1. The following are contracts for two professional football players.

a. Explain TWO advantages of Contract B over Contract A from the viewpoint of the employer. (4 marks)

b. 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)

2.

2. The graph shows Hong Kong’s population projection.

(d) In view of the lowering birth rate, it is suggested to extend the statutory maternity leave to 14 weeks for all
female employees and increase the statutory paternity leave from three days to five days for male employees
in the 2018 Policy Address. Suggest one argument against it in terms of short-term effects on Hong Kong’s
labour supply and one argument for it in terms of long-term effects on labour supply.

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