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Public Assessment
HKDSE Econ 2015 live paper
Oct/Nov 2015
Live papers Paper 1:
On compulsory part of the curriculum
Answer all questions
45 multiple choice questions
Account for 30% of the subject marks
(without SBA)
60 minutes
Live papers
Paper 2 section A:
On compulsory part of the curriculum
Short questions
All questions are compulsory
8 short questions
50 marks
Account for 30% of the subject marks (without SBA)
Live papers
Paper 2 section B:
On compulsory part of the curriculum
Structured/essay-type questions
All questions are compulsory
4 structured questions
54 marks
Account for 31% of the subject marks (without SBA)
Live papers Paper 2 section C:
On elective part of the curriculum
Structured/essay-type questions
Attempt questions on ONE elective only
2 structured questions
16 marks each
Account for 9% of the subject marks (without
SBA)
In 2015-2018 Exam: Total time is 2 hours 15 mins
Paper 1 Number of sat: 17772
Overall mean score of 2015:
28 out of 45 question
= 62.2%
Overall mean score of 2014 = 63.7%
Paper 1 Q5 The schedule below shows the marginal cost of a firm in a perfectly
competitive market.
Output (units) 3 4 5 6 7 8 9
Marginal cost ($) 5 5.5 6 6.5 7 8 9.5
Suppose the rental of the machine hired, a fixed cost, increases by
$2 while the marginal cost for each unit of the output is reduced by
$0.5. As a result, the profit-maximising output of the firm
_____________ while the profit of the firm __________.
A. increases … decreases (12%)
B. increases … may increase or decrease (41%)
C. decreases … decreases (19%)
D. decreases … may increase or decrease (28%)
Paper 1 Q10 Which of the following will result in a rise in the total revenue of
chicken farms?
A. The price of chicken feed falls. (12%)
B. The government reduces the profits tax rate on
chicken farms.
(32%)
C. The effective quota on the sale of chickens is
increased.
(24%)
D. The government reduces the subsidy for the
producers of pork.
(32%)
Paper 1 Q17 Which of the following is an example of the divergence
between private and social benefits?
A. A security guard watches live concerts when he is
working in a concert hall.
(14%)
B. A tourist enjoys the music performed by a singer
on the street and he does not pay for that.
(45%)
C. A resident living next to a karaoke lounge cannot
fall asleep because of the noise.
(25%)
D. After the removal of the airport, the market value
of the residential flats in that region increases.
(16%)
Paper 1 Q34 Which of the following are indirect taxes in Hong Kong?
(1) property tax
(2) rates on property
(3) stamp duty on transfer of stock
(4) general sales tax
A. (1) and (2) only (5%)
B.* (2) and (3) only (20%)
C. (1), (3) and (4) only (19%)
D. (2), (3) and (4) only (56%)
Paper 1 Q44 The following table shows some information about the balance of
payments of Country A. Items $ million
Balance on goods -1 200 Balance on services 700 Net factor income from abroad 200 Net current transfer -100 Increase in reserve assets 180
According to the above data, which of the following statements are correct? (1) The current account deficit is $400 million. (2) Country A’s GDP is smaller than its gross national product. (3) The balance of payments surplus is $180 million. A. (1) and (2) only (38%) B. (1) and (3) only (25%) C. (2) and (3) only (18%) D. (1), (2) and (3) (19%)
Paper 1 Comments Time: 45 MCQs in 60 mins
Sufficient time (No. of MCQ up?)
Candidates are weaker in
- Data interpretation
- Application formula for calculation
- Integration of topics
- Macroeconomics
- social/economic issues
Paper 2 Number of sat: 17,748
Overall mean score in 2015:
53.4%
Overall mean score in 2014:
57.2%
Overall mean score in 2013:
50.0%
Paper 2 Marking
Onscreen Marking System (OSM)
Scanned images
Markers mark in Assessment Centres
Section A1, A2, B1, B2, C
Each Marker marking 16-27 marks
800 to 1000 scripts
Increase reliability
Assessment Centres Fortress Hill Assessment Centre Lai King Assessment Centre Tsuen Wan Assessment Centre San Po Kong Assessment Centre Tai Hing Assessment Centre Fanling Assessment Centre- (Fanling Rhenish Church Sec Sch) Shatin Wai Assessment Centre- (Hong Kong Education City) Sai Ying Pun Assessment Centre- (King’s College) Tseung Kwan O Assessment Centre- (YCH Wong Wah San Sec Sch) Tseung Kwan O Assessment Centre- (CMA Sun Kei Sec Sch) Che Kung Temple Assessment Centre Shek Kip Mei Assessment Centre
Paper 2 Welcome the Assistant Examiners to
comment on the candidates performance
by Section:
Section A1: (Q1, 3, 5, 6)
Section A2: (Q2, 4, 7, 8)
Section B1: (Q9, 11)
Section B2: (Q10, 12)
Section C: (Q13, 14)
Paper 2 Section A1 (Q1, 3, 5, 6) Q1 More and more famous universities offer “massive open online courses” (MOOC) to students from various backgrounds for systematic learning.
(a) Most of the teaching materials in MOOC can be accessed online by anyone free of charge. Explain whether these materials are
(i) free goods; (2 marks)
(ii) public goods. (3 marks)
(b) Some people prefer to take free MOOC while others prefer to take paid courses conducted on the university campus. If the courses are with the same contents and number of teaching hours, will the cost for a person to take a free MOOC be necessarily lower than the cost for another person to take a paid on-campus course? Explain. (3 marks)
Paper 2 Section A1 (Q1, 3, 5, 6) Q3
An increase in an effective quota in the market of a good
would lead to a reduction in deadweight loss. Do you agree?
Explain your answer with the aid of a diagram. (6 marks)
Q5
Macau has developed rapidly in recent years and some
workers in Hong Kong have been attracted to work there.
Suppose the number of job positions in Hong Kong is
constant. What would be the effect of the above phenomenon
on the unemployment rate in Hong Kong? Explain your
answer. (4 marks)
Paper 2 Section A1 (Q1, 3, 5, 6) Q6 Study the following balance sheet of the banking system in Country A.
Suppose all banks are fully loaned up and never hold excess reserves. The public always holds $150 million in cash.
Assets ($million) Liabilities ($million)
Reserves 1 000 Deposits 5 000
Loans 4 000
(a) Calculate the following items of this banking system:
(i) legal reserve ratio (1 mark)
(ii) money supply (2 marks)
A firm in Country A has received $50 million from abroad and deposited the sum of money into a bank.
(b) Calculate the new monetary base in Country A. Show your workings.(2 marks)
(c) Calculate the new money supply in Country A. Show your workings. (3 marks)
Paper 2 Section A1 Report 1(a)(i) Excellent. Most candidates showed a good understanding of
free good. 1(a)(ii) Satisfactory. Many candidates failed to realise that free
online access of MOOC implies that nobody is excluded from the consumption of such courses. Some candidates only stated the term “non-rival,” but missed the key idea of “non-rivalry or concurrent usage” in consumption.
1(b) Satisfactory. The majority of candidates were able to point out that the full cost (including both monetary and non-monetary cost) should be considered. Some of them were unable to give a proper comparison between the non-monetary cost borne by a person taking MOOC and the full cost borne by a person taking a paid on-campus course. A few candidates confused the concepts of value and cost: they wrongly regarded the lack of opportunity to interact with lecturers and classmates as part of the non-monetary cost of MOOC.
Paper 2 Section A1 Report 3 Satisfactory. Many candidates were able to illustrate
diagrammatically and explain verbally the reduction in
deadweight loss when an effective quota is increased.
However, some were unable to provide a proper explanation
for the reduction in deadweight loss (i.e., narrowing the gap
between marginal benefit and marginal cost, or reducing the
level of under-production). A minority of candidates
represented the change in quota mistakenly as a leftward
shift in the supply curve and gave a wrong discussion
accordingly.
Paper 2 Section A1 Report 5 Fair. Contrary to what is stated in the question, some
candidates assumed partial or no job replacement in the Hong Kong labour market as some workers moved to Macau. However, those who managed to provide logically consistent explanations were still given full credit. The following were common mistakes: – failure to realise that the unemployment rate is defined in
percentage terms; – mistaking the constant number of job positions for
constant number of unemployed persons; – skipping the comparison between the percentage
decrease in the unemployed population and that in the labour force.
Paper 2 Section A1 Report 6(a)(i) Excellent.
6(a)(ii) Good. Most candidates were able to add the cash in
public circulation to the deposit to calculate the money
supply.
6(b) Satisfactory. The most common mistake was to use
the formula for money supply to calculate the monetary
base.
6(c) Satisfactory. Some candidates did not sum the cash in
public circulation and the new amount of deposits to get
the new money supply.
Paper 2 Section A2 (Q2, 4, 7, 8) Q2 Many electronic product retailers are located in Mong Kok.
(a) To which type of production do electronic product retailers belong? Explain your answer. (2 marks)
(b) Suggest TWO reasons why an electronic product retailer in Mong Kok may enjoy external economies of scale. (4 marks)
Q4 Read the following news extract.
The strong preference for small flats has pushed the prices of the flats under 400 square feet to a new high in the past few months. It is expected that more and more small flats will be available for sale in the coming future.
(a) Explain ONE function of price which can be found in the above news extract. (2 marks)
(b) Explain how the supply of large flats would be affected by the strong preference for small flats. (2 marks)
Paper 2 Section A2 (Q2, 4, 7, 8) Q7
Suppose both Country A and Country B use ALL their resources in
production. Their maximum output is shown in the table below.
Rice (units) Clothing (units)
Country A 15 OR 3
Country B 8 OR 4
(a) Explain whether Country B has an absolute advantage in
producing clothing. (2 marks)
(b) The rice-exporting country exports 12 units of rice in exchange
for 3 units of clothing. Calculate the total gain from trade for the
clothing-exporting country. Show your workings. (4 marks)
Paper 2 Section A2 (Q2, 4, 7, 8) Q8 The government is considering spending a certain sum of its budget surplus on the following two proposals:
Proposal 1: To extend the free education to 15 years Proposal 2: To provide unemployment benefits
Evaluate the two proposals in terms of equality and the effect on aggregate output. (8 marks)
Paper 2 Section A2 (Report) 2(a) Good. A minority of candidates wrongly interpreted the
types of production as “types of factors of production” or “types of market structure,” and therefore gave irrelevant answers.
2(b) Fair. While most candidates were able to state the benefits of locating retail stores in Mong Kok, many failed to provide the external factors that lead to a reduction in average cost or to explain how agglomeration helps reduce costs for firms. Instead, they gave reasons related to internal economies of scale.
4(a) Poor. Some candidates confused the functions of price with those of money.
4(b) Good. A few candidates confused competitive supply with competitive demand (substitutes).
Paper 2 Section A2 (Report) 7(a) Good. A minority of candidates misinterpreted the word “ALL”
as both countries having the same amount of resources, and thus gave an incorrect comparison.
7(b)
Satisfactory. Most candidates were able to use the information in the table to calculate the opportunity costs for both countries and to find the gains from trade. However, some candidates only calculated the per unit gain instead of the total gain. A very small number of candidates used their knowledge learned in elective 2 to answer the question. It should be noted that, instead of writing their answers (e.g., the opportunity costs of the two countries) properly in the designated space, some candidates simply scribbled them immediately next to the table in the question without explanations, making it difficult for markers to give any credit to such rough work.
Paper 2 Section A2 (Report) 8 Satisfactory. The majority of candidates managed to provide
an evaluation of the policy proposals in terms of equality and aggregate output. Some common mistakes: – failure to analyse “equality” effects of the policies on
“equality” in the sense of equalising opportunities and equalising incomes;
– providing a discussion of the pros and cons of the two proposals without using the given criteria (i.e., equality and output);
– stating the policy effects on such macroeconomic variables as consumption, investment, and government expenditure without relating them to the change in AD / SRAS / LRAS;
– inaccurate use of terms like “real” output, “aggregate” output, and “potential” output.
Paper 2 Section B1 (Q9,11) Q9. McDonald’s is one of the major fast food chains in Hong Kong.
(a) McDonald’s is a private limited company in Hong Kong. State ONE advantage and ONE disadvantage of forming a private limited company over forming a public limited company. (2 marks) (b) McDonald’s has expanded its business by operating McCafé, which sells premium coffee like other coffeehouses such as Starbucks. To which type of expansion does this belong? Explain. (2 marks) (c) The price of a cup of Espresso in McCafé is lower than that in Starbucks. Suggest TWO possible reasons to explain why there is such a price difference. (4 marks) (d) In July 2014, McDonald’s was accused of using expired meat as an ingredient for its food. Later, the related products were destroyed. Explain whether the value of these destroyed products would be included in the calculation of Hong Kong’s gross domestic product. (2 marks)
Paper 2 Section B1 (Q9,11) Q11 Figure 1 shows the percentage changes in direct tax revenue
and nominal GDP in Hong Kong for the years 2009-2013.
Paper 2 Section B1 (Q9,11) Q11 (a)(i)With reference to Figure 1, describe the relationship
between the percentage change in direct tax revenue and the
percentage change in nominal GDP for the years 2009-2013 and
compare their trends. (2 marks) (a)(ii)Briefly explain the relationship you described in (a)(i). (2 marks) (b) An accountant commented that the tax base of Hong Kong is
narrow and suggested the government should introduce new types
of indirect tax. Explain, with ONE example, how the introduction of a
new indirect tax would broaden the tax base. (2 marks)
Paper 2 Section B1 (Q9,11) Tobacco duty is an indirect tax in Hong Kong. The Financial
Secretary has increased the tobacco duty rate with the aim of
discouraging smoking. Q11(c) An economist stated, “Other things being constant, the rise
in the tobacco duty rate would not effectively reduce the quantity
consumed of duty-paid cigarettes.” Justify his statement
WITHOUT using a diagram. (4 marks) (d) In addition to the rise in tobacco duty, the Customs has made
more effort to prevent the illegal sale of duty-not-paid cigarettes
and has cracked down several illegal sellers. Is it possible that the
quantity transacted of duty-not-paid cigarettes would increase?
With the aid of a diagram, explain your answer. (7 marks)
Paper 2 Section B1 (Report)
9(a) Excellent.
9(b) Good. Most candidates were able to identify the type of
expansion and give a correct explanation.
9(c) Good. Many candidates gave well-reasoned explanations
for the lower price charged by McCafe. A minority
overlooked keywords in the question and only offered
such reasons for the price difference as costs and/or
qualities without actually comparing the cost/quality
difference between Starbucks and McCafe.
Paper 2 Section B1 (Report)
9(d) Poor. Many candidates were under the misconception
that the destroyed meat should be counted in GDP
because it was bought by McDonald’s and should thus be
included in its investment, or that it involves production and
should thus be counted even if it is destroyed eventually.
Those who were able to get their stands correct failed,
however, to provide satisfactory explanations. Some
regarded the expired meat as stock or non-final goods.
Others stated that the values of these destroyed products
were included in GDP when they were initially produced,
so they should not be counted again or else they would be
being counted twice.
Paper 2 Section B1 (Report) 11(a)(i) Good. Most candidates were able to describe correctly the
relation between the percentage change in direct tax revenue and the percentage change in nominal GDP, though only a small number of candidates compared their changes.
11(a)(ii) Fair. Common mistakes included: - repeating the answers of 11(a)(i) without trying to explain
the reasons behind the trend they had identified; - explaining why nominal GDP increased or decreased in
particular years without explaining how these changes related to direct tax revenue;
- arguing that a rise in direct tax revenue implies a rise in income, which would in turn result in an increase in consumption, investment, and thus GDP.
Paper 2 Section B1 (Report) 11(b)
Satisfactory. A minority of candidates wrongly gave
some existing indirect tax (e.g., general rates and
stamp duties) as their answers. Some failed to apply
the concept of tax base to offer a proper explanation.
Instead, they limited themselves to discussing the
properties of indirect taxes, which were irrelevant to this
question.
Paper 2 Section B1 (Report) 11(c) Fair. The following mistakes were common:
- neglecting the word “justify” and providing arguments against the statement;
- over-emphasising the opportunity for the smokers to turn to the black market for cigarettes, while ignoring that the question only concerns duty-paid cigarettes;
- mistaking “effectiveness” for “efficiency.”
11(d) Fair. Although most candidates were able to apply the supply- demand model to this somewhat complicated case, some failed to provide a comprehensive analysis. Common mistakes included: – missing the keyword “duty-not-paid” and wrongly focusing the
discussion on duty-paid cigarettes; – overlooking the effect of the rise in tobacco duty on the demand
for duty-not-paid cigarettes; – mis-locating the new equilibrium point despite correct
specification of the shifts in demand and supply curves.
Paper 2 Section B2 (Q10,12) Q10 Suppose a football club in Hong Kong hired a famous
football player from Brazil as the coach for a 2-month course
for kids. He received $8 million as his salary and returned to
Brazil afterwards. However, the enrollment of the course was
poor and the revenue from the course was $3 million only.
(a) What is the effect of organising the above course on each
of the following items? Explain.
(i) Hong Kong’s gross domestic product (GDP) (2 marks)
(ii) Hong Kong’s gross national product (GNP)(3 marks)
Paper 2 Section B2 (Q10,12) Q10(b) The following are contracts for two professional football
players.
Explain TWO advantages of Contract B over Contract A from the viewpoint of the employer. (4 marks) (c) Professional football players often retire in their mid-thirties. Although most of them have once been well-paid as footballers, some of them can only find low-paid jobs after retirement. Explain the above phenomenon in terms of labour mobility. (3 marks)
Contract A Player A: $10 000
per week
Contract B Player B:
$8 000 per match + $10 000 for each
goal scored
Paper 2 Section B2 (Q10,12) Q12
Research shows that the “Individual Visit Scheme” of mainland
tourists has brought economic benefits to Hong Kong. However,
more and more Hong Kong residents have called on the government
to reduce the number of mainland tourists to Hong Kong under the
Scheme.
(a) How would the current account of Hong Kong be affected if the
government limited the scale of the Scheme so that the number of
tourists from the mainland would drop? Explain your answer. (2
marks)
An economist uses the AS-AD model to analyse the current situation
in Hong Kong. In his analysis, point E in Figure 2 represents the
initial short-run equilibrium of the Hong Kong economy.
Paper 2 Section B2 (Q10,12)
Paper 2 Section B2 (Q10,12) Q12 (b) He points out that the government can help the economy restore to its long-run equilibrium. With the aid of Figure 2, explain how the reduction in the number of tourists from the mainland can lower the output level to Yf. (5 marks) (c) He also states that even without the help of the government, market forces can restore the economy to its long-run equilibrium. WITHOUT using a diagram, explain how market forces can lower the output level to Yf in the long run. (4 marks) (d) Some residents complained that the large number of tourists overloaded the public transportation system, resulting in a large increase in travel time for all passengers. Explain, in terms of externality, why inefficiency may exist when the transportation system is overcrowded. (4 marks)
Paper 2 Section B2 (Report) 10(a)(i) Fair. Most candidates were able to point out that GDP
would increase as production activities were involved in this case. However, some missed such keywords as “current” or “resident producing unit” in their answers. A minority of candidates either confused “resident” with “resident producing unit” or thought that both the coach’s salary and the revenue from the course should be counted in GDP.
10(a)(ii) Satisfactory. Many candidates were able to state the relation between GDP and GNP and to identify the coach’s income as factor income from abroad.
10(b) Good. A few candidates did not analyse the problem from the perspective of the employer. Others only gave a term or a short phrase as answer without elaboration or application to the question.
10(c) Good. A minority of candidates failed to indicate which kind of labour mobility (occupational or geographical) they were talking about.
Paper 2 Section B2 (Report)
12(a) Excellent. A minority of candidates mistakenly thought that, with fewer tourists coming to Hong Kong, the export of goods would fall.
12(b) Excellent. Most candidates were able to explain how a decrease in net export would lead to a fall in AD and its resulting output effects. A few candidates mistakenly thought that, as fewer tourists came to Hong Kong, less goods and services would be produced, so SRAS would drop.
12(c) Satisfactory. Some candidates were unable to explain the adjustment in a logical and systematic way without the aid of a diagram.
12(d) Satisfactory. The majority of candidates were able to state the negative external effects that would arise from overloading. However, only a few candidates were able to relate the increased travel time to the time cost and the higher marginal social cost. Many only stated the inefficiency condition as “MB not equal to MC,” without specifying that “MSC > MSB” in this particular case.
Paper 2 Section C (Q13-14) Q13 Super Power is the only licensed power supplier in City X. It adopts uniform pricing to maximise its profit. (a) Indicate the quantity that it would produce as Q1 and the corresponding price as P1 in Figure 3. Briefly explain your answer. (3 marks) (b) Explain, with the aid of Figure 3, why it is inefficient to adopt uniform pricing. (2 marks) (c) The government imposes a lump sum tax, which is a fixed amount regardless of the quantity produced, on Super Power. (i) Explain whether Super Power’s marginal cost will increase because of the lump sum tax. (2 marks) (ii) Indicate the after-tax output and price of Super Power as Q2 and P2 respectively in Figure 3. (2 marks)
Paper 2 Section C (Q13-14)
Paper 2 Section C (Q13-14) Q13(d) Super Power charges the domestic users $1.2 per unit of
power consumed and the industrial users $0.9 per unit of power
consumed. Does this pricing arrangement constitute price
discrimination? Explain. (3 marks)
(e) Super Power has taken over the major coal supplier, which
provides 90% of raw materials for the production of electricity in
City X. Name the anti-competitive behaviour that Super Power
may constitute and explain how such behaviour restrains
competition. (2 marks)
(f) The owners of Super Power claim the takeover in (e) is not
anti-competitive. Justify their claim with ONE reason. (2 marks)
Paper 2 Section C (Q13-14) Q14: (a) Country A requires 1 unit of labour to produce a unit of
Good X and 2.5 units of labour to produce a unit of Good Y.
Suppose labour is the only resource required for production.
Country A is endowed with 10 units of labour and the terms of trade
is 1X = 1Y. (i) Explain which good Country A will import.
(ii) Construct the production possibilities frontier and consumption
possibilities frontier of Country A in Figure 3. (4 marks) Suppose the labour force of Country A increases by 10 units. (iii) Will the direction of trade be affected? Will Country A be better
off as a result? Explain your answers with the aid of Figure 3. (6
marks)
Paper 2 Section C (Q13-14) Q14 In Figure 4, PPF is a country’s production possibility frontier where
E is the production point without trade. At point E, the domestic cost of
production of one unit of good X is 2.5 units of good Y.
Paper 2 Section C (Q13-14) Q14 (a) Explain whether the country would produce at
point N. (2 marks) (b) The slope of dotted line AB is the world price of good
X. Explain whether the country has a comparative
advantage in producing good X. (3 marks) (c) Suppose the country engages in international trade.
Indicate its production point after trade and its
consumption possibility frontier in Figure 4. (3 marks) (d) With the aid of Figure 4, explain whether the country
will gain from trade. (3 marks)
Paper 2 Section C (Q13-14) Q14 (e) After the country’s opening up for trade, its
Human Development Index (HDI) has risen. (i) Give ONE reason why international trade can lead
to a rise in HDI. (1 mark) (ii) Despite the rise in HDI, the residents in the country
generally agree that the living standard has declined.
Suggest TWO possible reasons to explain their view.
(4 marks)
Paper 2 Section C (Report)
13(a) 56% Good. In their discussions, a minority of
candidates mis-specified the “marginal cost =
marginal revenue” condition as “marginal cost
= marginal benefit” for profit maximisation.
13(b) Good. A few candidates were able to state the
inequality between marginal benefit and
marginal cost, but failed to show it in Figure 3.
13(c)
(i)(ii)
Fair. Some candidates did not realise that lump
sum tax is a fixed cost. Others thought that a
rise in fixed cost would result in a rise in
marginal cost.
Paper 2 Section C (Report) 13(d) 56% Good. Most candidates were able to identify it as a
case of price discrimination. However, some of them
failed to give full justification; they either provided a
term (e.g. third degree price discrimination) without
elaboration or tried to analyse the case using an
incomplete definition of price discrimination.
13(e) Fair. Some candidates mistook the takeover for
“exclusive dealing”. A few candidates confused
vertical backward integration with forward
integration.
13(f) Satisfactory. A small number of candidates failed to
state whether their arguments concerning
beneficiaries apply to consumers only or to the
society as a whole.
Paper 2 Section C (Report) 14(a) 44% Good. Most candidates correctly stated that the
country would not produce at point N. However, a
small number did not mention the correct reason.
14(b) Good. Some failed to give exact numbers to
support their answers.
14(c) Satisfactory. Most candidates were able to indicate
the post-trade production point. Many candidates
realised the new CPF should be tangent to the PPF,
but many did not seem to understand that the CPF
should also be parallel to the world price line. Some
candidates presented an answer with complete
specialisation. This is common in a constant-cost
case but rare in an increasing-cost case.
Paper 2 Section C (Report) 14(d) 44% Fair. While many candidates were able to point
out that the country can increase its
consumption of both X and Y, some of them
failed to indicate the possible consumption
point(s) in the diagram.
14(e)
(i)(ii)
Good. A common mistake in part (i) was a
failure to link international trade to the increase
in life expectancy and/or years of schooling,
resulting in the rise in HDI.
Mean for Q13=7.51
Mean for Q14=8.37
Paper 2 General reminder:
Please don’t use colour to indicate the
areas in the diagram
Don’t successively use symbols in the
answer.
Express the answer in a comprehensible
way: rough work write not in the
designated spaces will NOT be marked.
Paper 2 Overall comments Some candidates lack a thorough understanding of basic economic concepts and principles, and thus have difficulty in applying them to solve hypothetical or real-life problems. Candidates should strengthen their analytical skills instead of simply regurgitating concepts and theories. Some candidates do not read all the questions carefully. Candidates should devote special attention to the assumptions and conditions laid down in the questions so as to avoid giving irrelevant answers. Some candidates provided convoluted answers. Candidates should equip themselves with better language abilities as well as graphical skills, and present their answers in a clear and precise way. Some candidates were unaware of current economic issues. Candidates should pay more attention to economic news. Some candidates showed a weakness when extracting information from tables and graphs as well as when drawing well-labelled diagrams. Candidates should pay special attention to the headings, labels, and axes as they are essential to our understanding of the data presented therein.
Grading - paper marks and subject marks
Raw mark of Paper 1 (max mark): 40
Raw mark of Paper 2 (max mark): 124
Adjusted mark: Marks awarded by markers are adjusted, if necessary, to rectify lenient, strict or erratic marking.
Weighted paper mark: Marks of different papers are converted to the same comparable scale, taking into account the spread of marks in different papers and the published paper weightings, before they are combined to form the subject mark.
Grading - Grading procedures
http://www.hkeaa.edu.hk/tc/hkdse/The_Reporting_System/
1. Sample scripts selection
2. Standardisation
3. Post-marking exercise:
The grading panel will discuss and suggest a
provisional grading recommendation (including
preliminary cut score range) on each paper
through expert judgment base on:
Grading – Post-marking exercise
The level descriptors
The standards of 2012 DSE (library scripts)
Marked-live scripts, selected according to the total marks
Feedback from markers on the level of difficulty of papers
Inter-paper correlations, the mean and standard deviation of the current year’s papers
Paper mark cumulative distributions
Performance samples from 2013 and 2014 DSE (library scripts)
Grading – Panel of judges grading meeting
• preliminary cut score range
• Samples scripts around the cut score range
• Group ability index:
- constructed per level
- An index for each level based on the number of
candidates in this group (this subject) achieving
that particular level in the four core subjects
- depends on the correlation of the subject and
EACH of the 4 core subjects
Grading – Panel of judges grading meeting
Panel of judges considers:
• preliminary cut score range
• Samples scripts around the cut score range
• Group ability index (GAI) as reference Recommendation for the cut score for the subject • The panel of judges plays a very important and
independent role in setting a cut score for each
level based on the actual performance of
candidates
Grading – Internal meeting and
Public Examinations Board meeting
• Internal meeting: A senior management team
led by Secretary General of the Authority will
meet to review the recommendations of
individual subject panels. • PEB meeting: The recommendations of the
internal meeting will be reviewed at the PEB
meeting and the final cut scores of all HKDSE
subjects must be endorsed at this meeting.
Grading – Determination of
level 5** and 5*
• Statistically determined
• The highest 10% (approximately) of level 5
candidates will be awarded 5**
• The next highest-achieving 30%
(approximately) of level 5 candidates will be
awarded 5*
Grading: Standard Maintenance
• Standard of the level 1,2,3,4,5 should be
maintained across years
• the cutting scores NOT constant:
the cutting scores depends on level of difficulty
of the papers and the actual performance of the
candidates
• It is possible that a level 2 candidate perform
better in one particular question than a level 5
candidate:
the level represents the overall performance