2013 hkdse economics paper 1 & 2 suggested answers … 2013 hkdse economics paper 1 & 2...

2013 HKDSE Economics

Paper 1 & 2 Suggested Answers

2013 文憑試經濟卷一及二建議答案

by Raymond KwoK

英皇教育資深經濟科補習導師 web : http://www.raymondkwok.net

email / facebook : [email protected]

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2012 – 13 版權所有 • 不得翻印、出售 All rights reserved / No unauthorized photocopying or sale / Raymond Kwok

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2013 HKDSE Economics examination Suggested Answers & Explanations

Paper 1 ffaacceebbooookk..ccoomm//kkwwookkjjiinngg 1. C 6. D 11. B 16. A 21. A 26. C 31. B 36. C

2. C 7. D 12. A 17. D 22. A 27. B 32. B 37. D

3. D 8. A 13. B 18. A 23. D 28. B 33. A 38. A

4. B 9. A 14. C 19. B 24. B 29. A 34. C 39. A

5. C 10. D 15. D 20. D 25. B 30. D 35. A 40. C

這卷一的建議答案由英皇教育資深經濟科補習導師 Raymond Kwok 製作，

並已於 2013 年 4 月 17 日 12:00pm 上載至 www.facebook.com/kwokjing。 Paper 1 explanation : 1. Answer = C

Determining the ratio of public housing to private housing : what to produce The worry about the shopping malls mainly serving mainland tourists : for whom to produce

2. Answer = C A,B &D. These only decrease the value of watching the match. C. As more time is used in watching the match, the value of the highest-valued

alternative use of the time increases. Cost increases.

3. Answer = D Output (units) 0 1 2 3 4 5 Total cost ($) 10 28 42 52 60 72 Average cost ($) - 28 21 17.33 15 14.4 A. No information on whether the firm is in a short run or a long run production is

given. B. As the total and average costs of 5 units of output onwards are not known, this

conclusion cannot be drawn. C. No data on total variable cost is given. D. The total cost at 0 unit of output is the total fixed cost.

貼題勁準貼中勁多貼題之王當之無愧


http://www.facebook.com/kwokjing�



4. Answer = B Machines

(units) Labour (units)

Average product (units)

Total product (units)

Marginal product (units)

2 3 30 90 - 2 4 40 160 70 2 5 50 250 90 2 6 55 330 80

As machines is a fixed factor, it is a short run situation. As marginal product eventually diminishes from 90 to 80 units of output, the law of diminishing returns applies.

5. Answer = C As this reduces the average costs of all private hospitals, it is an external economies of scale.

6. Answer = D A. It is a public good if concurrent consumption is possible, but not if citizens can enjoy

the broadcast of matches in public areas. B. It is a public but not a private good. C. It is an economic good since more are preferred, people are willing to pay a price to

watch it, more of the broadcast are preferred and opportunity cost is involved in its production.

D. It is a producer good if it is used to assist to production of other goods, e.g., football training services.

7. Answer = D

A. Time rate does not improve working incentives. B. This is not the reason why time rate is adopted, and some teachers (e.g., Raymond

Kwok) may not prefer stable income. C. This is not the reason why time rate is adopted, and a lot of teachers (except

Raymond Kwok) are lazy. D. As the output of a teacher is not standardized, i.e., many different duties are

performed, if piece rate is chosen, it is costly to measure their outputs. Hence time rate is chosen to save the costs of measuring their outputs quantity.

8. Answer = A

Backward integration can ensure steady supply of raw materials. Horizontal integration can enlarge the market share.

9. Answer = A (1) A partnership is not a legal entity while a private limited company is. (2) Since the transfer of shares of a private limited company requires the consent from

the board of directors, the risk of being taken over is not higher. (3) The profits tax rates for partnership and limited company are 15% and 16.5%

respectively in the fiscal year 2013 – 14. (4) The number of owners of partnership is (normally) 2 – 20, while that of private

limited company is 1 – 50. The number of owners MAY increase, but WILL NOT NECESSARILY increase.




10. Answer = D When deriving the market demand curve, all other relevant factors (e.g., income of consumers, prices of related goods, preference of consumers, number of consumers, weather, etc.) affecting the consumption decision EXCEPT the present actual price of the good are held constant. The other factors are the exogenous factors, while the equilibrium price and quantity of the goods are the endogenous factors in the demand and supply analysis.

11. Answer = B The recession in the mainland decreases the demand for the watches (assuming the watches are normal goods). The increase in rental of shopping premises decreases the supply of watches.

12. Answer = A (1) ↓Px ↑Qdx, if Y is a substitute of X ↓D for Y ↓Py (2) ↓Px ↑Qdx, if Y is a complement of X ↑D for Y ↑Py (3) ↓Px ↓Qsx, if X & Y are in competitive supply ↑S of Y ↓Py (4) ↓Px ↓Qsx, if X & Y are in joint supply ↓S of Y ↑Py

13. Answer = B P ($) 2 3 4 P1 = 5 P2 = 6 7 8 Qd 90 80 70 Q1 = 60 Q2 = 50 40 30 Initial Qs 30 40 50 Q1 = 60 70 80 90 New Qs - - 30 40 Q2 = 50 60 70 New quantity transacted = 50 units New equilibrium price = $6 Total sales revenue net of tax = $(6 – 2) x 50 = $200

14. Answer = C The initial price floor at P2 is ineffective. Total revenue is P1 x Q1. The new price floor at P1 is also ineffective. Total revenue remains constant at P1 x Q1.

15. Answer = D (1) As the maximum rent control is effective, it is below the equilibrium level. Shortage

exists. (2) As the right to freely determine rent and receive income is attenuated, the landlords

have less incentives to rent out their flats, since the total rental income received is less than that received in market equilibrium.

(3) Owing to the reasons in (2), the incentive to maintain the quality of the rental flats is also lower.




16. Answer = A A. Inconsistent. When the per-unit import tariff is raised, the relative price of higher to

lower quality garment decreases. The consumption proportion of higher quality garment increases. The average quality also increases.

B. Consistent. When the unemployment benefit is reduced, the cost of taking up jobs decreases. More people will take up jobs, and the number of unemployment rate decreases.

C. Consistent. This increases the risks and expected costs of visiting the country with political unrest. Less tourists will visit those countries.

D. Not inconsistent. When the expected price increases, the present demand increases, which increases the present price of the shares.

17. Answer = D

The electric power industry in Hong Kong is monopoly. On Hong Kong Island and Lamma Island, electricity supply is only provided by Hong Kong Electric Co. Ltd. On Kowloon peninsula, the New Territories and all outlying islands (except Lamma Island), it is only provided by the China Lights & Power Co. Ltd.

18. Answer = A A. When the output level is reduced from the equilibrium output level at QP to the

efficient output level at QE, total social surplus will increase by the yellow shaded area.

B. At the equilibrium level, marginal private benefit equals marginal private cost, while marginal social benefit is less than marginal social cost.

C. Equilibrium condition with deadweight loss does not imply that the sum of consumers surplus and producers surplus, i.e., total social surplus is maximized.

D. Without knowing the transaction costs involved for the government to intervene, we cannot draw such conclusion. Also, ‘necessary’ is normative.

$

Quantity

MPC

MPB = MSB

MPC : Marginal private cost MXC : Marginal external cost MSC : Marginal social cost MPB : Marginal private benefit MSB : Marginal social benefit QP : Market equilibrium output QE : Efficient output level

MSC

QE QP

MXC

Deadweight loss due to

over-production

Efficient output (MSB = MSC)

0

Equilibrium output (MPB = MPC)




19. Answer = B

-

+

0 Quantity

Price

S1

D0

S0

P1

Q1

S2

P2

Q2

(1) The total expenditure may increase or decrease, which depends on the price elasticity of demand for the good.

0 Quantity

Price

S1

D0

S0

P1

Q1

S2

P2

Q2

(2) As the price increases but the quantity transacted decreases, consumers surplus decreases.

↓CS

0 Quantity

Price

S1

D0

S0

P1

Q1

S2

P2

Q2

(3) As the quantity transacted decreases, total social surplus decreases.

↓TSS




20. Answer = D A. With external benefit, the honey is under-produced. B. This involves value judgment, and cannot be concluded. C. No such concept. D. If the orchard nearby is also owned by the beekeeper, the benefit is not external but

internal.

21. Answer = A A. The Japanese teacher working in Hong Kong for one year is a Hong Kong resident,

and his income is NOT an external factor income outflow. B. This is an external factor income inflow of Hong Kong from Canada. C. Assuming that the Indian usually lives in India on a long term basis, this is an external

factor income outflow from Hong Kong to India. D. This is an external factor income outflow from Hong Kong to US.

22. Answer = A GDPMP = $(120 + 40 + 10 + G + 80 – 60 + 20 – 30) million $200 million = $180 million + G G = $20 million

23. Answer = D A. This leads to a movement along the aggregate demand curve. B. This leads to a rightward shift of the short-run and long-run aggregate supply curves. C. This makes imports cheaper, increases imports and decreases net exports. The

aggregate demand curve shifts to the left. D. This increases the disposable income of the households, increases consumption and

leads to a rightward shift of the aggregate demand curve.

24. Answer = B As the equilibrium output is greater than the full-employment output, an inflationary (output) gap (IG) exists. A. A rise in transfer payment to the poor increases their disposable income.

Consumption and aggregate demand increases. The IG further increases in size. B. A rise in the discount rate decreases money supply and increases interest rate.

Consumption, investment and aggregate demand decrease, which eliminates the IG.

25. Answer = B (1) Legal tender held by licensed banks are reserves held by authorized institutions,

which are not included in M1, M2 nor M3. (2) Demand deposits with licensed banks is included in M1, M2 & M3. (3) Time deposits with restricted licence banks is included in M3 but not in M1 nor M2. (4) Negotiable certificate of deposits issued by licensed banks held by the non-bank

public is included in M2 and M3 but not M1.




26. Answer = C Required reserves = $(400 – 160) million = $240 million

Required reserve ratio = 100% x million $1,200

million 240$ = 20%

When $100 million is withdrawn and the banks lend out all excess reserves, the final

amount of deposits = $300 million x %20

1 = $1,500 million.

Money supply = $(1,500 + 200 + 100) million = $1,800 million

27. Answer = B A. This leads to a downward movement along the money demand curve but not a

rightward shift. B. This increases transaction money demand and leads to a rightward shift of the

money demand curve. C. This decreases transaction money demand and leads to a leftward shift of the money

demand curve. D. This increases money supply and leads to a rightward shift of the money supply

curve.

28. Answer = B (1) Providing cash subsidies to agricultural workers is not monetary policy. The Ministry

of Finance is not the central bank of mainland China. (2) Reducing the required reserve ratio of all commercial banks by the central bank of

China, i.e., the People’s Bank of China increases money supply. This is an expansionary monetary policy.

(3) The Bank of China is not the central bank of mainland China.

29. Answer = A When the tax allowance on continuing education is increased, people spend more on continuing education. Aggregate demand increases. Receiving more education increases labour productivity. Both the short-run and long-run aggregate supplies increase.

30. Answer = D A decrease in the desire to consume decreases imports. With a constant exports, net exports increases. A decrease in the desire to consume also decreases the transaction money demand.




31. Answer = B A. A reduction in salaries and profit taxes increase consumption, investment and

aggregate demand, leading to the existence of an inflationary (output) gap. B. A reduction in money supply increases interest rate, decrease consumption,

investment and aggregate demand, leading to the existence of a deflationary (output) gap. When national income decreases, the tax revenue of the government also decreases. When tax revenue is less than government expenditure, a budget deficit is resulted.

C. A reduction in government expenditure decreases aggregate demand, national income and tax revenue. As the former is greater than the latter, a budget surplus is resulted.

D. A reduction in the desire to import increases net exports, aggregate demand and output level, leading to the existence of an inflationary (output) gap.

32. Answer = B

The quantity theory of money (QTM) : M V = PY. In growth rate form, m = p + y, where m, p & y stand for the growth rates of money supply, price level and real output. m = p + y p = m – y. (1) When m > y p > 0 the price level is increasing. (2) No necessary data to draw such conclusion. (3) In the QTM, the velocity of money circulation is assumed to be constant. (4) When both the price level and the output level are increasing, the nominal output

(i.e., P x Y) is also increasing.

33. Answer = A All are the economic phenomena of a contracting economy, i.e., recession.

34. Answer = C In an unanticipated inflation, as the general price level is higher, the real value or the purchasing power of a fixed amount of money is lower. Net monetary debtor gains. A. If the floating interest rate is adjusted according to the actual inflation rate, the loan

shark does not gain nor lose. B. As the real value or the purchasing power of the fixed salary received by the

manager decreases during inflation, he / she loses. C. As the real value or the purchasing power of the fixed interest paid by the flat-owner

decreases during inflation, he / she gains. D. As the real value or the purchasing power of the fixed dividends received by the

teacher decreases during inflation, he / she loses.




35. Answer = A A. The same amount of levy takes a smaller proportion of the income of the rich than

the poor, hence it is regressive but not proportional in nature. B. As only the chain or large supermarkets need to pay the levy, and the existing

electronic payment systems (i.e., credit card, EPS) can be used to collect the levy, the administration costs will not be very high. This collection is in line with the economy principle.

C. As customers may pay through cash or electronic payment systems (i.e., credit card, EPS), this collection is in line with the convenience principle.

D. As it is clearly specified that the levy is imposed on each shopping bag at the retail level, with the first phase covering chain or large supermarket, convenience stores and personal health and beauty product stores, with the exemption of small shops in the first phase, this collection is in line with the certainty principle.

36. Answer = C

A. The new tax structure has a larger personal allowance. B. The new tax structure has a higher standard tax rate. C. As the non-tax payers, low and middle income tax payers pay less tax while the high

income tax payers paying at a higher standard tax rate, the income gap between the rich and the poor is narrowed.

D. As the working incentives of the non-tax payers, low and middle income tax payers increase, while that of the high income tax payers paying at a higher standard tax rate decreases, the change in tax base is uncertain.

37. Answer = D

The appreciation of the currency of the country decreases the prices of imports (in terms of domestic currency) and increases quantity demanded. A. If demand is unitarily elastic, the decrease in price does not affect the total

expenditure (in terms of domestic currency). B&D. If demand is inelastic, the decrease in price decreases the total expenditure (in terms

of domestic currency). C. If demand is elastic, the decrease in price increases the total expenditure (in terms of

domestic currency).




38. Answer = A The opportunity costs of the two countries : Rice (R) (units) Computers (C) (units)

Thailand # 1R = 0.33C (=155 ) 1C = 3R (=

515 )

Japan 1R = 0.5C (=2412 ) #1C = 2R (=

1224 )

# = comparative advantage exists (1) Japan has a comparative advantage in producing computers, since her cost of

producing 1C at 2R is less than that of Thailand at 3R. (2) Without knowing the resources endowment of the two countries, no conclusion can

be drawn on absolute advantages. (3) The total output of both goods before trade :

Rice (R) (units) Computers (C) (units) Thailand 15 AND 5 Japan 24 AND 12 Total 39 AND 17

When there is complete specialization according to the principle of comparative advantage, the total output of both goods are : Rice (R) (units) Computers (C) (units) Thailand 30 AND 0 Japan 0 AND 24 Total 30 AND 24 The total output of rice decreases, while that of computers increases.

39. Answer = A

Japan exports computers, since her cost is lower. Japan’s cost of producing and transporting 1C = 2R + 0.1R = 2.1R Terms of trade : 1C = 2.4R per-unit net gain = 2.4R – 2.1R = 0.3R Net gain from exporting 5C = 0.3R x 5 = 1.5R

40. Answer = C (1) Hong Kong dollar banknotes are fully backed by the US dollar only at the linked rate

of HK$7.8 = US$1. (2) The HKMA needs to holds a considerable amount of foreign exchange reserves, so as

to maintain the linked exchange rate system whenever there is huge inflow or outflow of capital.

(3) This is one of the basic features of the present linked exchange rate system. (4) The exchange rate of the Hong Kong dollar to the US dollar in the foreign exchange

market is not fixed. Only the linked rate is fixed at HK$7.8 = US$1.




2013 HKDSE Economics examination Suggested Answers

Paper 2 1. Heterogeneous services (1) : different tours are provided by different travel agencies (1).

Imperfect information (1) : it is costly to obtain information on tour fees and schedules of different tours (1).

2. (a) The entire and complete THREE rights : the exclusive right to use a property, the exclusive right to transfer a property, and the exclusive right to earn income from a property (2). Since the flats cannot be freely sold to non HK permanent residents within 30 years, the exclusive right to transfer the flats is attenuated (2).

(b) Lower (1), since the demand for such flats with the restriction only comes from HK

permanent residents (1), which is less than the demand for the flats without the restriction from HK permanent residents and non-HK permanent residents (e.g., foreign investors) (1).

3. (a) Nominal interest rate = expected inflation rate + expected real interest rate (2).

(b) No (1). If such actual deflation is unanticipated, and if inflation was expected when

the nominal interest rate was set (1), the nominal interest rate would still be higher than the expected real interest rate (1).

4. (a) It is due to the wealth effect (1). When the general price level increases, the real

value or purchasing power of cash (i.e., asset money) decreases (1). Such decrease in wealth decreases the consumption expenditure of the households, and decreases the aggregate output demanded (1). OR

It is due to the interest rate effect (1). When the general price level increases, the real money supply decreases. This increases the real interest rate (1). Both consumption and investment expenditure decrease. The aggregate output demanded decreases (1). OR

It is due to the exchange rate effect (1). When the local general price level increases, less local output can be bought with the same amount of foreign currency, i.e., the real exchange value of foreign currency decreases (1). When foreigners buy less local output, net exports and the aggregate output demanded decrease (1). Any ONE reason above, only the FIRST reason will be marked.




(b)

The increase in the price of raw materials decreases the short-run aggregate supply (1). In the short run, the price level increases (1). In the long run, as the aggregate output is less than the potential output, the surplus in the labour market (1) decreases the nominal wage rate and increases the short-run aggregate supply (1). Eventually the price level decreases back to P0 (1).

5. (a) The cost for Country A to produce 1 unit of smartphones is 0.75 units of food (1),

while that for Country B is 0.5 units of food (1). As the cost for Country B is lower, Country B has a comparative advantage in producing smartphones (1).

(b) The total gain per unit of smartphones traded to the two countries is 0.25 (= 0.75 –

0.5) units of food (1). With the transport cost, such total gain decreases to 0.05 (= 0.25 – 0.2) units of food (1). It is still possible to have mutually beneficial trade between the two countries (1).

6. (a) $5million. (Optional explanation : current account balance = $(35 + 47 – 50 – 27)

million = $5 million.) (b) Disagree (1). A $10 million credit entry of foreign exchange and reserves assets

implies an overall balance of payment deficit of $10 million (2).

Y

P

0

SRAS1

P1

Y0 = Yf

AD0

LRAS0

Y1

SRAS0

P0

Diagram :

1 mark for SRAS0 shifts left

to SRAS1

1 mark for P0 increases to

P1 and Y0 decreases to Y1

1 mark for SRAS1 shifts

right to SRAS0

1 mark for P1 decreases to

P0 and Y1 increases to Yf

E0

E1




7. (a) Construction (1), since the Gini coefficient for such occupation is lower (1). The two possible reasons are : the different jobs in construction occupation have similar level of skills requirement, while the different jobs in financing, insurance, real estate and business services have different level of skills requirement (1). there are less variety of jobs with different skills requirement in the construction occupation (1). the proportion of women workers in construction industry is less than that in financing, insurance, real estate and business services, hence there is less sexual discrimination against women workers in construction industry.

(b) The increase in Gini coefficient in Hong Kong from 0.533 in 2006 to 0.537 in 2011 implies a more uneven income distribution (1). Since from 2006 to 2011, a smaller proportion of labour force joins the construction occupation, while a larger proportion joins the financing, insurance, real estate and business services (1). As the Gini coefficient of the former occupation is less than the latter (1), this makes income more unevenly distribution in Hong Kong during the period (1).

8. From the viewpoint of tax payers : should not (1), since their disposable income will

decrease (1). From the viewpoint of the non-tax payers : should (1), since they still don’t need to pay any tax but may enjoy more social services when the government does not have budget deficit anymore (1). From the viewpoint of the government : should (1), if the increase in income tax rate can raise tax revenue and reduce the budget deficit (1). OR From the viewpoint of the government : should (1), if the increase in income tax rate actually reduces tax revenue and enlarges the budget deficit (1). From the viewpoint of workers : should not (1), since this decreases the disposable income and consumption of tax payers. When aggregate demand decreases, employment level also decreases (1).




Section B 9. (a)

When the fare increases, quantity demanded decreases (1). If demand is inelastic (Ed < 1), i.e., the percentage decrease in quantity demanded is less than the percentage increase in fare (1), the increase in total revenue will be greater than the decrease (1).

(b) No, because (1) : the quantity of the free journey is insufficient to satisfy all wants for it (1). OR more of the free journey are preferred (1). OR people are willing to pay a price for the journey (1). OR opportunity cost is involved in providing the free journey. (2)

Any ONE reason above, only the FIRST reason will be marked. (c) Not necessarily, because (1) the value of the highest-valued alternative use of the

time (e.g., income forgone) spent on waiting could be different to different passengers (2).

10. (a) Division of labour (1). Reasons for increasing labour productivity :

choosing the most suitable persons for the job (1) practice makes perfect / learning by doing (1) saving time from training (1) saving time from moving around tasks (1) stimulus to mechanization (1)

Only the FIRST THREE points will be marked. (b) (i) As the bonus of the manager directly depends on his performance, his

working incentives and hence the sales revenue of the restaurant will be higher (2)

(ii) As a basic salary is provided, the manager can be certain of a certain

minimum amount of salary even though the business of the restaurant is not good (2).

Q 0

P

P2

P1

Q1 Q2

D

Diagram : 1 mark for ↑P & ↓Q 1 mark for + > -




(c)

Suppose an effective minimum wage is set at WM which is above the initial equilibrium wage rate (1). If there is strong economic recovery (1), so that the derived demand for labour increases (1), the quantity demanded at L3 may be greater than the quantity supplied at L2 (1), and a shortage may exist (1).

OR Suppose an effective minimum wage is set at WM which is above the initial equilibrium wage rate (1). If the restaurant workers are attracted to other occupations offering better non-monetary benefits (e.g., more comfortable work, better working environment, better fringe benefits, promotion prospects, etc.) (1), so that the supply of restaurant workers decreases (1), the quantity demanded at L1 may be greater than the quantity supplied at L3 (1), and a shortage may exist (1).

W

Quantity of restaurant workers 0

S

D1 D2

L1 L2 L3

surplus

shortage

WM

Diagram : 1 mark for the minimum

wage WM set above the initial equilibrium

1 mark for the surplus 1 mark for the increase in

demand 1 mark for the shortage

Diagram : 1 mark for the minimum

wage WM set above the initial equilibrium

1 mark for the surplus 1 mark for the decrease in

supply 1 mark for the shortage

W

0

S1

D

L3 L1 L2

surplus

shortage

WM

S2

Quantity of restaurant workers




11. (a) Yes, because (1) only the households with employed members meeting the maximum income and assets restrictions can apply (1). Their travelling expenses can be reduced (1), and they are encouraged to continue their employment.

(b) (i) The geographical mobility of the workers is raised (1), since they are more

willing to travel to work (2). (ii) Income inequality is reduced (1), since only the low-income workers but not

the high-income workers are eligible to apply for the subsidy (2). (iii) The unemployment rate will decrease (1), since the scheme encourages

workers to be employed (2).

12. (a) Monetary base = $(1,000 + 400) million (1) = $1,400 million (1) Money supply = $(1,000 + 2,000) million (1) = $3,000 million (1)

(b) New money supply = $400 million x (1 / 25%) + $1,000 million (1)

= $2,600 million (1) (c)

An upward adjustment of the required reserve ratio decrease the money supply (1) and increases interest rate (1). Consumption and investment decrease (1), which decrease aggregate demand (1). In the short run, both the price level and the output level decrease (2).

0

AD2

SRAS

P2

Y2

P

AD1

P1

Y1 Y

Diagram : 1 mark for the decrease in AD 1 mark for the decrease in P & Y




Section C 13. (a)

In a monopoly market, the market demand curve is the marginal benefit (MB) curve of the consumers (1). When the average cost of production is constant, marginal cost (MC) of production is also constant (1). To maximize profit with simply monopoly pricing, the monopolist will produce at Q1 with MR = MC and charges a price at P1 = marginal benefit (1). For the quantities Q1 to Q2, as MB is greater than MC, not producing them implies the existence of a deadweight loss (1).

(b) Price discrimination (PD) means the same output produced by the same seller at the

same cost is sold to different customers under different pricing arrangements (2). It is PD, because the same output sold by the same seller at the same cost is sold at a higher price to local residents who do not show up their travel documents (1).

(c) (i) Resale price maintenance (1). Free price competition among the retailers is

restrained (1) (ii) Predatory pricing / predatory price cutting (1). Other bus companies charging

fares higher than those charged by this major bus companies lose customers and may be driven out of the market (1).

(d) The concern for introducing competition policy :

Should there be a cross-sector or sector-specific competition policy? What scope of behaviour is to be covered by the competition policy? Is there any exclusion or exemption to the competition policy? Should the violation of the competition law a criminal or civil offence? Is a competition policy really necessary?

Any ONE above, only the FIRST POINT will be marked.

Price ($)

Quantity 0

P0

Q0

D = AR = MB MR

Q1 Q2

P1

AC = MC

P = MB

MR = MC

deadweight loss

Diagram : 1 mark for MR curve lying below D curve 1 mark for indicating constant AC = MC 1 mark for correctly indicating Q1 & P1 1 mark for the deadweight loss




14. (a) The opportunity cost for Country A to produce 1Y is 2.5Y (1). Since her cost is higher than the terms of trade (TOT) at 1X = 1Y, she will import Good Y (1).

(b)

(iii) The direction of trade will not be affected (1). Country A will be better off (1),

since the consumption possibilities frontier is enlarged (1).

(b) (i) Hong Kong (1), since Hong Kong’s GNP per capita ranks at 9 [=13 + (-4)] is higher than Japan’s rank at 23 (= 11 + 12) (1).

(ii) The TWO reasons are :

Japan may have a better human development in health, resulting in a higher life expectancy at birth (1)

Japan may have a better human development in education, resulting in a higher expected and average years of schooling (1).

(iii) The HKSAR government may :

provide better health care to the general public to lengthen the life expectancy of Hong Kong people and raise the life expectancy at birth (2)

provide more basic and continuing education to the general public to raise the expected and average years of schooling (1)

increase expenditure on infrastructure to foster economic growth and raise the gross national income per capita (1)

Any ONE above, only the FIRST point will be marked.

Good Y

Good X 0

5

10

15

20

25

5 10 15 20 25

4 PPF1 CPF1

PPF1 : production possibilities frontier before the increase in labour force

CPF1 : consumption possibilities frontier before the increase in labour force

PPF2 : production possibilities frontier after the increase in labour force

CPF2 : consumption possibilities frontier after the increase in labour force

Diagram : (ii) 1 mark for PPF1

1 mark for CPF1

8

PPF2

CPF2




最強文憑試參考天書與模擬試卷，經已隆重推出；英皇教育特價發售!!

最強文憑試教科書經已隆重推出；此套教科書為港九新界多間名校所採用




導師簡介系出名門：他於香港大學經濟及金融學院畢業，而於修讀期間在 Microeconomics、Macroeconomics 及張五常教

授親自任教的 The Economics of Property Rights等學科均考取優異成績，其後亦於香港大學教育學院接受正統師

資培訓，並獲教育局「註册教師」正規專業教學資格

經驗豐富：他曾於港島某 band 1 中學任教會考及高考經濟科，教學經驗超過二十年，因此他對經濟科公開試的評分準則及

取分竅門可謂暸如指掌

IT 教學：他特別擅長應用資訊科技 (IT) (如 Flash、Authorware、Director、PowerPoint、JavaScript、Excel 等軟件及工

具) 於經濟科的互動教學。教育局曾邀請他設計經濟科的 IT教材套，派發予全港中學使用

地位肯定：他曾獲教育局、香港經濟日報、香港電腦教育學會、香港教育圖書公司及其他不同辦學團體的邀請，於香港會議

展覽中心、香港中文大學、香港浸會大學、香港生產力促進局、香港教師中心及港、九、新界各區中學，出任多個經濟科研

討會及工作坊的講者。他亦曾往台灣及內地作學術交流，公開教導中、港、台經濟科教師如何有效將 IT溶入教學

業界推崇：他連續 10 年(03 – 12)獲邀為「香港經濟日報-校園經濟」撰寫會考卷一及高考卷一及卷二乙、丙部建議答案，

及 12 年首屆文憑試經濟科建議答案，行內領導地位毋容罝疑

貼題準確：他於 05 – 08 年為「香港經濟日報 – 校園經濟」、07 – 09年為「明報」獨家撰寫的會考試題，準確貼中大量題

目，12 年 3 月的首屆文憑試中六 Capture A課程亦貼中大量題目，使眾多報讀他補習班的同學奪取佳績

334 學制權威：他與香港教育圖書公司合作，為其暢銷的新高中經濟科教科書 ”New Horizon Economics”「新視野經

濟學」作編審、程式顧問及撰寫持續評估試卷套及模擬試卷，並獲邀主持及主講多個為新學制而舉辦的經濟科研討會，協助

現職經濟科教師以適應新高中學制下經濟科文憑試的挑戰

天書作者：由他編寫萬眾囑目、熱切期待，針對新高中文憑試經濟科的參考書及教材套 - ”Economics – Key Notes and

Exambuilder”「經濟 – 強化筆記及應試練習」與終極天書”Getting 5** in 9 weeks – Economics”｢9星期奪 5**袐笈 –

經濟｣經己出版，鞏固並延續其參考書領導地位

培訓專家：培正教育中心曾邀請他負責「中學教師資訊科技教育複修課程——經濟科」的統籌工作及擔任主講導師，指導

教師有效地應用 IT以教授經濟科，全港眾多中學經濟科教師均曾為郭 sir 的學生，當中包括眾多經濟科教科書、參考書的作

者，以及其他補習社的經濟科導師，可見郭 sir 乃“ trainer of the trainer ”，其專業地位不容罝疑

帶領改革：他於 01 年的資訊科技教育節中，負責經濟科的統籌及擔任主講嘉賓，向全港經濟科教師講解如何有效使用 IT

於教與學之上

講座達人：他在 08 及 10年於香港會議展覽中心舉辦的香港書展中作大型講座的講者，亦於 09 年應香港青年協會-會考寬

頻及香港教育圖書公司邀請，擔任於香港理工大學香港專上學院舉行的「中五會考應試策略講座」經濟科唯一的講者，使數

百名出席的考生獲益良多；於 11 年 3 月，他更被香港青年協會 – U21 Live 邀請，出席｢如何在 334 經濟科取得佳績｣綱上

直播講座的嘉賓，向同學以即時互動形式講解奪取優良成績的秘訣，增強首屆文憑試考生的信心與把握； 11 年 11 月亦應

香港教育圖書公司邀請，於大型講座裏向首屆文憑試考生講解試卷特點及奪分關鍵，使眾多同學得益

創新媒體：他於 09 年為 Now TV 獨家撰寫經濟科模擬試卷(卷一)，於 10年為英皇教育撰寫經濟科模擬試卷(卷二)，並以視

像方式講解參考答案與答題技巧，使同學可於家中以自選及互動形式學習，令應試表現更上一層樓

營商經驗：他曾是本港某大連鎖式電腦銷售店合夥人，把書中所學實踐於真實營商環境中，亦把營商經驗溶入課堂中，實能

大大提升學生於處理應用題目時的信心與表現

著作暢銷：他的著作極受學生歡迎，於 03 – 12 年香港書展中，由香港教育圖書公司出版的必讀參考書剛推出便迅即售罄，

亦為多間中、英文中學經濟科的指定參考天書；可見其市場地位

學生擁戴：多年來經他教導奪 A 的學生，都認為他的教導深入淺出、課堂互動、能一針見血地將重點有效表達出來，教授

的題目分析及答題技巧更可使他們避免犯錯，使他們可以最少的付出得到最大的收穫，於公開考試中表現勝人一籌

老師推介：他創作的題目極受日校老師歡迎，多年來參考他的題目作校內測驗及考試之用的經濟科教師多不勝數，因此郭

sir 的實力可見一斑

持續創新：他曾為「蘋果日報——進取領域」撰寫有關經濟科教學的文章，而現時「香港經濟日報 - 校園經濟」逢星期一

亦會連載由他撰寫的 “文憑試練習室” 專欄

個人網站 http://www.raymondkwok.net email / Facebook : [email protected]


2013 hkdse economics paper 1 & 2 suggested answers … 2013 hkdse economics paper 1 & 2...

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