| Macroeconomic Aims and Issues: Quick Guide for JC Economics Students | |
| National Income Chapter Closure (for TET’s JC Economics tuition students) | |
| In this JC Economics tuition session, Mr Koh led a discussion on the completion of the first chapter on national income, which covered topics such as circular flow, GDP performance, living standards, inclusive growth, and sustainable growth. He emphasized the importance of rigor in answering questions, using precise definitions and key terms. He also discussed the importance of understanding how to measure equilibrium real GDP and the two models used to capture this. Mr Koh also introduced the concept of the Marshall-Lerner condition, which was covered in the balance of payment notes. He encouraged the use of a document in the Economics tuition Dropbox folder for further clarification on these topics. | |
| Understanding Balance of Trade Concepts | |
| Mr Koh discussed the concept of Balance of Trade (BOT) and its measurement in real and nominal terms. He explained that while BOT is measured in nominal terms, (X-M) in AD is measured in real terms. Mr Koh also discussed the factors affecting the balance of trade, including Price Competitiveness, Income levels, and Quality Competitiveness (PIQ framework). He emphasized the importance of understanding the impact of inflation on the balance of trade, using the example of a hypothetical increase in inflation in Singapore affecting the price competitiveness of exports. Mr Koh also touched on the concept of price elasticity of demand and its relevance to the balance of trade. | |
| Exchange Rates Impact on Trade Balance | |
| Mr Koh discussed the impact of exchange rates on the balance of trade. He explained that if the Sing Dollar appreciates, it becomes stronger and can buy more of other currencies, leading to an increase in the quantity demanded of exports and a decrease in the quantity demanded of imports. This can result in a worsening balance of trade, which could mean a shrinking surplus, a growing deficit, or a surplus that turns into a deficit. Mr Koh emphasized the importance of considering the original balance of trade when assessing the direction in which BOT worsens. | |
| Understanding Balance of Trade and Contracts | |
| Mr Koh discussed the importance of understanding the balance of trade and the role of economists and mathematicians in analyzing data. He explained the concept of the Marshall-Lerner Condition, which states that if the sum of PEDx and PEDm is greater than one, depreciation of a currency will improve the balance of trade. Mr Koh also highlighted the role of trade contracts in the short run, stating that the quantity demanded is not very responsive due to these contracts. | |
| Understanding J Curve Effect and PED | |
| Mr Koh discussed the concept of the J curve effect and its implications on the balance of trade. He explained an alternative interpretation, which is that the price of exports rises in foreign currencies but remains the same in local currency, leading to a decrease in demand for exports. Mr Koh concluded by summarizing the key points and encouraging the participants to take notes for future reference. | |
| Scoring and Evaluating Essays Lesson | |
| Mr Koh led a lesson on how to score L3 and evaluate essays during the second half of the Economics tuition lesson. He discussed the importance of understanding the context and content for achieving a level 3 score. He also emphasized the need to know the endpoint which should be aligned to the mark scehem. Melvin explained how to answer part (a) on causes and encouraged the participants to practice and receive feedback. He also mentioned that the next topic would be macroeconomic aims and issues, with six themes to consider. | |
| Test Structure and Expectations Discussed | |
| Mr Koh discussed the structure and expectations of upcoming tests, emphasising alignment with BCC for part b) and CC for part a), and the importance of SCC for evaluation. TET’s JC Economics tuition sessions would often reiterate the L3 and Evaluation criteria. | |
| Balancing Trade and Economic Impact | |
| Mr Koh discussed the importance of considering balance of trade when assessing the impact of events on the economy. He emphasized the need to evaluate both positive and negative impacts to achieve BALANCE (aka thesis vs anti-thesis). Mr Koh also emphasized the importance of content (DDEE) and rigor in the R1 and R2 paragraphs. | |
| Understanding Economic Concepts and Context | |
| With regard to rigour, Mr Koh emphasized the importance of memorizing and understanding the definitions of various economic concepts, such as inflation, unemployment, and the explanation for shifts in AD/AS. He also stressed the need for context-specific inputs to ensure answers are not just memorized but also relevant to the topic. Melvin differentiated between ‘nature’ and ‘state’ in economics, with ‘nature’ being stable and ‘state’ being something that fluctuates. He used examples like Singapore’s small multiplier and high MPS to illustrate these concepts. Lastly, he discussed the importance of considering the state of expectations and the impact of events on the economy, particularly in relation to globalization and the distinction between developing and developed countries. | |
| Evaluating Event Impacts on Economy | |
| Mr Koh discussed the importance of understanding the impact of events on the economy, emphasizing the need to consider the level 3 criteria of balance, content, and context. He also highlighted the significance of evaluating the outcomes of events, particularly in the context of economic changes. Mr Koh stressed the importance of identifying both positive and negative impacts of events, such as higher interest rates, and suggested that the nature and state of the economy should be taken into account when evaluating these impacts. He also provided tips on how to structure responses to essay questions, emphasizing the need for a clear context and challenge. Finally, Mr Koh conducted an in-class practice on the impact of higher interest rates on an economy, encouraging participants to identify both positive and negative aspects. | |
| Summary | |
| The above summarises content and application skills covered in a typical TET Economics tuition class for J2 students. Students keen to experience JC Economics tuition lessons for themselves are welcome to sign up for a trial class here. |