U.S. recyclers are fighting to stay alive. Prices for new materials have fallen so much in the past few years that recycled materials have lost their edge in the market.
economics
Description
Answer ALL questions.
Extract 1: [Total: 14 marks]
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U.S.
recyclers are fighting to stay alive. Prices for new materials have fallen so
much in the past few years that recycled materials have lost their edge in
the market. Besides, some states such as California had cut their subsidies
in state-run programs. Global
forces have put the squeeze on recyclers. Growth in China, the largest buyer
for several types of recycled materials, has slowed significantly. Beijing
even erected a so called “Green Fence”, which enacted standards on imports of
Americans’ recycling. Add to that a strong dollar, which makes buying U.S.
materials more expensive for customers in other countries. Meanwhile,
oil prices have dropped to the lowest level in around 13 years. This is
expected to have further negative effect on the price paid for recycled
materials such as recycled plastics. As new plastics, which are produced from
petroleum, become more cheaply available, manufacturers buy less recycled
plastics. Sources:
The Seattle Times, 5 March 2016 and Forbes, 14 September 2016. |
1. With reference to Extract 1:
(a) Identify 3 main reasons for the
falling demand for U.S recycled materials. [max. 60 words] (3 marks)
(b) Explain how a fall in the price of
crude oil might impact the price of recycled plastics. Use demand and supply
diagrams to illustrate and explain your answers. [max. 70 words] (11 marks)
Extract 2: [Total: 15 marks]
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Overweight
and obesity in Malaysia is an issue of growing concern and one that is
frequently debated. The introduction of an excise tax of 40 sen per litre on
sugary drinks and the introduction of a healthy school breakfast programme
are timely and welcome steps in the right direction. Malaysia
is now the fattest nation in Asia and has the second highest child obesity
rate among children in ASEAN aged 5 to 19 years, with 7.1% of children under
the age of 5 being overweight. Consuming sugary drinks contributes to weight
gain and obesity, and then a range of noncommunicable diseases such as
diabetes, heart disease, stroke and cancer. The
economic cost to Malaysia is huge; proportionally it is the highest in ASEAN.
In 2017, overweight and obesity accounted for 13.3% of total health costs,
0.54% of GDP or USD 1.7 billion, and this does not include the indirect costs
of lost labour productivity due to absenteeism or medical leave. This is a
cost that Malaysia can ill afford. Malaysians’
consumption of sugary drinks has increased dramatically over the past 15
years, in tandem with rising incomes. More than one third (36%) of students
have sugary drinks at least once a day, and the average daily sugar intake
for adolescents has increased from seven teaspoons in 2012 to 10 teaspoons in
2017—that is more than the recommended limit for adults. On average,
Malaysians consume around 3kg of sugar per year in the form of sugary drinks.
Given
the evidence, no one can dispute the rationale for the new tax on
sugar-sweetened beverages (SSB) as a strategy for reducing consumption of
these products. Increasingly, countries are adopting taxation on sugary
drinks and foods to address child obesity. More than 50 countries around the
world have already implemented such taxes, including Brunei Darussalam, the
Philippines, and Thailand in Southeast Asia. Sources:
UNICEF organisation Malaysia, 6 May 2019. |
