1.(a)Compare the characteristics of the market structures of monopolistic competition an oligopoly.

2.Discuss whether firms in a highly competitive market are more vulnerable than firms in a less competitive market in a recession.

3.)Explain whether the demand for private cars is elastic or inelastic in Singapore with respect to price and income.

4.Discuss the effects of a sharp rise in the prices of Certificates of Entitlement in Singapore on expenditure by consumers on different types of cars

5.Discuss whether the concepts of elasticity of demand are useful to the government for discouraging the use of private cars

6.Discuss whether a shift from reliance on foreign workers to improving labour productivity in Singapore would lead to an increase in international competitiveness

7.Explain how the different characteristics of the market structures of monopolistic competition and oligopoly affect pricing and output decisions.

8.Discuss whether the behaviour of oligopolistic firms is consistent with the objective of profit maximisation.

9.a)Explain why the government subsidises education. [10]

10.Discuss whether a reduction in the subsidy on education is justified

11.Discuss whether austerity measures in the European Union would adversely affect the Singapore economy

12.Discuss whether a shift from direct taxes to indirect taxes would improve the current and future standards of living in Singapore.

13.Explain why Singapore chooses to use the exchange rate rather than interest rates as the policy instrument of its monetary policy.

A company has estimated that the cost of its ordinary share capital is 15%, and the cost of its non-voting preference share capital is 10%. Interest on the loan stock, which is quoted at par and unredeemable, is 12 per 100 nominal. The loan stock is secured on freehold land and buildings. The company's business is well run in a mature industry that is growing slowly, its profitability is good and increasing, and there are no cash flow problems. Suggest, giving your reasons, why the returns on the different kinds of capital appear to be inconsistent with normal theory (ignore taxation).