HKEAA



Hong Kong Diploma of Secondary Education Examination

Economics

Sample Question of Data Response Questions

In 2019 HKDSE Examination, a data response question (DRQ) will be introduced in Paper 2, Section B. The following sample question was drafted on September 2016 and revised in 2017. It serves as reference for teachers and students in preparation for the 2019 Exam. The marks of the DRQ may vary across years but the total number of marks in each section in Paper 2 is fixed.

The following table outlines the various components of the public assessment of Economics in 2019 HKDSE:

|Component |Weighting |Duration |

|Paper 1 |Multiple-choice questions will be set on the compulsory part of the |30% |1 hour |

| |curriculum. All questions are compulsory. |(45 marks) | |

|Paper 2 |Section A: Short questions will be set on the compulsory part of the |26% |2 hours 30 |

| |curriculum. All questions are compulsory. |(44 marks) |minutes |

| |Section B: Structured/essay-type /data response questions will be |35% | |

| |set on the compulsory part of the curriculum. All questions are |(60 marks) | |

| |compulsory. | | |

| |Section C: Structured/essay-type questions will be set on the |9% | |

| |elective parts of the curriculum. Candidates are only required to |(16 marks) | |

| |attempt the questions from one of the two elective parts. | | |

| |Total for paper 2 |70% | |

| | |(120 marks) | |

Sample question for data-response question (effective from 2019 HKDSE onward)

Recommended time: 35 minutes

A group of Secondary Six students is doing a research about “time currency.” They found that there is money denominated in terms of “time” in Hong Kong issued by a non-government organization in Wan Chai. “Time currency” may help the poor improve their living standard.

Source A: The sample of time currency circulated in Wan Chai community

[pic]

Source B: Time currency scheme in Wan Chai

To get time currency, you should register as a member of the time currency scheme and:

1. provide service to other members (or to the scheme) to earn time currency. Service includes: after-school care, private tuition, cleaning, catering, repairing, Chinese medical service etc; or

2. sell new/ second hand products in the flea market/ second hand market organized by the scheme.

To spend time currency, you can:

1. pay for the service provided by other members; or

2. pay for new/second hand products in the flea market/second hand market.

Source C: News report about the scheme

|[pic] |Mr Ma (63 years old): After being sacked by an electronic company, I learned how to do haircut |

| |and join the time currency scheme, responsible for haircut and second-hand furniture matching |

| |hotline. Providing such services is enjoyable, with satisfaction and friendship gained. |

| |Price for some of the goods/services: |

| |- 60 minutes of house cleaning service: 1 hour of time currency |

| |- pants: 10-20 minutes of time currency |

| |- CD/DVD: 5-15 minutes of time currency |

Source D: An extract of a research on the time currency scheme

Among 150 members surveyed only one-fifth live in Wan Chai. The active members tend to have low-medium income and qualification, while half of them are middle-aged (40-59 years old). However, members are not fully utilizing the time currency: in the past year most members earned less than 2 hours of time currency and spent less than 1 hour of it.

The major reason of not using the time currency is neither the limited choice of goods and service, nor high price of the goods. Instead, members cited “lack of time” and “inconvenience venue” as the reasons.

Reference:



Questions: (21 marks)

a) Refer to Sources A and B. In what way the time currency helps the barter exchange among the residents? (2 marks)

b) List TWO economic phenomena during economic recession. Refer to Sources C and D, explain why the time currency may become more popular in the time of economic recession.

(4 marks)

For part (c), candidates are required to present their answer in essay form. Criteria for marking will include use of sources and economic theories, relevant content, logical presentation and clarity of expression.

c) One hour of time currency can exchange for one hour of service. With reference to the above sources and your knowledge, compare the time currency system with the existing cash system in different aspects such as

‐ acceptability,

‐ the signaling function of prices, or

‐ other aspects.

Based on your comparison, give some suggestions to increase the popularity of time currency system. (12 marks)

d) If the time currency becomes more popular in an economy, would the GDP underestimate the actual output of the economy? Explain your answers. (3 marks)

Suggested answers:

a) Function of time currency in barter:

‐ It helps solve the problem of double coincidence of wants. (2M)

OR

‐ It helps store the value as the time currency can be used later. (2M)

b) Economic phenomena:

‐ low/negative real GDP growth

‐ low inflation/ deflation

‐ low levels of investment and consumption or low/ negative growth rate of investment and consumption

‐ high/rising unemployment

Reasons:

‐ Time cost in recession is lower and people are more willing to spend their time to small scale production/production that does not generate income in monetary term. (2M)

‐ There are more unsold stocks/idle capacities that can be used in the exchange of time currency. (2M)

‐ Using time currency can increase the demand for goods and services as consumers can pay in terms of time - no need to use their income during recession. (2M)

c) Marks award for effective communication (EC: max 2 marks)

|Marks |Performance |

|2 |Supports arguments with the source/data and appropriate economic theories. |

| |Presents relevant material. |

| |Presents well-organised and coherent answers without repetition of ideas. |

| |Uses language that expresses ideas clearly and fluently with appropriate use of words/terms/symbols. |

|1 |Presents arguments with some support of the source/data and economic theories. |

| |Present some irrelevant material. |

| |Presents answers in a less organised way with some repetition. |

| |Uses language that conveys a clear message with some inappropriate use of words/terms/symbols |

|0 |Presents arguments with no support of the source/data and economic theories. |

| |Present material unrelated to the gist of the question. |

| |Presents inconsistent arguments. |

| |Express limited ideas with inappropriate use of words/terms/symbols |

The maximum marks for content is 10 marks. Answers may include the following:

Acceptability:

HK dollars are legal tender/generally accepted as a medium of exchange while time currency is of limited acceptance. (2M)

Signaling function:

The change in price in terms of money reflects the change in demand and supply of the good i.e. the change of behavior of the consumers and producers. “Price” in the time currency only reflects time spent on the production. (4M)

Other aspects for comparison:

• Using time currency can only access limited range of goods and services (mainly locally produced goods) while using money can buy all kinds of goods and services without limitation of places. This may benefit the local small firms. (4M)

• There may be no/very limited lending and borrowing of time currency which restrain the transaction using time currency while people can borrow cash from bank for transaction or investment and save money to bank for earning interest. (4M)

• Under time currency the prices of goods and services tend to be more stable as it is related to the time spent during production, while price level in terms of money is subjected to higher fluctuation e.g. monetary policies will affect price level. (4M).

• Time currency can help lower income group to access more goods/services in the time of recession while in monetary system they may be unemployed and/or earning low wage so that many goods/services are beyond their affordability. (4M)

• Price is in terms of Hong Kong dollar in the monetary system while time currency is in terms of time. (2M)

• Time currency is less divisible than cash. (2M)

• Time currency may be more easily counterfeit than banknotes. (2M)

Suggestions for increasing the popularity:

I. Increasing the benefit of using the time currency:

• Expand the scheme to more shops/ large chains/public services to raise the acceptability of the time currency. (2M)

• Set up a time currency bank that can have borrowing/lending of, paid interest to the deposit of , and monitor the quantity of time currency. (2M)

II. Reducing the cost of using the time currency:

• Allow mixed use of time currency and cash during purchase /set an exchange rate so that people can convert cash to time currency to join the time currency scheme in a more convenient way. (2M)

• Develop an app/website for matching the good/services provided by time currency users to reduce the time spent on searching the shops in the time currency scheme. (2M)

Students are expected to make suggestions supported by their arguments made in their discussion.

(Note: Students may use some answers from other parts of the question as long as their arguments are organized and logically consistent with their stand.)

d) Yes. GDP tends to underestimate the actual output as some outputs (e.g. services) are not bought and sold in the market using money. Instead some outputs are obtained using time currency which is not calculated in the GDP. (3 marks)

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hours

hours

hours

hour

@ 1M

Max 2

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