Public Assessment
HKDSE Econ 2022 live paper
Sep / Oct 2022
2
Live papers
Paper 1:
 On compulsory part of the curriculum
 Answer all questions
 45 multiple choice questions
 Account for 30% of the subject marks
 60 minutes
2022: unchanged

3
Live papers
Paper 2 section A:
 On compulsory part of the curriculum
 Short questions
 All questions are compulsory
 9 short questions
 44 marks
 Account for 30% of the subject marks

⚫
(due to special arrangement under
pandemic)
4
Live papers
Paper 2 section B:
 On compulsory part of the curriculum
 Structured/essay-type/ questions
 All questions are compulsory
 3 structured questions (with 1 DRQ)
 60 marks
 Account for 40% of the subject marks

⚫
(due to special arrangement under
pandemic)
5
Live papers


Paper 2 section C: cancelled
Total time is 2 hours 30 mins
⚫ 2023:
section C also cancelled
6
Summary of 2023 paper


Paper 1 unchanged:
45 MCQs, 60 mins
Account for 30% of subject mark
Paper 2 exam time unchanged:
2 hour 30 mins
Paper 2 mark allocation
Section A: 44 marks (30% of subject mark)
Section B: 60 marks (40% of subject mark)
Section C: cancelled
Total marks of paper 2: 104 marks
7
Paper 1
Number sat: 11161
 Overall mean score of 2022
= 64.1% (28.2)
 Overall mean score of 2021
= 57.2% (25.7)
 Overall mean score of 2020
= 61.07% (27.52)

8
Paper 1 Q2
Sony launched the ‘PlayStation 5’ game console. As it was popular
among game players, long queues were found outside the shops
after the official release.
Which of the following would increase the opportunity cost of buying
a ‘PlayStation 5’ console?
A.
The resale value of ‘PlayStation 5’ increased due to its shortage.
B.
Retailers provided online purchase service to eliminate the queues
outside the shops.
With the same price, its competitor launched a new game console
featuring better performance than ‘PlayStation 5’.
The government issued electronic consumption coupons, which can
be used to purchase game consoles.
C.
D.
9
Paper 1 Q2
Different candidates chose to focus on different dimensions of
opportunity cost—i.e, the highest-value option forgone (better game
console being sold at the same price as PlayStation 5) or time cost
(queuing due to shortage).
The former picked Option C as the key. The latter picked either
Option A (lengthening of queues) or Option D (assuming PlayStation
5 is a normal good).
10
Paper 1 Q3
Tommy is planning for his future after his S.6 graduation. He has
several options and his order of preference is as follows.
First option:
Being a barista in a café
Second option: Being a trainee in digital marketing
Third option:
Being a junior fireman
Which of the following factors would LEAST likely affect the costbenefit analysis for Tommy’s career choice?
A.
B.
Coffee culture becomes more popular.
More companies expand their digital marketing departments.
(41%)
C.
The remuneration of junior firemen worsens.
(37%)
D.
Safety measures of fire-fighting are improved drastically.
(17%)
(5%)
11
Paper 1 Q33
The diagram below shows the money demand and money supply
curves of an economy. The original equilibrium point is at E.
Suppose most of the employers in
the economy change the payment
of salaries from monthly to biweekly. At the same time, the
commercial banks tend to hold
more excess reserves. The new
equilibrium point will be at ______.
A.
A
(31%)
B.
B
(41%)
C.
C
(18%)
D.
D
(10%)
12
Paper 1 Q34
The following table shows the monetary base and money supply of a
country.
Date
Monetary base ($ billion) Money supply ($ billion)
1 January 2020
150
500
1 January 2021
150
800
Which of the following could explain the above data?
(1)
The central bank bought bonds from the public in 2020.
(2)
The central bank increased the discount rate in 2020.
(3)
The central bank lowered the required reserve ratio in 2020.
A.
B.
C.
D.
(3) only
(1) and (2) only
(1) and (3) only
(2) and (3) only
(41%)
(11%)
(38%)
(10%)
13
Paper 1 Q44
The diagram below is about a small open economy imposing an
import quota on Good X.
Price
S0
S1
P world price
quota
D
0
Quantity
If the world price of Good X drops,
A.
B.
C.
D.
the quota will become ineffective.
the quantity of Good X produced domestically will decrease.
the quantity of Good X consumed domestically will increase.
the domestic price of Good X will remain unchanged.
(13%)
(34%)
(22%)
(31%)
14
Paper 1 Comments
Time: 45 MCQs in 60 mins
➔ Sufficient time
Candidates are weaker in
- Data interpretation
- Application of formula for calculation
- Integration of topics
- Macroeconomics
- Social/economic issues
- Number sense

15
Paper 2
Number sat : 11151
Overall mean score in 2022:
62.7 %
 Overall mean score in 2021:
60.1 %
 Overall mean score in 2020:
59.56%

16
Paper 2 Marking
Onscreen Marking System (OSM)
 Scanned images
 Markers mark in Assessment Centres
 Section A1, A2, B1, B2, B3
 Each marker marking 15-30 marks
➔ 300 to 600 scripts
 Increase reliability

⚫
Special thanks to markers of B3 this year!
17
Paper 2
Welcome the Assistant Examiners to
comment on candidates’ performance by
Section:
 Section A1: Q1, 2, 3, 6, 8
 Section A2: Q4, 5, 7
 Section B1: Q9
 Section B2: Q10
 Section B3: Q11

18
Paper 2 Section A1 (Q1, 2, 3, 6, 8)
19
Paper 2 Section A1 (Q1, 2, 3, 6, 8)
20
Paper 2 Section A1 (Q1, 2, 3, 6, 8)
21
Paper 2 Section A1 (Q1, 2, 3, 6, 8)
22
Paper 2 Section A1 (Q1, 2, 3, 6, 8)
23
Paper 2-A1 comments
Q1a) Good.
Q1b) Satisfactory- Some only mentioned some factors
underlying a rise in production cost, rather than average
cost.
Q2) Satisfactory- Some failed to relate observations to
corresponding changes in the demand/supply of
riders/walkers, e.g.
Riders are able to deliver faster than walkers, so
their supply is larger.
Self-provided motorbikes could lower the cost of
production and result in a bigger supply of riders.
24
Paper 2-A1 comments
Q3a) Good.
- Some failed to use the comparatives (‘more’/‘less’) in the
answers.
Q3b) Good.
25
Paper 2-A1 comments
Q6a) Satisfactory.
- Some mistakenly assumed that output was constant and thus
arrived at a wrong conclusion.
- Regarding the definition of deflation, some made errors like
‘negative price level’ and ‘decreasing rate of growth of the price
level’.
Q6b) Fair.
- wrong sign associated with the ‘expected rate of inflation’ upon
rearrangement of terms in the Fisher equation
- omission of the keyword ‘expected’ in the deflation term
- confusing statement like ‘deflation (rate) is negative’
26
Paper 2-A1 comments
Q8a) Excellent.
Q8b) Good- stopped after obtaining the new level of money
supply without computing the level change.
27
Paper 2 Section A2 (Q4, 5, 7)
(a)
Verbal elaboration:
Imposition of tariff would result in a decrease in
the supply of imported goods.
Since the demand for imported goods is elastic,
the percentage decrease in quantity would be
bigger than the percentage increase in price.
Total expenditure would therefore drop.
(3)
Illustrate in the diagram:
- leftward shift in supply
- correct position of Area(+) and Area(−)
- Area(+) < Area(−)
(1)
(1)
(1)
28
Paper 2 Section A2 (Q4, 5, 7)
4.
29
Paper 2 Section A2 (Q4, 5, 7)
30
Paper 2 Section A2 (Q4, 5, 7)
5.
31
Paper 2 Section A2 (Q4, 5, 7)
32
Paper 2-A2 comments
Q4a) Satisfactory- Some wrongly compared the levelchanges in price and quantity instead of their percentagechanges or mistakenly assumed Country B to be a small
open economy or failed to show the leftward shift in its
supply curve as a result of the tariff.
33
Paper 2-A2 comments
Q4b) Satisfactory- common mistakes:
-failure to state clearly that the increase in the price of imports in
terms of local currency.
-wrong statement that the increase in the price of imports would
lead to a fall in the demand for imports.
-failure to distinguish between ‘total import value’ and ‘the
volume of imports’.
Q4c) Fair- Some managed to explain how devaluation might
affect Country B’s exports or imports of services.
-Some point out that net income from abroad or capital flows
may be affected, but failed to give proper reasons.
34
Paper 2-A2 comments
Q5a) Good.
- Some did not evaluate whether the STCGT was consistent
with those principles.
Q5b) Good.
- Some mixed up the definitions of positive statement and
normative statement.
- Some mistakenly defined a positive statement as one that can
be proven to be true by facts.
35
Paper 2-A2 comments
Q7a) Good.
- Some mistakenly assumed that output was constant and thus
arrived at a wrong conclusion.
- Regarding the definition of deflation, errors include ‘negative
price level’ and ‘decreasing rate of growth of the price level’.
Q7b) Satisfactory.
-failure to use the calculation in (a) to support their answer in (b).
-arguing that the statement was wrong instead of defending it.
36
Paper 2 Section B1 (Q9)
37
Paper 2 Section B1 (Q9)
9.
(b)
Verbal elaboration:
Better infrastructure would lead to an increase in
production capacity and potential output, and
thus an increase in long-run aggregate supply.
More infrastructure investment would lead to an
increase in aggregate demand. Aggregate
output would hence increase.
(5)
Illustrate in the diagram:
a rightward shift in the AD curve
a rightward shift in the LRAS curve
a higher level of aggregate output
(1)
(1)
(1)
P
Y
38
Paper 2-B1 comments
Q9ai) Good.
- Some misread the question as asking about the types of
factors of production.
-Some missed its connection with ‘nature’ in describing
primary production and merely stated that it involved
production of raw materials
Q9aii) Good.
Q9b) Good.
- failure to specify the reason behind an increase in AD
and/or LRAS.
- mistaking the value of output (i.e., price level times output,
P x Q) for aggregate output.
39
Paper 2 Section B2 (Q10)
40
Paper 2 Section B2 (Q10)
10.
41
Paper 2 Section B2 (Q10)
10.
42
Paper 2 Section B2 (Q10)
10.
(e)
Verbal elaboration:
Demand for the courses increases. If the price
does not adjust fast enough in response to the
change in demand, then it would fall short of the
equilibrium price and thus result in excess
demand or shortage/queues.
(3)
Illustrate in the diagram:
- rightward shift of demand curve
- correct position of shortage
(1)
(1)
43
Paper 2 Section B2 (Q10)
10.
44
Paper 2-B2 comments
Q10a) Satisfactory- some failed to identify the benefactor
and the beneficiary.
-some confused the definition of positive externality
(marginal social benefit > marginal private benefit) with its
inefficiency condition (marginal social benefit > marginal
social cost).
Q10b) Poor- failure to state accurately which two parties
and who is supposed to compensate whom.
- policies like tax or subsidy for market mechanism.
Q10c) Good- argued that (instead of division of labour)
better health is the reason for higher productivity.
45
Paper 2-B2 comments
Q10d) Excellent.
Q10e) Satisfactory.
- failure to label the demand-supply diagram properly (with
missing P, Q, S, D, excess demand).
- failure to identify the increase in demand and/or to state
the underlying reason.
- failure to mention shortage or excess demand in their
verbal explanation.
Q10f) Good.
46
Paper 2 Section B3 (Q11)
47
Paper 2 Section B3 (Q11)
48
Paper 2 Section B3 (Q11)
(b) No, it should be counted as transfer payment.
(2)
49
Paper 2 Section B3 (Q11)
50
Paper 2 Section B3 (Q11)
51
Paper 2 Section B3 (Q11)
52
Paper 2 Section B3 (Q11)
53
Paper 2 Section B3 (Q11)
54
Paper 2 Section B3 (Q11)
(e)
55
Paper 2 Section B3 (Q11)
(e)
56
Paper 2 Section B3 (Q11)
(e)
57
Paper 2 Section B3 (Q11)
(e)
58
Paper 2-B3 comments
Q11ai) Good. Some mistook it with the depression or even
recovery phase of business cycle.
Q11aii) Satisfactory- only a broad explanation for the
change in unemployment rate for the economy as a whole
(i.e., all industries).
- failed to compare the two given industries properly—due
to their lack of understanding about the nature of these
industries and/or to their confusing description (e.g., failing
to specify which particular industry they were talking about).
Q11b) Good- wrong statement that the sum should be
included in the calculation of government consumption
expenditure even if they realise it is a transfer payment.
59
Paper 2
Q11c) Satisfactory- some named ‘entry barriers’ or ‘imperfect
information’, which are not mentioned in Source C.
Q11d) Good- some failed to state accurately the function(s) of
money OR mistakenly quoted the properties of good money
(e.g., durability) in their answers.
60
Paper 2
Q11e) Satisfactory.
- Some presented their answers in separate paragraphs
and organised their ideas.
- Some explained the effects of Scheme C and Scheme H
in relation to the three objectives one by one, and then
compare their effects to come up with policy
recommendation under each objective.
- some misread the question and tried to analyse the
three objectives in one go, which resulted in a loss of
focus in their scheme comparison.
61
Paper 2
Objective 1:
- Some read the sources carefully, noting that there was
insufficient manpower in public hospitals, and concluded
that unemployment was not a big problem in the health
industry.
- Some discussed the overall unemployment rate only,
instead of unemployment in different industries.
- Some provided irrelevant answers such as dis-incentive
effect on labour caused by consumption vouchers and
use of unemployment-rate formula.
62
Paper 2
Objective 2:
- Some argued that the consumption vouchers (as
transfer payments aiming at boosting private
consumption) would not affect labour productivity.
- a few argued that (by improving workflow or increasing
capital per unit labour) the widespread use of electronic
payment method may improve labour productivity.
- mistaking an increase in employment in the retail/health
industry for an increase in labour productivity.
63
Paper 2
Objective 3:
- ability to apply their knowledge to analyse the effect on
aggregate output.
- failure to specify clearly whether they were talking about
the short run or the long run.
- mis-using the ‘short run and long run’ in economics and
‘short period of time and long period of time’
interchangeably.
- mis-reasoning that long-run aggregate supply would
increase whenever more workers are employed or
whenever the unemployment rate drops.
64
Paper 2
2022
Max mean(%) SD(%)
Paper 1
paper 2
Q11(ai)
2
75
38.5
2022 Count
mean
SD
mean
Q11(aii)
2
65
38.5
Chi
4583
54.4%
18.0%
53.9%
25.1% 47.1% 35.1%
Q11(b)
2
68.5
43
Eng
6569
70%
18.5%
69.2%
21.9% 67.6% 31.7%
Q11(c)
4
54.75
34.25
Q11(d)
4
65.5
37.75
Q11(e)
12
59.17
34.67
2019 12593
53.27
33.81
Q11(e)
EC
2
55
42
2020 12023
52.33
29.25
2021 11585
60.33
30.17
2022 11152
59.17
34.67
Essay Total
Mean(%) SD(%)
SD
Essay
mean
SD
65
Paper 2
66
Paper 2
General reminder:
 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 written not in the
designated spaces will NOT be marked
67
Paper 2 Overall comments
 Some candidates failed to demonstrate a thorough understanding of
basic economic concepts and principles, especially when applying them
to solve hypothetical or real-life problems.
Candidates should
strengthen their analytical skills instead of simply regurgitating concepts
and theories
 Some candidates lacked skills to extract information from tables and
graphs as well as to draw 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.
 Some candidates had difficulty in presenting their answers in a clear
and precise way. Candidates should equip themselves with better
language abilities as well as graphical skills, and make sure that their
handwriting is legible.
 Some candidates did not read the questions carefully.
Candidates
should devote special attention to the assumptions and conditions laid
down in the questions to avoid giving irrelevant answers.
 Some candidates did not seem to be well-informed about current
economic issues in the real world. Candidates should pay more
attention to economic news.
68
Grading - paper marks and subject marks




Raw mark of Paper 1 (max mark): 45
Raw mark of Paper 2 (max mark): 104
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.
69
Grading - Grading procedures
1.
2.
3.
Sample scripts selection
Standardisation
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:
70
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 2020 and 2021 DSE (library
scripts)
71
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
72
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
73
•
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*
74
75
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