level Economics ?

 

(1)      Detailed Syllabus

(2)      Examination Format

(3)      Examiners’ Reports and Marking Scheme

(4)      Exam-oriented Notes

(5)      Past Year Examination Questions (Topic by Topic)

(6)      Past Year Examination Questions (Year by Year)

(7)      Model Answers

(8)      Flowchart

(9)      Examination Strategies

(10)    Practise, Summarise and Revise regularly (ie SQ3R Study Method)

 

Topics Covered  

 

Microeconomics

 

(1)      The Central Problem of Economics (including PPC, specialization

and exchange)

(2)      Demand and Supply, and Price Determination

(3)      Demand and Supply Elasticities

(4)      Production, Cost, Revenue and Profit

(5)      Market Structure

(6)      Privatization, Centralization and Globalization

(7)      Labour Market

(8)      Price Mechanism and Resource Allocation

(9)      Public Goods, Merits Goods and Externalities

(10)    Role of Government and Microeconomics Policies

 

Macroeconomics

 

(1)      Money, Inflation and Banking

(2)      National Income Accounting

(3)      Theory of Income and Employment

(4)      Unemployment, Philips Curve and Business Cycles

(5)      International Trade and Finance

(6)      Role Of Government and Macroeconomics Policies

 

Important Notes :

 

The new syllabus has emphasized on Singapore Economy. Hence, students are required to have a good understanding of the important economic issues and policies that are affecting Singapore both locally and internationally.

 

The new examination format requires students to have the ability to understand and interpret economic information presented in textual, numerical or graphical form.

 

It also requires students to select and apply economic concepts and principles to explain and analyse recent events at both the micro and macro levels.

 

Hence, it is important to master the skill of analysis rather than merely memorizing the facts.

 

History of GCE “A” Level Economics Examinations

 

(1)      1958 to 1971          Papers 1 and 2 (answer any 5 out of 11 or 12

given essay questions each)

 

(2)      1972 to 1976          Paper 1 (40 MCQs) and Paper 2 (answer any 5

out of 11 or 12 given essay questions)

 

(3)      1977 to 1982          Paper 1 (50 MCQs) and Paper 2 (answer any 5

out of 11 or 12 given essay questions)

 

(4)      1983 to 1990          Paper 1 (50 MCQs), Paper 2 (2 data response

                                        questions) and Paper 3 (answer any 4 out of 11

or 12 given essay questions)

 

(5)      1991 to 2001          Paper 1 (40 MCQs), Paper 2 (2 data response

                                        questions) and Paper 3 (answer any 4 out of 11

or 12 given essay questions)

 

(6)      2003 to 2007          Paper 1 (30 MCQs), Paper 2 (1 data response

question and 1 case study question) and Paper 3

(answer 3 out of 6 given questions)

 

(7)      2007 (H2 Econ) -  Paper 1 (1 data response question and 1 case

study question) and Paper 2 (answer 3 out of 6

given questions, at least one question from

Microeconomics and Macroeconomics)

Question (by rs rs)

Can someone explain to me why BOP must always balance but it does not guarantee BOP equilibrium? any econs student can help?

Answer

Hi rs rs,

When your "A" level economics lecturer says that BOP must always balance, he/she is actually referring to the accounting BOP balance.

In accounting, when a company buys goods for sale using cash, it will be recorded in the accounting books as debit purchases and credit cash. For every transaction, there will be a debit entry and a credit entry.

At the end of accounting year, the accountant will prepare a statement known as a trial balance. The trial balance will total up the values of all the debit entries and all the credit entries and if there is no mistake in recording every transaction, the total debit value will be equal to the total credit value. When this happens, the accountant says that the account is in balance ie all debit value = all credit value 

Similarly, when a country buys goods from abroad ie imports, the country needs to exchange its local currency for the foreign currency to buy the imports, so the country official reserves of foreign currency will decrease. This will be recorded as debit imports and credit official reserves.

Similarly, at the end of the government year, the government statistician will total up the values of all the debit entries and all the credit entries and if there is no mistake in recording every transaction, the total debit value will be equal to the total credit value. When this happens, the accounting BOP statement is said to be in balance ie all debit value = all credit value. 

However, the term BOP balance is used differently in newspapers, news, economics and finance.

BOP balance can be positive, zero or negative

Positive BOP balance (commonly known as BOP surplus) means the country's international receipts are more than its international payments arising out of its international transactions ie imports, exports of goods and services, unilateral transfers, capital inflow and outflow. The excess/surplus of international receipts over international payments increases the country's official reserves of foreign currencies.

Zero BOP balance (commonly known as equilibrium BOP) means the country's international receipts are equal to its international payments arising out of its international transactions ie imports, exports of goods and services, unilateral transfers, capital inflow and outflow. No excess/shortage of international receipts over international payments leaves the country's official reserves of foreign currencies unchanged.

Negative BOP balance (commonly known as deficit BOP) means the country's international receipts are less than than its international payments arising out of its international transactions ie imports, exports of goods and services, unilateral transfers, capital inflow and outflow. The shortage/deficit of international receipts over international payments decreases the country's official reserves of foreign currencies.

Thank you for your kind attention.

Regards,

ahm97sic

 

Economic History

*   1960 - 1964

*   1965 - 1978

*   1986 - 1997

*   1998 onwards

1960 - 1964

Challenges

• Small country with no natural resources.
• Small population of 1.6 million in 1960, but growing rapidly.
• Highly dependent on entrepot trade and the provision of services to British military bases here.
• Small manufacturing base.
• Little industrial know-how and domestic capital.
  
  

Developmental Strategies

• Industrialised through an import substitution strategy, to solve the unemployment problem and diversify away from dependence on entrepot trade.
• Established various economic agencies to spearhead our economic development. Economic Development Board (EDB) was established in 1961, while Singapore Tourism Promotion Board (STPB) was formed in 1964. Development of Jurong Industrial Estate also began in 1961.
  
  

Achievements

• GDP growth averaged 5.1 % p.a. during this period.
• Manufacturing sector's share of GDP grew from 11 % in 1960 to 14 % in 1964.

1965 - 1978

Challenges

• Separation from Malaysia caused the import-substitution strategy to be aborted.
• Confrontation with Indonesia threatened our traditional role as a major trading post for the region.
• Planned withdrawal of British bases, which employed around 40,000 workers, within 5 years.
• High unemployment rate, estimated at about 10 %.
  
  

Developmental Strategies

• Industrialised through an export-oriented strategy, by attracting foreign investors to Singapore to develop the manufacturing and financial sectors.
• Improved labour climate and investment environment by enacting the Employment Act to lay down standards of employment to help resolve industrial disputes. In addition, the National Trades Union Congress (NTUC) and National Wage Council (NWC) also helped to promote better labour-management relations. Invested in key infrastructure, including the establishment of the Jurong Town Corporation.
• Nationalised companies in areas where the private sector lacked capital or expertise, like Singapore Airlines, Neptune Orient Lines, Development Bank of Singapore and Sembawang Shipyard. 

Achievements

• Growth averaged 10 % p.a. during this period.
• Unemployment rate fell to 3.6 % in 1978.
• Manufacturing sector's share of GDP grew from 14 % in 1965 to 24 % by 1978.

1979 - 1985

Challenges

• Tight labour market, with upward pressures on wages.
• Emergence of other lower cost developing countries in the region, which had become strong contenders for MNC investments.
• Need to restructure the economy towards higher value added activities.
  
  

Developmental Strategies

• A three-year wage correction policy to reflect the tight labour market and induce efficient use of labour.
• Renewed emphasis on manpower development through education and training.
• Encouraged automation, mechanisation and computerisation.
• Shifted towards higher value-add and skills intensive investment promotion policy.

Achievements

• Economic growth averaged 7.3 % p.a. during this period.
• Nominal value-added per manufacturing worker grew from $18,400 in 1979 to $27,000 in 1985.
• Skilled employed as a share of total employment doubled from 11 % in 1979 to 22 % in 1985.

1986 - 1997

Challenges

• A more mature economy with slower growth.
• Resource constraints more binding and faster rising costs.
• More intense competition, from both developed and developing countries.
• Relatively low technology base on a global basis.
  
  

Developmental Strategies

• Deepen Technology Base
  The Government took the lead in catalysing the development of technology. We committed $2 billion from 1991 to 1995 under the National Technology Plan and another $4 billion under the National Science and Technology Plan from 1996 to 2000.
  
• Cluster Development
  Industrial strategy was refined to leverage on synergies at the firm and industry levels. Mutually supporting industries were identified and developed to entrench entire clusters niche areas, e.g. electronics, petrochemical and engineering. By competing on the basis of clusters, we could formulate cluster development plans with emphasis on core capabilities that were common to industries within the cluster.
  

• Promoting Manufacturing and Services as Twin Pillars of the Economy
  To diversify our sectoral and market dependency, reduce vulnerability, and promote a broader base for the economy, services were promoted together with manufacturing as twin pillars of the economy. For this purpose, many incentives offered for manufacturing investments, e.g. pioneer status, investment allowances, were also extended to investments in service sectors.
  
• Regionalisation
  The Government encouraged leveraging on the potential of the Asian markets in order to overcome local resource/market constraints and complement our established links to the OECD countries.

Achievements

• GDP growth averaged 8.6 % p.a. during this period.
• Share of financial and business services sectors in total GDP grew from 21 % in 1986 to 26 % in 1997.
• The number of research scientists and engineers grew from 3,361 in 1987 to reach 11,302 in 1997.
• Stock of direct investments abroad increased from $16.9 billion in 1990 to reach $75.8 billion in 1997.

1998 onwards

Challenges

• The Singapore economy was hit by the regional crisis that started with the devaluation of the Thai Baht in July 1997. Although our financial and economic fundamentals were sound, the rapidly deteriorating external environment adversely affected Singapore due to our close linkages with the regional economies.

• The Singapore economy contracted 1.4 % in 1998, after achieving 8.3 % growth in 1997.

• After picking up in 1999-2000, Singapore was hit by another recession in 2001. The synchronised downturns in the major developed economies as well as the global electronics industry led to a sharp deceleration in global growth. The terrorist attacks in the US on 11 September further aggravated the slowdown. As a result, the Singapore economy fell by 2.4 %, down from 10 % growth in 2000.

• The rise of large new players like China and India brings both challenges and opportunities.
  
  

Developmental Strategies

• Singapore aims to become a globalised, entrepreneurial and diversified economy, with economic growth of 4-6 % p.a. over the medium term.
  

• The key strategies are :
  

• Expanding external ties - embracing globalisation through the multilateral trading framework of the WTO, regional co-operation as well as bilateral Free Trade Agreements.
  

• Maintaining competitiveness and flexibility - keeping the burden of taxes and the Central Provident Fund on the economy as low as possible, reviewing the labour market and wage system to make them more flexible, and pricing factors of production competitively.
  

• Promoting entrepreneurship and domestic companies - encouraging people to be innovative and improving the ability of firms to develop new ideas and businesses, tap new export markets and broaden the economic base.
  

• Growing manufacturing and services - upgrading these sectors by improving cost competitiveness, equipping the labour force with relevant skills, and developing new capabilities and industries.
  

• Developing human capital - investing in education, helping workers train and upgrade, and welcoming global talent to augment the indigenous talent pool. 

This is the worked solution for the fun question.

Question

Using Binomial Theorem, obtain the first 3 terms in the expansion

(1-x)/[square root(4-x)]

Show that if x = 2/5, then (1-x)/[square root(4-x)] = - 1/(square root 10).

Hence, calculate the value of - 1/(square root 10) correct to 3 significant figures.

Answer

Step 1 : Use Binomial Expansion to obtain the first three terms of the expression

(1-x)/[square root(4-x)]

= (1-x)/[square root(4(1-x/4))]

= (1/2)(1-x)/[square root(1-x/4)]

= (1/2)(1-x)(1-x/4)^(-1/2)

= (1/2)(1-x)[1 + (-1/2)(-x/4) + {(-1/2)(-3/2)}/{(1x2)}(-x/4)^2 + .......]

                 Use Binomial Expansion

= (1/2)(1-x)[1 + x/8 + (3/128)x^2 + .......}

= (1/2)[1+ x/8 + (3/128)x^2 - x - 1/8x^2 + ....... ]

= (1/2)[1 - (7/8)x - (13/128)x^2 + ........]

Step 2 : To show that if x = 2/5, then

             (1-x)/[square root(4-x)] = 1/(square root 10)

Substitute x = 2/5 into

(1-x)/[square root(4-x)]

= (1 - 2/5)/[square root (4 - 2/5)]

= (3/5)/[square root (18/5)]

= [Square root(9/25] / [square root (18/5)]    Make 3/5 into [Square root(9/25)]

= square root [(9/25)/(18/5)]

= square root [1/10]

= 1/ square root 10 (shown)

Step 3 : Use of the first three terms in the expansion to calculate the value of 

            1/(square root 10) correct to 3 significant figures

Substitute x = 2/5 into the first three terms in the expansion

1/square root 10 = (1/2)[1 - (7/8)x - (13/128)x^2 + ........]

                         = (1/2)[1 - (7/8)(2/5) - (13/128)(2/5)^2 + ........]

                         = 0.317 (correct to 3 significant figures)

Thank you for your kind attention.

Regards,

ahm97sic

Dear Garrick_3658,

When the n is a power, the general nth term forumla an^2 + bn + c cannot be used.

Until now ie 2007, "O" level examiners have not set nth term forumla with n^3. If it really comes out in 2008, you can use the nth term formula an^3 + bn^2 + cn + d to form 4 simultaneous equations to solve for a, b, c and d. However, this cannot be done using Casio FX 95 MS or Sharp EL 509WS. You will need a graphic calculator eg TI 84 Plus, Casio 9860 or Sharp 9900 to find the nth term formula.

Nevertheless, if n^3 really comes out in 2008 exam, it will probably be something like n^3 +2 in the sequence 3, 10, 29, 66, ......

For the topic LInear Law in add maths, many students have the difficulty to get the exact value of the gradient M and Y-intercept, C in the equation Y = MX + C where Y can be 1/y or lg y and X can be 1/x or lg x.

To get the exact value, we can make use of a topic known as linear regression (to be learnt in H2 and H1 Maths) which can help us to find the exact M and C. This is done using Casio FX 95 MS.

Press mode once

Press 3 for regression

Press 1 for linear regression

Input the X and Y data (not x and y data)

Press shift S-Var

Press right arrow three times

Press 1 for A = C

Press 2 for B = M

Regards,

ahm97sic

 

 

 

 

 

Originally posted by Garrick_3658:

I have it, but how?

Dear Garrick_3658,

Let us use Pattern 4 as an example

1, 3, 6, 10, ......

Use the general nth term formula an^2 + bn +c

n = 1, a(1)^2 + (1)b + c = 1

         a + b + c = 1 ------------------------ (1)

n = 2, a(2)^2 + 2(b) + c = 3

          4a + 2b +c = 3 --------------------- (2)

n = 3, a(3)^2 + 3(b) +c = 6

         9a + 3b + c = 6 ------------------- (3)

We can solve these three simultaneous equations mathematically for a, b and c OR we can  to make use of the equation mode in Casio FX 95 MS or Sharp EL 509WS to find a, b and c.

Using the equation mode in Casio Fx 95 MS to find the nth term formula

Press Mode twice

Press 1 for equation mode

Press 3 for 3 unknowns for 3 simultaneous equations a1x + b1y + c1z = d1

                                                                               a2x + b2y + c2z = d2

                                                                               a3x + b3y + c3z = d3

Press 1 for a1

Press 1 for b1

Press 1 for c1

Press 1 for d1

Press 4 for a2

Press 2 for b2

Press 1 for c2

Press 3 for d2

Press 9 for a3

Press 3 for b3

Press 1 for c3

Press 6 for d3

Press =

x = a = 0.5

Press =

y = b = 0.5

Press =

z = c = 0

Since, a = 0.5, b = 0.5, c= 0,

the nth term formula an^2 + bn + c

                           = 0.5n^2 + 0.5n + 0

                           = 0.5n(n+1) 

                           = (1/2)n(n+1)

Regards,

ahm97sic  

      

For "O" Level E.Maths Students

Students are advised to practise on these questions to familarize themselves with the different patterns asked in the "O" level Exam on E.Maths.

 

Thank you for your kind attention.

 

Regards,

 

ahm97sic

Hi Eagle,

Please come into my forums (addmaths.sgforums.com and emaths.sgforums.com)

more often. OK.

Regards,

ahm97sic

PS : I am in the process of setting up the "A" level (H2 and H1) Economics forum

       too. Please come to visit the economics forum too. OK.

 

Hi Davidche and Eagle,

Dear Davidche, very sorry. I was busy this morning and I had not gone online. Luckily, Eagle saw your question and he has provided you with two approaches to solve the question.

Dear Eagle, thanks for helping Davidche with the question.

Dear Davidche and Eagle, please come into my forums (addmaths.sgforums.com and emaths.sgforums.com) more often. OK.

Regards,

ahm97sic

PS : Dear Davidche, I have posted notes and questions for number patterns in the emaths.sgforums.com. Perhaps you will like to take a look of it. Thanks.   

Dear Davidche,

Indeed, enough sleep is important for the best performance in exam.

All the best for your add maths exam.

Warmest Regards,

ahm97sic

Hi Eagle,

The "O" level E.Maths and Add Maths Students have not learnt the curve sketching techniques yet. They still do not know the shapes of many curves yet.

For example, these students will not know the shape of the curve

[(x-5)(x+2)]/[(-4)(x+1)  and so on.

The number line method will be easier for these students as this method can be used even if they do not know the shape of the curve.

Nevertheless, I do agree with you that if the students know shape of the curve, they can get the inequality faster as the curve y = (x-5)(x+2)(x-4)(x+1) is a W-shaped curve since the coefficient of x^4 is positive.

Hence, the solution for the inequality (x-5)(x+2)(x-4)(x+1) < 0 is

-2 < x < -1    ,      4 < x< 5

as for -2 < x < -1, the W-shaped curve is below the x-axis and for 4 < x < 5, the W-shaped curve is also below the x-axis.

Regards,

ahm97sic