Author archives: Edmund Quek

  • Due to the upcoming Common Test 1 from 22/03/2021 to 26/03/2021, the lessons from 22/03/2021 to 28/03/2021 will be brought forward to next week (i.e. March Break). In other words, during the March Break, there will an ONLINE lesson on Monday (15 March, 10am-12pm), Tuesday (16 March, 10am-12pm), Wednesday (17 March, 10am-12pm) and Thursday (18 March, 10am-12pm). JC2 students need to attend ONLY ONE of the four brought-forward ONLINE lessons in addition to their regular lesson. There will be no lessons in the week from 22/03/2021 to 28/03/2021 due to Common Test 1. Economics Tuition @ Economics Cafe Principal Economics Tutor: Mr. Edmund Quek
  • Introduction Public goods will not be produced in the absence of government intervention. Public goods are goods that are non-excludable and non-rivalrous. A good is non-excludable when it is impossible or prohibitively costly to prevent non-payers from consuming the good once it has been produced. A good is non-rivalrous when the consumption of the good by a consumer will not reduce the amount available to other consumers. Examples of public goods include national defence and street lighting. As public goods are non-excludable, consumers can consume them without paying for them. Therefore, consumers will want to consume public goods without contributing to their production which is known as the free-rider problem. In other words, the non-excludability of public goods leads to the absence of effective demand. Since consumers have no incentive to pay for public goods, private firms which are profit-oriented have no incentive to produce them. Therefore, in the absence of government intervention, public goods will not be produced due to the non-excludability. Furthermore, as public goods are non-rivalrous, the marginal cost of provision, which is the additional cost resulting from pro[...]
  • Due to the upcoming Chinese New Year which falls on 12/02/2021 (Friday) and 13/02/2021 (Saturday), there will be no lessons on the two days. JC2 students who usually attend the Saturday classes will attend an ONLINE make-up lesson on 09/02/2021 (Tuesday, 5pm-7pm), 10/02/2021 (Wednesday, 5pm-7pm), 14/02/2021 (Sunday, 1.45pm-3.45pm) or 15/02/2021 (Monday, 11.30am-1.30pm). JC1 students who usually attend the Saturday class will attend an online or onsite make-up lesson on 14/02/2021 (Sunday, 10.45am-12.45pm) or 15/02/2021 (Monday, 9.00am-11.00am). Economics Tuition @ Economics Cafe Principal Economics Tutor: Mr. Edmund Quek
  • The JC2 classes on Tuesday (5pm-7pm) and Wednesday (5pm-7pm) will commence on 12 January 2021 and 13 January 2021 respectively. Students who wish to switch to a weekday class can so do simply by informing Mr Edmund Quek through email. Like the classes on weekends, students who choose to attend a weekday class can do so online or onsite. The login details will be the same as those for weekend classes. It is important to note that Mr Edmund Quek teaches in a cycle which starts on Tuesday and ends on Sunday. Therefore, students who are unable to attend their regular classes and wish to come for a makeup lesson should do so in the same week. To put it somewhat differently, a student should not attend two lessons in the same week as the same content will be taught in all the classes in the same week. Economics Tuition @ Economics Cafe Principal Economics Tutor: Mr. Edmund Quek
  • Introduction Income inequity may lead to failure of the free market to allocate some goods and services to the people who need them more. Effective demand is the desire to buy backed by the ability to pay. Ineffective demand is merely the desire to buy not backed by the ability to pay. The free market only responds to effective demand which means that it only distributes goods and services to the people with the willingness and the ability to pay for them. However, the ability to pay for a good does not reflect the need for the good. Therefore, individuals who need some goods and services but do not have the ability to pay for them have to go without the goods and services. In the free market, the prices of goods and services are determined by the market forces of demand and supply. If the income gap is large, high income individuals with a high willingness and ability to pay may push up the prices of some goods and services to the levels which make the goods and services unaffordable to low income individuals with a low ability to pay. This is a matter of concern particularly if the goods and services are necessities. For example, education is a necessity particularly to low incom[...]
  • There will be 4 lessons in December 2020. The first two lessons in the first and second weeks will be on macroeconomics which all students are required to attend. However, the last two lessons in the third and fourth weeks will be on microeconomics revision which ONLY students who joined after the JC1 Promotional Examination are required to attend. In other words, students who joined before the JC1 Promotional Examination are required to attend 2 lessons in December and students who joined after the JC1 Promotional Examination are required to attend 4 lessons. Nonetheless, students who joined before the JC1 Promotional Examination but wish to attend the last two lessons in the third and fourth weeks which will be on microeconomics revision are allowed to do so. This is especially true for students who joined at a time which was near the JC1 Promotional Examination and hence have a relatively weak foundation in microeconomics. Economics Tuition @ Economics Cafe Principal Economics Tutor: Mr. Edmund Quek
  • The classes for junior college one students in 2021 will commence on 14 November 2020. There will be two classes in November and December 2020 which will be conducted from 4.15pm to 6.15pm on Saturday and from 10.45am-12.45pm on Sunday. There will be a class from 5pm to 7pm on Friday in 2021. Economics Tuition @ Economics Cafe Principal Economics Tutor: Mr. Edmund Quek
  • The following is the November class schedule. First Lesson On 07/11/2020, H2 students will attend the lesson at 10.45am-12.45pm or the lesson at 4.15pm-6.15pm. On 08/11/2020, H1 students will attend the lesson at 10.45am-12.45pm. Second Lesson (only for H2 students) H2 students will attend ONLY one of the lessons 14/11/2020, 10.45am12.45pm 17/11/2020, 7.15pm-9.15pm Please continue to read the essays and pick up as many concepts as you can. In the event that you encounter any problems, please do not hesitate to approach me. Note: The login link will be the same. Economics Tuition @ Economics Cafe Principal Economics Tutor: Mr. Edmund Quek
  • Introduction Interest rate is the cost of borrowing and the reward for lending. Foreign direct investment refers to direct investment made in the economy by foreign firms. Many students think that a fall in interest rates will lead to an increase in foreign direct investment. Mr. Edmund Quek will engage in a more detailed discussion with the students in economics tuition on this economic misconception. Exposition A fall in interest rates will lead to a fall in the costs of borrowing. When this happens, the number of profitable planned investments will increase which will induce firms to increase investment expenditure. Investment expenditure comprises investment expenditure made by domestic firms and investment expenditure made by foreign firms which is called foreign direct investment. It is correct to say that a fall in interest rates will lead to an increase in investment expenditure made by domestic firms as they generally borrow in the domestic economy to finance their investments. However, many students think that a fall in interest rates will also lead to an increase in foreign direct investment. This is erroneous. Unlike domestic firms, foreign firms generally do not [...]
  • (a)   Explain why Singapore chooses to use the exchange rate rather than interest rates as the policy instrument of its monetary policy. [10] Introduction Monetary policy is a demand-side policy that is used to control the money supply and interest rates to influence aggregate demand. Monetary policy can be used to increase economic growth, decrease unemployment and reduce inflation. Aggregate demand is the total demand for the goods and services produced in the economy over a period of time and is comprised of consumption expenditure, investment expenditure, government expenditure on goods and services and net exports. To increase economic growth or decrease unemployment in an economy where interbank rates are lower than the bank rate and hence banks borrow from each other, such as the United States and Japan, the central bank can increase the money supply by conducting an open market purchase. When the money supply increases, the amount of reserves in the banking system will rise. When this happens, interbank rates will fall which will lead to a fall in the level of interest rates in the economy. For example, the Federal Reserve increased the money supply to lower the f[...]
  • Due to the Preliminary Examinations, the lessons from 14/09/2020 to 20/09/2020 will be brought forward to the week from 07/09/2020 to 13/09/2020. This means that there will be two lessons in the week from 07/09/2020 to 13/09/2020 (i.e. September Break) and no lesson in the week from 14/09/2020 to 20/09/2020 (i.e. Preliminary Examinations). The lessons in other weeks will be conducted as usual. Students who attend the Tuesday Class and Wednesday Class will attend an online lesson from 9am to 11am on 08/09/2020 (Tuesday) in addition to the regular lesson in the week. Students who attend the Saturday Classes will attend an online lesson from 9am to 11am on 09/09/2020 (Wednesday) in addition to the regular lesson in the week. Students who attend the Sunday Class will attend an online lesson from 9am to 11am on 10/09/2020 (Thursday) in addition to the regular lesson in the week. Note: The login link will be the same. Economics Tuition @ Economics Cafe Principal Economics Tutor: Mr. Edmund Quek
  • Introduction Substitutes are goods which are consumed in place of one another such as Coke and Pepsi. The cross elasticity of demand (XED) for a good with respect to another good is a measure of the degree of responsiveness of the demand for the first good to a change in the price of the second good, ceteris paribus. Many students think that public transport is not a close substitute for private cars for the same reason why private cars are not a close substitute for public transport. This economic misconception will be discussed in economics tuition at Economics Cafe. Exposition Private cars and public transport are substitutes as the two goods are consumed in place of one another. However, although some students argue that the two goods are close substitutes, some students argue that they are not. The truth is, whether private cars and public transport are close substitutes varies from individual to individual. However, the problem is that many of the students who argue that private cars and public transport are not close substitutes have not fully understood the relationship between the two goods. In particular, they think that public transport is not a close substitu[...]