Question:

5 In 2020, Singapore experienced a decrease in both its population size and its labour force. 2020
was a year of great change in a number of Singaporean markets. Some moved from disequilibrium
to equilibrium. Despite all these changes, Singapore managed to increase its exports of goods
and services.
(a) Identify two benefits of a decrease in a country’s population size. [2]
(b) Explain how a market moves from disequilibrium to equilibrium. [4]
(c) Analyse, using a production possibility curve (PPC) diagram, the effect of a decrease in the
size of a country’s labour force on its economy. [6]
(d) Discuss whether or not an increase in exports will benefit an economy. [8]

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