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A Level H1 Economics Policy Evaluation Quiz
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Questions
A-Level Economics H1 Quiz - Policy Evaluation
Name: _________________________ Class: _________________________ Date: _________________________ Score: ______ / 50
Duration: 1 hour 15 minutes Total Marks: 50
Instructions:
- This quiz contains 20 questions on Policy Evaluation.
- Answer ALL questions in the spaces provided.
- Marks for each question are indicated in brackets.
- Where diagrams are required, label all axes and curves clearly.
- Read each question carefully before answering.
Section A: Short-Answer Questions (10 marks)
Answer all questions in this section. Questions 1-5.
1. State one constraint a government faces when implementing expansionary fiscal policy during an economic downturn. [1 mark]
2. Define the term "government failure" in the context of policy intervention. [1 mark]
3. Identify two macroeconomic goals that may conflict when a government pursues rapid economic growth. [2 marks]
4. Explain the concept of "time lag" as a limitation of discretionary fiscal policy. [2 marks]
5. State one advantage and one disadvantage of using regulation rather than taxation to address a negative externality. [2 marks]
Section B: Data Response and Structured Questions (20 marks)
Answer all questions in this section. Questions 6-10.
Extract A: Singapore's Policy Mix During Economic Recovery
Singapore employed a combination of fiscal measures, including the Jobs Support Scheme which subsidised wages, and monetary policy adjustments through the Singapore dollar nominal effective exchange rate (S$NEER) policy band. The government also introduced supply-side measures such as SkillsFuture credits to encourage upskilling and reskilling of workers. However, some economists noted that expansionary policies risked higher inflation, while supply-side measures would take years to show full effects.
6. With reference to Extract A, identify one demand-side policy and one supply-side policy mentioned. [2 marks]
7. Using Extract A, explain one potential trade-off Singapore's government faced in implementing its policy mix. [2 marks]
8. Explain how the Jobs Support Scheme (a wage subsidy) could affect both aggregate demand and aggregate supply in Singapore. [4 marks]
9. Discuss one reason why supply-side policies such as SkillsFuture may take longer to affect the economy compared to demand-side policies. [2 marks]
Extract B: Carbon Tax in Singapore
Singapore introduced a carbon tax in 2019, set at S50–S$80 per tonne by 2030. Revenue from the carbon tax is used to support businesses in adopting energy-efficient technologies and to fund green infrastructure projects.
10. With reference to Extract B, explain how the carbon tax is intended to address market failure. [3 marks]
Section C: Essay and Extended Response Questions (20 marks)
Answer all questions in this section. Questions 11-15.
11. Evaluate the likely effectiveness of Singapore's carbon tax in reducing greenhouse gas emissions, given the planned increase in the tax rate. [3 marks]
12. Using a diagram, explain how a carbon tax affects the market for goods that generate carbon emissions. [4 marks]
Draw your diagram in the space below. Label all curves and axes clearly.
13. Explain why a policy that successfully reduces unemployment may simultaneously increase inflationary pressure. [2 marks]
14. Discuss the extent to which fiscal policy is more effective than monetary policy in managing the level of economic activity in Singapore. [8 marks]
15. Evaluate the view that government intervention to correct market failure always improves economic welfare. [12 marks]
In your answer, you should:
- Explain how government intervention can correct market failure
- Consider circumstances where government intervention may not improve welfare
- Use relevant examples to support your arguments
- Reach a reasoned conclusion
Section D: Case Study and Application Questions (10 marks)
Answer all questions in this section. Questions 16-20.
Extract C: Housing Affordability Measures in Singapore
The Singapore government has implemented various policies to ensure housing affordability, including the Additional Buyer's Stamp Duty (ABSD) to curb speculative demand, grants for first-time homebuyers, and the construction of Build-To-Order (BTO) flats by the Housing and Development Board (HDB). Despite these measures, concerns remain about rising resale flat prices and the financial burden on young couples. Some economists argue that the ABSD may distort the housing market, while others highlight the long waiting times for BTO flats as a limitation of supply-side intervention.
16. Identify one demand-side policy and one supply-side policy mentioned in Extract C. [2 marks]
17. Explain how the Additional Buyer's Stamp Duty (ABSD) is intended to address a market failure in the housing market. [2 marks]
18. Discuss one potential unintended consequence of the ABSD on the housing market. [2 marks]
19. Using a diagram, explain how a government grant for first-time homebuyers affects the market for new housing. [4 marks]
Draw your diagram in the space below. Label all curves and axes clearly.
20. Evaluate the effectiveness of Singapore's housing affordability measures in achieving both equity and efficiency objectives. [10 marks]
In your answer, you should:
- Explain how the measures address equity and efficiency
- Consider potential trade-offs between equity and efficiency
- Use examples from Extract C and your own knowledge
- Reach a reasoned conclusion
END OF QUIZ
Check your answers carefully before submitting.
Answers
A-Level Economics H1 Quiz - Policy Evaluation: Answer Key
Total Marks: 50
Section A: Short-Answer Questions (10 marks)
1. State one constraint a government faces when implementing expansionary fiscal policy during an economic downturn. [1 mark]
Answer: Any one of:
- Budget deficit / limited fiscal space / rising government debt
- Crowding out of private investment
- Time lags in implementation (recognition, administrative, operational lags)
- Inflationary pressure if economy is near full capacity
- Political constraints / public opposition to higher taxes or borrowing
Marking: 1 mark for any valid constraint clearly stated.
2. Define the term "government failure" in the context of policy intervention. [1 mark]
Answer: Government failure occurs when government intervention intended to correct a market failure leads to a net welfare loss or a less efficient allocation of resources than would have occurred without intervention. It arises when the costs of intervention outweigh the benefits, or when intervention creates new distortions.
Marking: 1 mark for a clear definition that includes the idea of net welfare loss or inefficiency resulting from intervention.
3. Identify two macroeconomic goals that may conflict when a government pursues rapid economic growth. [2 marks]
Answer: Any two of the following pairs with explanation:
- Economic growth vs. price stability: Rapid growth may increase aggregate demand, leading to demand-pull inflation.
- Economic growth vs. environmental sustainability: Rapid industrial expansion may increase pollution and resource depletion.
- Economic growth vs. balance of payments stability: Higher incomes may increase imports, worsening the current account balance.
- Economic growth vs. income equality: Benefits of growth may accrue disproportionately to higher-income groups, widening inequality.
Marking: 1 mark for each valid conflict identified (maximum 2 marks). The conflict must be clearly stated; brief explanation is expected but full elaboration is not required for identification.
4. Explain the concept of "time lag" as a limitation of discretionary fiscal policy. [2 marks]
Answer: Time lags refer to delays between when a policy is needed and when it takes effect. Three types exist:
- Recognition lag: Time taken to identify that the economy needs intervention.
- Administrative/implementation lag: Time taken to pass legislation and implement spending or tax changes.
- Operational/impact lag: Time taken for the policy to affect aggregate demand and economic activity.
These lags mean fiscal policy may be implemented too late, potentially destabilising rather than stabilising the economy—for example, expansionary policy taking effect after recovery has already begun, causing overheating.
Marking: 2 marks for explaining the concept with reference to at least one type of time lag and its consequence. 1 mark for a partial explanation (e.g., mentioning lags without explaining why they are problematic).
5. State one advantage and one disadvantage of using regulation rather than taxation to address a negative externality. [2 marks]
Answer:
- Advantage: Regulation provides certainty in outcomes (e.g., a ban or limit guarantees emission reduction); it is simpler to enforce and understand; it may be more effective for highly harmful activities where any level is unacceptable.
- Disadvantage: Regulation is inflexible and does not account for differences in abatement costs across firms; it provides no incentive to reduce pollution beyond the legal limit; it does not generate government revenue; it may be more costly to monitor and enforce.
Marking: 1 mark for a valid advantage, 1 mark for a valid disadvantage. Must be clearly distinguished.
Section B: Data Response and Structured Questions (20 marks)
6. With reference to Extract A, identify one demand-side policy and one supply-side policy mentioned. [2 marks]
Answer:
- Demand-side policy: Jobs Support Scheme (wage subsidy) OR monetary policy adjustments through S$NEER policy band.
- Supply-side policy: SkillsFuture credits (to encourage upskilling and reskilling).
Marking: 1 mark for each correctly identified policy with reference to Extract A. Must distinguish demand-side from supply-side.
7. Using Extract A, explain one potential trade-off Singapore's government faced in implementing its policy mix. [2 marks]
Answer: The trade-off between supporting economic recovery and maintaining price stability. The extract notes that "expansionary policies risked higher inflation." While demand-side measures (Jobs Support Scheme, monetary easing) boosted aggregate demand to support growth and employment, they simultaneously risked creating inflationary pressure, especially if the economy approached full capacity. The government had to balance the need for stimulus against the risk of overheating.
Marking: 2 marks for identifying a valid trade-off from the extract and explaining both sides. 1 mark for identifying the trade-off without explanation.
8. Explain how the Jobs Support Scheme (a wage subsidy) could affect both aggregate demand and aggregate supply in Singapore. [4 marks]
Answer: Effect on Aggregate Demand (2 marks): The Jobs Support Scheme subsidises a portion of workers' wages, helping firms retain employees during downturns. This maintains household incomes that would otherwise fall due to unemployment or pay cuts. With higher disposable incomes than would otherwise be the case, consumption spending is supported, contributing to aggregate demand (C component of AD). Additionally, by supporting business cash flow, the scheme may sustain investment spending (I component of AD).
Effect on Aggregate Supply (2 marks): By enabling firms to retain workers rather than laying them off, the scheme preserves firm-specific human capital and reduces labour market frictions. When recovery occurs, firms can ramp up production quickly without needing to recruit and train new workers. This supports the productive capacity of the economy, contributing to aggregate supply (LRAS). The scheme thus has both demand-side (stabilising incomes and spending) and supply-side (preserving productive capacity) effects.
Marking: Up to 2 marks for explaining AD effects, up to 2 marks for explaining AS effects. Answers should demonstrate understanding of the transmission mechanism.
9. Discuss one reason why supply-side policies such as SkillsFuture may take longer to affect the economy compared to demand-side policies. [2 marks]
Answer: Supply-side policies like SkillsFuture aim to improve the productive capacity of the economy through education, training, and skills development. These involve long processes: individuals must enrol in courses, complete training (which may take months or years), and then apply new skills in the workplace. The impact on productivity and potential output materialises only after these stages. In contrast, demand-side policies such as cash transfers or interest rate changes affect spending and aggregate demand relatively quickly, often within months. The extract itself notes that "supply-side measures would take years to show full effects."
Marking: 2 marks for a clear explanation of the time-intensive nature of supply-side policies with reference to SkillsFuture. 1 mark for a general statement without specific reference.
10. With reference to Extract B, explain how the carbon tax is intended to address market failure. [3 marks]
Answer: The carbon tax addresses the negative externality of greenhouse gas emissions, which is a form of market failure. In a free market, firms do not bear the full social cost of their emissions (e.g., climate change, health impacts), leading to overproduction of carbon-intensive goods. The tax internalises this externality by imposing a cost on each tonne of emissions, raising the private cost of production towards the social cost. This reduces the quantity of emissions-producing output to a more socially optimal level. The revenue is also used to fund green technologies, further reducing emissions over time. The planned increase in the tax rate strengthens this incentive effect.
Marking: 3 marks for a clear explanation covering: (1) identification of the negative externality, (2) how the tax internalises the externality, and (3) the effect on output/emissions. 2 marks for covering two of these elements. 1 mark for a basic statement.
Section C: Essay and Extended Response Questions (20 marks)
11. Evaluate the likely effectiveness of Singapore's carbon tax in reducing greenhouse gas emissions, given the planned increase in the tax rate. [3 marks]
Answer: The effectiveness depends on several factors:
- Price elasticity of demand: If demand for carbon-intensive goods is price inelastic (e.g., electricity generation), the initial low tax of S50–S$80/tonne significantly raises costs, making emission reduction more compelling.
- Availability of substitutes: Effectiveness increases if firms can switch to cleaner technologies. The use of tax revenue to fund energy-efficient technologies supports this transition.
- Coverage: The tax applies to large direct emitters, covering a significant portion of emissions, but smaller sources are excluded, limiting overall effectiveness.
- International competitiveness: If firms relocate to avoid the tax (carbon leakage), global emissions may not fall. However, Singapore's progressive approach and support measures mitigate this risk.
Overall, the planned rate increase should enhance effectiveness, but success depends on complementary policies and firm responses.
Marking: 3 marks for a balanced evaluation considering at least two factors with reference to the extract. 2 marks for one factor well explained. 1 mark for a general statement.
12. Using a diagram, explain how a carbon tax affects the market for goods that generate carbon emissions. [4 marks]
Answer: Diagram: Draw a standard supply and demand diagram. Label axes: Price on vertical axis, Quantity on horizontal axis. Draw downward-sloping demand curve (D) and upward-sloping supply curve (S = MPC, marginal private cost). Show initial equilibrium at P1, Q1. Draw a new supply curve above the original, labelled S + tax = MSC (marginal social cost), reflecting the tax amount. Show new equilibrium at higher price P2 and lower quantity Q2. Shade or label the tax wedge.
Explanation: The carbon tax increases the cost of production for firms, shifting the supply curve upward by the amount of the tax. This internalises the negative externality, as the new supply curve reflects the marginal social cost. The market price rises from P1 to P2, and the equilibrium quantity falls from Q1 to Q2, reducing the overconsumption and overproduction associated with the externality. The tax revenue (P2-P3 × Q2) can be used for green initiatives.
Marking: 2 marks for a correctly labelled diagram showing the tax shifting supply and reducing quantity. 2 marks for a clear explanation linking the diagram to the externality and market outcome.
13. Explain why a policy that successfully reduces unemployment may simultaneously increase inflationary pressure. [2 marks]
Answer: Policies that reduce unemployment (e.g., expansionary fiscal or monetary policy) boost aggregate demand. As the economy moves closer to full employment, spare capacity diminishes. Firms compete for increasingly scarce labour, bidding up wages. Higher wages increase production costs and consumer spending, leading to demand-pull and cost-push inflation. This illustrates the short-run Phillips curve trade-off between unemployment and inflation.
Marking: 2 marks for a clear explanation linking reduced unemployment to increased AD, wage pressures, and inflation. 1 mark for a partial explanation.
14. Discuss the extent to which fiscal policy is more effective than monetary policy in managing the level of economic activity in Singapore. [8 marks]
Answer: Introduction: Both fiscal and monetary policy are used in Singapore, but their effectiveness depends on the economic context, transmission mechanisms, and Singapore's unique circumstances as a small, open economy.
Arguments for fiscal policy being more effective:
- Direct impact: Government spending directly injects demand into the economy (e.g., infrastructure projects, Jobs Support Scheme). Tax changes quickly affect disposable income.
- Targeted measures: Fiscal policy can target specific sectors or groups (e.g., wage subsidies for hard-hit industries, SkillsFuture credits for workers).
- Effectiveness in deep recessions: When interest rates are near zero (liquidity trap), monetary policy becomes ineffective; fiscal stimulus remains potent.
- Supply-side effects: Fiscal measures like education spending and tax incentives can boost long-run aggregate supply.
Arguments for monetary policy being more effective:
- Speed and flexibility: The Monetary Authority of Singapore (MAS) can adjust the S$NEER policy band quickly, without legislative delays.
- Exchange rate channel: In Singapore's highly open economy, exchange rate adjustments directly affect net exports and imported inflation, providing a powerful transmission mechanism.
- Less political interference: Monetary policy is conducted by MAS, which is relatively independent, reducing political business cycle effects.
- No direct fiscal burden: Monetary policy does not increase government debt or require tax increases.
Singapore's context:
- Singapore relies on the exchange rate as its primary monetary policy tool, which is particularly effective for a trade-dependent economy.
- However, fiscal policy has played a crucial role during crises (e.g., COVID-19 support packages), demonstrating its importance when monetary policy alone is insufficient.
- Coordination is key: The policy mix in Extract A shows both used together.
Conclusion: Neither is universally more effective. Monetary policy offers speed and is well-suited to managing inflation and external stability in Singapore's open economy. Fiscal policy is more effective for targeted stimulus and addressing deep recessions. The optimal approach is a coordinated mix, as seen in Singapore's policy framework.
Marking:
- Level 3 (7-8 marks): Balanced discussion with clear arguments for both policies, applied to Singapore's context, with a reasoned conclusion.
- Level 2 (4-6 marks): Some balance but may favour one side; some application to Singapore.
- Level 1 (1-3 marks): Descriptive or one-sided; limited application.
15. Evaluate the view that government intervention to correct market failure always improves economic welfare. [12 marks]
In your answer, you should:
- Explain how government intervention can correct market failure
- Consider circumstances where government intervention may not improve welfare
- Use relevant examples to support your arguments
- Reach a reasoned conclusion
Answer: Introduction: Market failure occurs when the free market fails to allocate resources efficiently, leading to a net welfare loss. Government intervention aims to correct this, but whether it always improves welfare is debatable due to the risk of government failure.
How intervention can correct market failure:
- Negative externalities: Taxes (e.g., carbon tax in Singapore) internalise external costs, reducing overproduction. Regulation (e.g., emission standards) directly limits harmful activities.
- Positive externalities: Subsidies (e.g., SkillsFuture credits) encourage underprovided goods like education. Direct provision (e.g., public healthcare) ensures access.
- Public goods: Government provides non-excludable, non-rival goods (e.g., national defence, street lighting) that the market would underprovide.
- Information asymmetry: Mandatory labelling and regulation (e.g., nutritional information) empower consumers.
- Monopoly power: Competition policy and price controls prevent exploitation and deadweight loss.
Circumstances where intervention may not improve welfare (government failure):
- Imperfect information: Governments may not know the true social costs/benefits, leading to incorrect tax/subsidy levels (e.g., setting carbon tax too low to change behaviour).
- Unintended consequences: Policies can create new distortions. For example, the ABSD in Singapore may reduce housing market liquidity and penalise genuine buyers.
- Administrative costs: The cost of implementing and enforcing policies may exceed the welfare gain (e.g., complex tax collection systems).
- Political influences: Policies may be driven by political motives rather than economic efficiency (e.g., subsidies to politically influential industries, pork-barrel spending).
- Regulatory capture: Regulators may act in the interest of the industry they regulate rather than the public.
- Moral hazard: Intervention like bailouts may encourage risky behaviour (e.g., "too big to fail" financial institutions).
Examples:
- Singapore's carbon tax: Intended to reduce emissions, but if set too low initially, it may have minimal impact, while still imposing compliance costs.
- Housing policies: BTO flats improve affordability (equity) but long waiting times and location constraints may reduce allocative efficiency.
- SkillsFuture: Addresses underinvestment in training, but uptake may be low if individuals lack awareness or motivation, limiting welfare gains.
Conclusion: Government intervention can improve welfare when market failures are significant and policies are well-designed, evidence-based, and efficiently implemented. However, it does not always improve welfare due to the prevalence of government failure. The net effect depends on the specific context, the magnitude of the market failure, and the quality of the intervention. A case-by-case evaluation is necessary, and policies should be subject to rigorous cost-benefit analysis and regular review.
Marking:
- Level 4 (10-12 marks): Excellent evaluation with balanced arguments, clear examples, and a well-reasoned conclusion. Demonstrates understanding of both market failure correction and government failure.
- Level 3 (7-9 marks): Good evaluation with some balance and examples, but may be slightly one-sided or less developed.
- Level 2 (4-6 marks): Adequate explanation of intervention but limited evaluation of government failure; few examples.
- Level 1 (1-3 marks): Descriptive or general answer with little evaluation or application.
Section D: Case Study and Application Questions (10 marks)
16. Identify one demand-side policy and one supply-side policy mentioned in Extract C. [2 marks]
Answer:
- Demand-side policy: Additional Buyer's Stamp Duty (ABSD) to curb speculative demand OR grants for first-time homebuyers.
- Supply-side policy: Construction of Build-To-Order (BTO) flats by HDB.
Marking: 1 mark for each correctly identified policy with reference to Extract C.
17. Explain how the Additional Buyer's Stamp Duty (ABSD) is intended to address a market failure in the housing market. [2 marks]
Answer: The ABSD addresses speculative demand, which can be considered a form of market failure arising from information asymmetry or irrational exuberance, leading to asset price bubbles. Speculative buying drives prices above fundamental values, creating affordability issues for genuine homebuyers and risking financial instability if the bubble bursts. The ABSD increases the transaction cost for additional property purchases, discouraging speculative activity and cooling demand. This helps align market prices more closely with the underlying value of housing as a consumption good, improving allocative efficiency and reducing the risk of market instability.
Marking: 2 marks for explaining the market failure (speculation/bubble) and how ABSD corrects it. 1 mark for a partial explanation.
18. Discuss one potential unintended consequence of the ABSD on the housing market. [2 marks]
Answer: One unintended consequence is reduced market liquidity. By increasing transaction costs, the ABSD may discourage not only speculators but also genuine investors and homeowners from selling and upgrading, reducing the supply of resale flats. This could paradoxically put upward pressure on resale prices in the short term, worsening affordability for some buyers. Additionally, it may encourage investors to shift to other asset classes, potentially creating bubbles elsewhere.
Marking: 2 marks for a clear explanation of an unintended consequence with logical reasoning. 1 mark for a stated consequence without explanation.
19. Using a diagram, explain how a government grant for first-time homebuyers affects the market for new housing. [4 marks]
Answer: Diagram: Draw a standard supply and demand diagram for new housing. Label axes: Price on vertical axis, Quantity on horizontal axis. Draw downward-sloping demand curve (D1) and upward-sloping supply curve (S). Show initial equilibrium at P1, Q1. A grant to first-time homebuyers effectively increases their purchasing power, shifting the demand curve to the right (D2). Show new equilibrium at higher price P2 and higher quantity Q2.
Explanation: The grant reduces the effective price paid by first-time homebuyers, increasing their ability and willingness to purchase new homes. This shifts the demand curve rightward from D1 to D2. As a result, the equilibrium quantity of new housing increases from Q1 to Q2, achieving the policy goal of improving access to homeownership. However, the market price rises from P1 to P2, meaning some of the grant benefit is captured by developers in the form of higher prices, depending on the price elasticity of supply. If supply is inelastic (e.g., due to construction lags), the price increase is larger, and the quantity increase is smaller.
Marking: 2 marks for a correctly labelled diagram showing the demand shift. 2 marks for a clear explanation linking the grant to the demand shift and the resulting price and quantity changes, including reference to elasticity.
20. Evaluate the effectiveness of Singapore's housing affordability measures in achieving both equity and efficiency objectives. [10 marks]
In your answer, you should:
- Explain how the measures address equity and efficiency
- Consider potential trade-offs between equity and efficiency
- Use examples from Extract C and your own knowledge
- Reach a reasoned conclusion
Answer: Introduction: Singapore's housing policies aim to ensure affordable homeownership (equity) while maintaining a stable and efficient housing market (efficiency). Measures include demand-side interventions (ABSD, grants) and supply-side provision (BTO flats). Their effectiveness in achieving both objectives simultaneously is mixed, with inherent trade-offs.
How measures address equity:
- BTO flats: HDB directly provides subsidised housing, ensuring access for lower- and middle-income households. This promotes equity by reducing wealth inequality through homeownership.
- First-time buyer grants: These reduce the financial burden on young couples, improving affordability and intergenerational equity.
- ABSD: By curbing speculative demand from wealthier investors, it helps keep prices more accessible for genuine owner-occupiers, indirectly supporting equity.
How measures address efficiency:
- ABSD: Corrects the market failure of speculative bubbles, improving allocative efficiency by aligning prices with fundamental values and reducing the risk of market crashes.
- BTO system: Matches supply to demand through a balloting system, avoiding the waste of overproduction. It also allows for planned urban development, improving land use efficiency.
- Grants: Can improve dynamic efficiency by enabling labour mobility, as affordable housing allows workers to live near employment centres.
Trade-offs between equity and efficiency:
- BTO waiting times: The supply-side approach, while equitable, suffers from long construction lags (as noted in Extract C). This creates inefficiency as households may not be able to move for work or family needs, reducing labour market flexibility.
- ABSD distortions: While improving market stability (efficiency), the ABSD may penalise genuine investors and reduce liquidity in the resale market, potentially creating inefficiencies in the allocation of existing housing stock. It may also lock homeowners into suboptimal housing situations.
- Grant capitalisation: Grants may be partially capitalised into higher prices (as explained in Q19), reducing their equity impact and transferring benefits to developers, an efficiency loss.
- Resource allocation: Heavy government involvement in housing may crowd out private sector innovation and responsiveness to diverse consumer preferences, potentially reducing dynamic efficiency.
Conclusion: Singapore's housing measures have been highly effective in achieving broad-based homeownership and social equity, a cornerstone of the nation's social contract. However, they are not without efficiency costs, including market distortions, waiting times, and potential misallocation of resources. The government continuously adjusts policies (e.g., adjusting ABSD rates, increasing BTO supply) to balance these objectives. Overall, while the system successfully prioritises equity, ongoing refinements are needed to minimise efficiency losses, and a perfect balance remains elusive.
Marking:
- Level 4 (9-10 marks): Excellent evaluation with balanced discussion of equity and efficiency, clear trade-offs, relevant examples, and a reasoned conclusion.
- Level 3 (6-8 marks): Good evaluation with some balance and examples, but may be slightly one-sided or less developed.
- Level 2 (3-5 marks): Adequate explanation of measures but limited evaluation of trade-offs; few examples.
- Level 1 (1-2 marks): Descriptive or general answer with little evaluation or application.