IIAIIIJll ,1111 - DSEPP · 2018-10-22 · 13. To cope with the problem of a rapidly aging...

2017-DSE ECON

HONG KONG EXAMINATIONS AND ASSESSMENT AUTHORITY

HONG KONG DIPLOMA OF SECONDARY EDUCATION EXAMINATION 2017

ECONOMICS PAPER 2

Question-Answer Book

10.15 am-12.30 pm (2 hours 15 minutes) This paper must be answered in English

INSTRUCTIONS

(1) After the announcement of the start of the examination, youshould first write your Candidate Number in the spaceprovided on and stick barcode labels in the spacesprovided on Pages 1, 3, 5, 7, 9 and 11.

(2) This paper consists of three sections, A, B and C. AnswerALL questions in sections A and B. Attempt any ONEquestion in section C.

(3) Write your answers in the spaces provided in thisQuestion-Answer Book. Do not write in the margins.Answers written in the margins will not be marked.

(4) Supplementary answer sheets will be supplied onrequest. Write your candidate number, mark thequestion number box and stick a barcode label on eachsheet, and fasten them with string INSIDE this book.

(5) No extra time will be given to candidates for sticking onthe barcode labels or filling in the question number boxesafter the'Time is up'announcement.

2017-DSE-ECON 2-1 18

Please stick the barcode label here.

!candidate Number!

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Section A (50 marks)

l Serine is working in the Hong Kong branch of a multinational firm. She is considering the next step in her

career. She has several options and her order of preference is as follows:

First option: Second option: Third option:

to work in a frrm located in South Korea to switch to a local frrm without overtime work to stay in the current firm

Explain whether the opportunity cost of switching to the local firm without overtime work will necessarily

remain unchanged

(a)

(b)

if the military threat from North Korea to South Korea becomes more intense.

if she wants to enjoy more leisure time.

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(2 marks)

(3 marks)

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customers.

(a) Compared to time rate, explain why the above arrangement is preferred from the viewpoint of

(i)

(ii)

the employees.

the employer. (4 marks)

(b) Due to the opening of several new branches, the average cost of production of the restaurant hasincreased. Explain with TWO reasons why this happens. (4 marks)

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Answers written in the margins will not be marked.

2017-DSE-ECON 2-2 19 更多試卷歡迎瀏覽 http://dsepp.com

更多試卷歡迎瀏覽 http://dsepp.com

Please stick the barcode label here.

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5. Due to political instability, the currency of a country depreciates sharply and becomes highly volatile.Which TWO functions of money may be weakened? Explain. (4 marks)

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13. To cope with the problem of a rapidly aging population in Hong Kong, the government has proposed aretirement protection scheme under which eligible elderly would receive $38 760 per year.

(a) Mr. Chan, a street sleeper, is eligible to receive $38 760 under this scheme. He would be able toafford the service of an elderly care centre and would spend $30 000 of the money to pay the yearlycharges.

(i)

(ii)

To which type of production does elderly care service belong?

If Mr. Chan moved to an elderly care centre, explain how the GDP of Hong Kong would be affected. (2 marks)

(b) To finance the scheme, there are different proposals which include:

Proposal A:

Proposal B:

increase the standard tax rate and the progressivity of salaries tax

use the fiscal reserves in the government

Discuss the effects of these two proposals on economic variables which include

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(i)

(ii)

(iii)

aggregate output,

income distribution, and

ONE other economic variable.

(I mark)

(10 marks)

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IIAIIIJll ,1111 - DSEPP · 2018-10-22 · 13. To cope with the problem of a rapidly aging...

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