Prepare for success in the Hong Kong Diploma of Secondary Education (HKDSE) Economics Exam with key concepts, exam structure, study strategies, and career pathways.

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1. Course Overview: What Is DSE Economics?

DSE Economics is a popular elective subject in the Hong Kong Diploma of Secondary Education Examination (HKDSE). It integrates theoretical knowledge with real-world economic issues to develop students’ analytical thinking and economic reasoning.

Key Features:

• Theory Meets Practice: Covers core topics like supply and demand, market structures, and macroeconomic policies, applied to Hong Kong and global contexts.
• Data Interpretation Skills: Analyze indicators such as GDP, inflation rate, and unemployment.
• Critical Thinking: Evaluate the pros and cons of government policies and market mechanisms.
• Assessment Format: 80% public exam + 20% School-Based Assessment (SBA).

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2. Updated Curriculum Structure (2024)

🔹 Compulsory Topics

Topic	Key Content	Core Concepts
Basic Economic Concepts	Scarcity, Opportunity Cost, Production Possibility Frontier (PPF)	Trade-offs between efficiency and equity
Markets and Prices	Demand and Supply, Price Elasticity	Market equilibrium, Government intervention (e.g., price controls)
Firms and Production	Cost structure, Market forms (Perfect Competition, Monopoly)	Profit maximization (MR=MC)
Macroeconomics	National income, Banking & money, International trade	Fiscal and Monetary policy tools

🔹 Elective Topics (Choose 2 out of 4)

Module	Key Focus	Sample Question
Monopoly Pricing	Price discrimination, Natural monopoly	Analyze MTR’s pricing strategy
Trade and Development	Comparative advantage, Trade barriers	Assess the impact of the US-China trade war
Hong Kong Economy	Linked exchange rate system, Industrial transformation	Discuss challenges in HK’s economic restructuring

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3. HKDSE Economics Exam Format and Grading

🔸 Public Exam (80%)

Paper	Format	Focus	Duration / Weight
Paper 1	Multiple Choice (30 Qs)	Quick application of concepts	1 hour / 20%
Paper 2	Short Answers + Data Response + Essay	Graphs, Policy Analysis	2 hours / 60%

🔸 School-Based Assessment (SBA, 20%)

• Research Report (~2,000 words)
  Sample Topic: “The Impact of Minimum Wage on Hong Kong’s Labor Market” Must include:
  • Data analysis (e.g. unemployment trends)
  • Application of economic theory (e.g. labor market model)
  • Policy recommendations

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4. High-Impact Study Strategies

4.1 Supply and Demand Graphing Tips

Graphing Mnemonics:

• Label axes: Price (P) vs Quantity (Q)
• Draw Demand (D) downward-sloping, Supply (S) upward-sloping
• Mark Equilibrium (E) where D = S

Government Intervention Examples:

• Price ceiling → Shortage (e.g. rent control)
• Price floor → Surplus (e.g. minimum wage)

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4.2 Interpreting Economic Indicators (2023 Data)

Indicator	Definition	Hong Kong Snapshot
GDP	Gross Domestic Product	Approx. HK$2.8 trillion
Inflation Rate	Annual change in price level	2.1% (Composite CPI)

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4.3 Essay Writing Framework (Balanced Argument Method)

Balanced Argument Framework:

yaml複製編輯✅ Support: Improves efficiency / fairness  
❌ Against: May distort market outcomes  
🔚 Conclusion: Weigh pros and cons (e.g. “Subsidies may work better than price controls”)

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5. Essential Resources for DSE Economics

Type	Recommended Resource	Use Case
Textbook	DSE Economics 5* Guide*	Theory + Practice Questions
Past Papers	HKDSE 2012–2023	Time management + Question familiarity
Economic Data	C&SD, World Bank	Real-world data for essays
News & Analysis	The Economist, Hong Kong Economic Journal	Link theory with current events

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6. Common Challenges and Solutions

6.1 Confusion Over Market Structures

Market Type	Number of Firms	Pricing Power	Example
Perfect Competition	Many	None	Street market vendors
Monopoly	One	High	HK Electric

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6.2 Distinguishing Macroeconomic Policies

Memory Tip:

• Fiscal Policy = Government Spending + Taxation (“Spend and Collect”)
• Monetary Policy = Interest Rates + Money Supply (“HKMA adjusts interest”)

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6.3 Weak SBA Data Analysis?

3-Step Strategy:

1. Use Official Data (e.g. C&SD)
2. Visualize with Charts (e.g. line graph showing inflation trend)
3. Apply Theory (e.g. demand-pull vs cost-push inflation)

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7. HKDSE Economics Grading Rubric (5** Sample Answer)

Question: “Evaluate the pros and cons of Hong Kong’s Linked Exchange Rate System.”

High-Scoring Response:

• ✅ Pros: Stability of HKD attracts foreign investment (with data)
• ❌ Cons: Loss of independent monetary policy (reference 2008 crisis)
• 🔚 Conclusion: Suitable for open economies but requires strong financial oversight

Common Mistakes:

• Confusing fixed exchange rate with linked exchange rate
• Lack of data support

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8. Further Studies and Career Pathways

8.1 University Programs

Related Majors:
Economics, Finance, Public Policy

Top Choices:

• The University of Hong Kong – Economics & Finance
• The Hong Kong University of Science and Technology – Economics

8.2 Career Prospects

• Finance Sector: Economic Analyst
• Policy Research: Think Tank Researcher
• International Organizations: World Bank Consultant

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9. Time Management for Exam Success

Paper	Time Allocation Tips
Paper 1	< 1 min per question, do conceptual questions first
Paper 2	30 mins for data response, 50 mins for essay

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✅ Daily Action Plan for DSE Economics

• Read 1 news article daily and connect to theory (e.g. “Inflation → Supply-Demand Model”)
• Create comparison notes of economists (e.g. Keynes vs. Friedman)
• Join mock exams or workshops (e.g. HK Economics Association events)

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🔗 Useful Links

• Sample Papers – HKEAA
• Hong Kong Census & Statistics
• Investopedia Economics Glossary
• Education Bureau

Disclaimer: This guide was drafted and organized using AI. Final editing by Prof. Chan Kwok Wai; Managing Editor: Kong Yik Leung.