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Econ SampleQuestionRevised E
Econ SampleQuestionRevised E
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:
only required to attempt the questions from one of the (16 marks)
two elective parts.
(120 marks)
Updated in June 2017
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.
hours hours
hours hour
Reference: https://hkcccpptimecoupon.wordpress.com/%E6%99%82%E5%88%86%E5%8A%B5/
http://hk.apple.nextmedia.com/supplement/special/art/20150801/19238648
Updated in June 2017
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 @ 1M
Max 2
Updated in June 2017
‐ 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)
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.
Updated in June 2017
the change of behavior of the consumers and producers. “Price” in the time currency only
reflects time spent on the production. (4M)
Updated in June 2017
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)