Economics 9708/21 May June 2013

The user can download the PDF file for detailed review. Key questions summarized:

1. Analysis of China's dominance in the global production of rare earth elements (REEs) and its implications for global supply and prices.
2. Evaluation of the increasing demand for REEs driven by technological advancements and industrial applications in sectors like electronics, energy, and defense.
3. Discussion of the social and environmental costs of REE mining, including pollution, land degradation, and health risks.
4. Examination of China’s economic rationale for reducing REE export quotas, focusing on protecting domestic resources and enhancing bargaining power.
5. Debate on the sustainability of China’s dominance in the REE market amidst rising global prices and diversification efforts by other nations.
6. Assessment of government policies in addressing market failures for merit and demerit goods, ensuring efficient resource allocation and correcting pricing distortions.