| JC Economics Tuition – Answering Policy Essay Questions | |
| Mr Koh recapped the structure for answering essay questions that ask whether a policy is the best, most appropriate, or only way to address a problem. He emphasizes the importance of using the GPLS (Goal, Policy, Limitations, Supporting/Alternative policy) framework for these questions. Mr Koh stressed that this question type being very common, would definitely appear in the upcoming exams, across both microeconomics and macroeconomics essays. | |
| JC Economics Tuition – Answering Impact Essay Questions | |
| Mr Koh discussed the importance of understanding the impact of events on various economic factors, emphasizing again the likelihood of such questions appearing in exams. He highlighted examples across both micro and macroeconomic outcomes such as living standards or impact on a firm. He introduced different structures for answering such questions and emphasized the importance of practice and exam simulations. Mr Koh concluded by asking if there were any questions or concerns. | |
| Evaluating with Economy’s Nature and State | |
| Mr Koh discussed the importance of understanding the nature and state of an economy in writing evaluative comments. He emphasized that the nature of an economy, which remains relatively stable over time, should be considered when assessing the impact of events such as a trade war. The state of an economy, which can change over time, should also be taken into account. Mr Koh also highlighted the role of government in mitigating negative consequences and the need to consider the root cause of a problem when formulating policy. He encouraged the use of relevant evidence and perspectives, such as long and short run, to support evaluations. | |
| Improving Essay Scores With Economic Concepts | |
| Mr Koh introduced the NSGRTE framework (Never Stop Getting Ready to Evaluate) and encouraged students to apply it to improve their essay scores through evaluation. He then introduced a lesson plan to clarify the concepts of inflation rate, exchange rate, and interest rate, explaining them as internal value, external value, and time value of currency respectively. Mr Koh emphasized the importance of breaking down concepts into fine details and introduces an exercise to analyze the impact of one economic factor on another, using the analogy of finding and splitting a dartboard to demonstrate logical thinking and subject mastery. | |
| Exchange Rate Determination and Inflation Impact | |
| Mr Koh explained how exchange rates are determined by demand and supply in the foreign exchange market. He broke down the factors affecting demand for a currency, including demand for exports (influenced by price competitiveness, income levels, and quality) and capital inflows (both short-term and long-term). For supply, he discussed imports and capital outflows. Mr Koh then explored the impact of rising inflation on exchange rates, explaining how it affects exports and imports through changes in price competitiveness. | |
| Exchange Rate and Inflation Dynamics | |
| Mr Koh clarified the concepts of inflation rates and exchange rates, emphasizing the importance of understanding the differences between real and nominal terms. He discussed the Marshall-Lerner condition, which states that depreciation of the exchange rate leads to higher net exports and possibility demand-pull inflation, while appreciation leads to lower net exporst and cost-push inflation. Mr Koh also explained that the condition is only used when both import and export prices change, which occurs due to exchange rate changes. He further discussed the factors that cause import-push inflation, including overseas supply shocks, natural disasters, and exchange rate depreciation. The class was encouraged to consider these factors when explaining the relationship between exchange rate depreciation and inflation rate. | |
| Interest Rates and Currency Values | |
| Mr Koh reviewed the impact of falling interest rates on internal and external currency values. He explains that lower interest rates lead to cheaper borrowing, higher consumption, and increased investment profitability. He also discusses the secondary effect of hot money outflows causing currency depreciation. Mr Koh emphasized the importance of breaking down concepts into root causes and direct links for better understanding and analysis. The class ended with a brief mention of next week’s topics: exchange rates and Singapore’s monetary policy. | |
| Conclusion While the above lesson may seem rigorous, JC Economics students who have learnt to cut through the content clutter to zero in on key application skills will find the discussion enlightening and highly effective in boosting their ability to answer examination questions. Students looking to catch up on their H2 Economics and to stay ahead in their answering techniques can book a trial session here. |
