DSE Econ 時事 第7週（2026年）

Ask students to illustrate and explain with a labour supply diagram how a universal retirement age of 65 would shift or change the effective supply of civil service labour, discuss short-run vs long-run effects on wage pressure and employment, and evaluate whether the policy would relieve or worsen labour shortages.

Set a data-response or essay question asking candidates to analyse how extending average tenure might affect average productivity in the civil service, considering training costs, ageing-related productivity changes, and the role of digitalisation/AI in productivity improvements.

Provide students with selected sentences from the article and ask them to classify each as positive or normative, justify their classification, and then construct one balanced evaluative conclusion using both positive evidence and normative criteria.

Pose a short calculation/essay: estimate qualitatively (or with given numbers) the opportunity cost of retaining 1,000 senior civil servants for 5 extra years in terms of foregone promotions and potential public-sector innovation; evaluate whether the opportunity cost justifies alternative targeted retention or training policies.

Ask students to explain why national security is a public good (non-excludable, non-rival) and evaluate the advantages and trade-offs of stronger public provision of security in Hong Kong, including potential crowding-out or chilling effects on private sector activity.

Pose a question requiring analysis of how changes in the strength/clarity of private property rights (due to legal or political shifts) affect domestic and foreign investment in Hong Kong, using supply-side reasoning and short-run versus long-run impacts.

Design an exam item that asks students to show, with a demand/supply diagram for financial capital or for shares, how increased perceived political/security risk would affect share prices and bond yields in Hong Kong, and to evaluate policy measures to restore market confidence.

Ask students to identify and classify externalities arising from national-security policies in Hong Kong, analyse market failures they create, and evaluate government interventions (legislation, monitoring, compensation) in terms of efficiency and equity outcomes.

Ask students to explain, with a diagram if appropriate, how a mandatory seat-belt law can correct a negative externality; evaluate the advantages and disadvantages of legislative mandates versus alternatives (education campaigns, improved belt design, targeted subsidies) using welfare analysis.

Set a data-response or structured question asking students to classify buses, tunnels and traffic management measures (e.g., tolls) as private, public or club/common-pool goods and explain implications for provision, pricing and regulation in Hong Kong.

Require an evaluation question where students assess whether the proposed seat-belt policy, combined with enforcement and design improvements, would increase allocative/social efficiency; ask them to weigh marginal benefits against marginal costs and consider information/administrative failures.

Pose a short essay asking students to analyse the equity implications of heavy fines and prison terms versus lighter penalties or exemptions (e.g., for the elderly or school services), and to recommend an equitable policy mix consistent with efficiency goals.

Short data-based question: using evidence from the article (e.g. IPO growth, foreign parent companies >11,000), explain two ways stronger property-rights protection can raise private investment in Hong Kong; then evaluate one limitation to this mechanism.

Data-response/interpretation: ask students to use the cited 27.8% rise in the Hang Seng and the doubling of IPO value to explain how changes in investor expectations affect share prices and firms' decisions to issue equity; include an evaluative part on short-run volatility versus long-run capital-raising benefits.

Application question: require students to analyse how increased labour mobility into Hong Kong would affect the local labour supply curve, wages for skilled workers and firm productivity, and to assess likely distributional effects on households.

Exam-style case: present the article as a case and ask students to identify which types of expansion (e.g., internal growth, foreign direct investment, listing via IPO) are illustrated, explain the microeconomic incentives for each, and evaluate which form is most likely to strengthen Hong Kong’s competitiveness.

Ask students to explain whether public CCTV surveillance is a public good, using definitions and a short diagram; evaluate why private markets might under‑provide it and justify government provision using efficiency and equity criteria (10 marks).

Set a structured question: identify and classify the main positive and negative externalities; draw a welfare diagram showing socially optimal provision versus market provision and recommend policy responses (e.g., regulation, compensation, cost–benefit analysis) (15 marks).

Provide data (e.g., current cameras, planned additions, budget) and ask students to sketch an LRAC curve, indicate where economies/diseconomies occur, and assess whether phased rollout or one‑off integration is more cost‑effective given compatibility concerns (10 marks).

Pose a short quantitative task: given two alternative public projects and their expected social benefits, calculate the opportunity cost of choosing the CCTV expansion and discuss how policymakers should compare marginal benefits under a constrained budget (8 marks).

Ask students to draw and explain a supply-and-demand diagram for Hong Kong housing, show the effects of an increase in HOS supply or a supply constraint, and evaluate impacts on price, quantity and waiting lists; include short-run vs long-run considerations.

Give data or a hypothetical market for flats and ask students to show graphically and numerically how a per-unit subsidy (or expanded HOS provision) alters equilibrium price and quantity, calculate changes in consumer/producer surplus and government expenditure, and assess efficiency and equity implications.

Require an essay-style question evaluating how low housing mobility can affect geographic labour mobility, unemployment/mismatch, and productivity; ask students to propose and assess policy measures (e.g., resale liberalisation, mobility incentives) using microeconomic reasoning.

Ask students to discuss how limits on resale rights for subsidised flats influence incentives to work, invest and relocate, analyse the trade-offs between protecting affordability and improving liquidity, and recommend reforms based on efficiency and equity criteria.

Ask students to draw and explain supply and demand diagrams showing (a) a rightward supply shift from early blooms, (b) a leftward demand shift from weaker spending, and determine the net effect on equilibrium price and quantity; include explanations of short-run vs long-run adjustments for perishable goods.

Give data from the article (e.g. price cut 10–20%, orchids now HK$148, sales down 50%) and ask students to estimate/interpret price elasticity of demand and income elasticity concepts, and discuss how elasticity affects sellers’ pricing strategy during the festival.

Prompt students to evaluate which market structure best describes Hong Kong flower fairs and mainland online entrants, asking for implications for price-setting, non-price competition and long-run profits; include arguments using ease of entry, product differentiation and transport constraints.

Ask students to explain how price changes functioned to ration scarce/perishable flowers, and to assess alternative non-price allocation methods (queues, rationing) and their likely efficiency and fairness during the fairs.

Ask students to illustrate the private vs social cost diagram for road accidents, calculate deadweight loss given hypothetical cost data, and evaluate policy responses (regulation, subsidies for safety equipment, targeted infrastructure spending) for reducing external costs in Hong Kong.

Have students classify different types of roads (scenic rural roads vs tolled links) as public, private or club goods and discuss implications for provision and financing; set an exam question requiring evaluation of tolls, government provision or targeted maintenance for black spots using HK examples.

Pose a scenario with a fixed road-safety budget and ask students to calculate opportunity costs of funding safety upgrades on Bride’s Pool Road versus other public projects, and to justify a resource allocation using efficiency and equity criteria.

Ask students to analyse the distributional impacts of directing more funds to rural scenic roads versus urban infrastructure, discussing trade-offs between equity and efficiency and suggesting compensatory policies (subsidies for helmets, targeted patrols).

Ask students to identify two positive and two normative statements from the article, convert one normative claim into a testable positive hypothesis, and outline how they would gather evidence to test it (data sources, variables, basic empirical prediction). (10–12 marks)

Provide the survey figures (e.g., top‑10 average HK$4.34m vs bottom‑10 average HK$21,466) and ask students to draw and explain a labour‑supply diagram showing how low retainers might reduce supply of qualified INEDs; evaluate short-run vs long-run effects and non-monetary factors affecting supply. (8–12 marks)

Ask students to compare fixed retainer fees and performance‑linked pay for INEDs: explain advantages/disadvantages for independence and governance, and recommend a pay scheme using article evidence and economic reasoning (diagrams or bullet policy recommendation). (8 marks)

Pose a policy-evaluation question: analyse how the HKEX caps on concurrent roles and tenure are likely to affect the supply, wages and distribution of INEDs across large and small firms; include discussion of unintended consequences and short-run vs long-run impacts. (12 marks)

Ask students to draw a supply-and-demand diagram for university places and show the effect of an admission quota (vertical quota line) on equilibrium quantity, consumer/producer surplus and deadweight loss; include numerical data from the article (e.g. current non-local share 27.1% vs quota 40%) and ask them to calculate percentage shortfall or excess under hypothetical demand scenarios.

Set a quantitative question where teachers give initial supply/demand schedules for university places or student hostel beds and ask students to show the new equilibrium after the quota change and/or the effect on student-housing rents; ask students to discuss how elasticities of demand/supply alter the incidence of any cost changes.

Require students to explain and sketch average cost curves showing short-run and long-run effects of increasing enrolment, then evaluate policy trade-offs using article data (e.g. 5,000 additional hostel places proposed) and ask for evaluative judgement on whether further quota increases are desirable given capacity constraints.

Pose an evaluative 10–12 mark question: using labour supply/demand diagrams, ask students to analyse how a rise in non-local graduates who enter the local labour market could shift labour supply, affect wages and unemployment for local graduates, and assess policy responses (e.g. visa restrictions, quotas) using evidence from the article.

Ask students to draw supply and demand diagrams for plane/train seats (or hotel rooms) showing a rightward shift in demand; explain resulting shortage and analyse the effects of allowing prices to rise versus non-price rationing (queues, priority boarding). Include numerical changes using the passenger figures in the article to calculate demand shifts.

Set a problem where students estimate price elasticity of demand for peak-season flights using hypothetical fare changes and passenger numbers from the article; ask how a carrier should change price to maximise revenue and discuss cross-price elasticity between nearby destinations (e.g., Taipei vs Osaka).

Give students a short-case asking them to compute the opportunity cost of taking two leave days for a worker with given daily wage and likely holiday expenditures; ask for normative evaluation of whether the extended holiday is economically justified and what factors would alter that judgement.

Pose a question asking students to analyse how a temporary drop in labour supply in hospitality/transport during Lunar New Year shifts the short-run labour supply curve, affects wages and output, and evaluate firm responses (temporary hires, overtime pay, altered opening hours).

Ask students to draw a supply and demand diagram for EMI class places, show the effect of relaxing the 85%/top-40% thresholds (a rightward shift in supply or increase in capacity), and explain short-run effects on equilibrium price (non-monetary price: admission difficulty) and quantity of EMI places and on welfare of stakeholders (parents, schools, students).

Set a data-based or qualitative question asking students to identify signs of shortage in the article, explain the consequences for allocation (e.g., oversubscription, reliance on DSS schools), and evaluate policy options (relax thresholds, expand teacher training) using short-run versus long-run supply responses.

Ask candidates to discuss the opportunity costs for a subsidised school choosing to invest in becoming EMI (quantify or list staff training, curriculum changes, potential loss of students preferring CMI) and to evaluate whether the benefits outweigh these costs using cost–benefit reasoning.

Pose an evaluative essay: assess how expanding EMI could affect equity of educational outcomes, identify which groups gain or lose, and propose two policy measures (with economic justification) to mitigate inequitable outcomes (e.g., phased rollout, targeted language support, adjustment of eligibility rules).

Ask students to use a welfare diagram (MPB, MSB) to explain the underinvestment problem in R&D/AI, calculate the welfare loss without intervention, and evaluate two budget measures (e.g., R&D subsidies vs direct government provision) in terms of efficiency and incentives.

Provide a LRAC diagram showing economies of scale and ask students to explain why space/AI firms may be natural candidates for large-scale support, then evaluate whether government investment reduces average costs and how it affects market structure and competition.

Pose a data-response or short essay: compare the merits of financing a commercial space start-up through issuing shares vs bonds (effects on control, cost of capital and risk), and evaluate budget or regulatory measures (e.g., listing incentives, RMB bond facilities) that Hong Kong could adopt to facilitate finance.

Set an essay: define market, mixed and centrally planned economies, and critically assess (using equity, efficiency and political economy criteria) whether Hong Kong should adopt a more state-led industrial policy through the budget to foster ‘inspirational’ growth.

Ask students to draw supply and demand diagrams showing a leftward shift in supply for bridge crossings and explain effects on equilibrium quantity and non-price congestion; include a calculation using the article’s 11.38 million expected trips (teachers provide hypothetical capacity numbers) to compute shortage and lost consumer surplus.

Set a data-response or essay question asking students to identify the negative externalities from the closure, illustrate welfare loss with a diagram, and evaluate policy remedies (e.g., congestion charge as a per-unit tax, increased shuttle services) with reference to efficiency and enforcement practicalities.

Require students to classify the bridge/link under the goods typology, explain implications for provision and maintenance decisions (private operator vs government), and critically assess trade-offs between tolling, regulation and public funding for repairs and capacity expansion.

Pose a short calculation/short-answer question asking students to estimate the opportunity cost of delays (use teacher-provided average delay minutes × number of vehicles × value of time) and discuss how these costs justify different policy responses.

Ask students to draw supply and demand diagrams showing (a) the initial equilibrium for raw oysters and (b) the effect of a health advisory that shifts demand left; explain effects on equilibrium price and quantity, and discuss short-run implications for restaurant revenue and possible changes in demand for substitutes (e.g. cooked dishes).

Provide data (or ask qualitatively) and ask students to assess whether demand for raw oysters is likely elastic or inelastic in this episode, explain how elasticity affects total revenue for restaurants, and discuss how cross-price elasticity with cooked substitutes would influence menu pricing and revenue strategies during the scare.

Ask students to illustrate the negative externality on a welfare diagram (private vs social costs) and evaluate policy responses the government could use (e.g. mandatory origin disclosure, temporary advisories, stricter import checks), discussing efficiency and equity trade-offs and likely effects on restaurant welfare and public health.

Ask students to explain how product differentiation and reputation affect market outcomes for oyster suppliers and restaurants, why some outlets (those stressing European/Japanese origins) suffer less demand loss, and how non-price competition (labelling, quality assurance) could be emphasised in exam-style policy or firm-level questions.

Ask students to compare and contrast features of a market economy and a planned economy using the Hong Kong–mainland policy alignment as a case: evaluate how increased government planning could change resource allocation and incentives in Hong Kong (use examples and consider efficiency vs coordination gains).

Require a structured response: explain how policies (e.g., visa programmes, Greater Bay Area initiatives) could shift labour supply in key sectors; draw a supply curve shift diagram for the labour market of a specialised sector and evaluate short-run and long-run effects on wages and employment.

Ask students to analyse specific policies from the article and assess their likely impact on labour productivity using examples (training, R&D incentives); include possible measurement issues and discuss whether productivity gains will be broad-based or concentrated in specific sectors.

Give students statements drawn from the article and ask them to classify each as positive or normative, then write a short evaluative paragraph turning one normative claim into a testable positive hypothesis and suggest evidence that could support or refute it.

Ask students to calculate productivity gains: given current processing times (traditional e-channel 8s, contactless pilot 5s) and fixed number of gates, compute percentage increase in throughput and discuss implications for average labour cost per passenger and possible reallocation of staff.

Pose an evaluative question asking how stricter enforcement (higher expected penalty) shifts supply of illegal labour and impacts wages and employment in low-skilled service sectors; include a diagram showing supply shifts and short-run effects on equilibrium wage and quantity.

Ask students to assess how relaxed e-channel rules and more Top Talent Pass approvals might affect short-run and long-run labour mobility into Hong Kong, and to evaluate consequences for local labour markets, housing demand and public services.

Give numerical data (e.g., fixed cost of installing extra e-channels, variable cost per passenger) and ask students to compute average cost at different throughput levels, identify range where economies of scale occur, and evaluate trade-offs (capital costs vs. congestion relief).

Ask students to draw and explain demand–supply diagrams showing how reduced local demand or higher costs (rent) change equilibrium, and to evaluate short‑run outcomes (lower quantity, possible business exit) and policy/business responses (e.g., price change, relocation).

Give hypothetical data or a scenario and ask students to calculate price elasticity of demand, interpret whether demand is elastic or inelastic, and discuss pricing and revenue strategies (raise price vs. reduce cost) and implications for the firm’s decision to close or stay open.

Require students to classify the market, explain features (product differentiation, short‑run profits, long‑run entry/exit), and analyse how branding and non‑price competition (heritage, ‘classic flavour’) affect Honolulu’s competitive position and long‑run profitability.

Ask students to discuss how economies and diseconomies of scale could have influenced Honolulu’s overseas expansion and local branch closures; include cost‑curve sketches and evaluate whether expansion via franchising or focusing on core outlets would be more efficient.

Ask students to evaluate the pros and cons of a government buyback of property rights versus offering replacement HOS/Housing Society flats, focusing on transaction costs, legal barriers, and incentives for owners and tenants.

Require a diagram and written analysis showing how (a) immediate rehousing using existing stock and (b) constructing a new estate would affect supply, equilibrium price/rent and waiting times in the Tai Po housing submarket.

Ask students to identify the negative externalities involved, explain why private markets may undersupply proper maintenance, and assess government interventions (regulation, subsidies, stricter enforcement) to internalise these externalities.

Design a data-response or essay question asking students to compare horizontal and vertical equity implications of different compensation schemes (equal cash grants, needs-based allocation, priority rehousing) and recommend a fairest policy.

Ask students to explain the features and types of bonds, then evaluate why the authority might prefer bond issuance to other financing methods (e.g. equity or bank loans); include a data-response part asking students to list advantages and risks for the issuer and investors.

Provide a short calculation question: given an interest rate scenario (e.g. fixed vs floating), calculate total interest paid over 10 years and compare with a typical 5-year loan; follow with an evaluative question on how interest rate risk and loan tenor affect the authority’s budget and financial sustainability.

Compose an essay-style question asking students to distinguish between public and private goods using the arts hub as a case study, and to analyse the merits and drawbacks of using commercial property revenue to finance public cultural facilities (consider externalities, crowding out, and equity concerns).

Design an application question: identify at least two alternative uses or funding options the authority could have chosen, estimate the opportunity costs of the chosen residential-development financing route, and assess whether the benefits justify the foregone alternatives.

Ask students to draw and explain a supply and demand diagram showing the effect of the extended holiday (demand shift) and a simultaneous supply constraint (leftward shift/vertical short-run capacity) on equilibrium price and quantity; include evaluation of short-run vs long-run adjustments (e.g., airlines adding flights, more coach services).

Provide students with hypothetical percentage changes (e.g., 5% rise in tour price, 8% increase in bookings to South Korea) and ask them to calculate price elasticity for different destinations, interpret whether demand is elastic or inelastic, and discuss factors explaining differences (substitute availability, necessity of travel, income effect from holiday length).

Pose a scenario where rail operator limits group-ticket quotas; ask students to explain the shortage using a diagram, discuss why prices may rise or non-price rationing (queues, quotas) occur, and evaluate policy or firm responses (raising fares, allocating more seats, shifting travellers to flights/coaches).

Ask students to explain the concept of positive externalities using the Lunar New Year events, show the private vs social benefit in a diagram, and evaluate government options to encourage tourism (subsidies for events, marketing) and possible trade-offs (congestion, overcrowding).

Provide a demand–supply diagram showing the effect of a negative demand shock (streaming and cross‑border spending). Explain short‑run effects on equilibrium price and quantity, changes in consumer and producer surplus, and evaluate why cinemas may close versus lowering ticket prices.

Give hypothetical price and cross‑price elasticity values; calculate the predicted percentage change in quantity demanded after a price rise and after increased availability of streaming. Discuss how elasticity should shape cinemas’ pricing and promotion strategies, and evaluate the limitations of using price cuts to revive attendance.

Ask students to identify the market structure of local cinemas, list its features with examples from the article (differentiation, non‑price competition), and assess how entry/exit and non‑market competition from streaming change long‑run profits and number of firms.

Ask students to sketch a long‑run average cost curve showing economies then diseconomies of scale; use the Palace IFC example to argue whether consolidation or expansion could lower average costs and whether rent levels can offset potential economies of scale.

Ask students to draw supply and demand diagrams for luxury apartments in West Kowloon and explain how improved sentiment among wealthy buyers would shift demand; use the HK$46m sale and HK$50m purchase as data to discuss effects on equilibrium price and quantity and to evaluate short‑run vs long‑run supply responsiveness.

Provide a numerical scenario (e.g. price of a luxury flat rises by 5% and quantity demanded falls by 1%) and ask students to calculate price elasticity of demand, interpret whether demand is elastic or inelastic, and discuss implications for seller revenue and developer pricing strategies.

Pose a short‑answer or data‑response question asking students to explain the role of clear property rights and registration in facilitating housing transactions, and to evaluate how use of nominee companies might influence market transparency and transaction costs.

Ask students to discuss the opportunity cost of upgrading (e.g. foregone rental income or alternative investments) and to calculate a simple comparison using the reported prices (bought in 2016 for HK$32.5m, sold later for HK$46m, purchase of duplex HK$50m) to evaluate whether the upgrade is financially justified ignoring non‑monetary preferences.

Ask students to explain how scarcity of public rental flats creates queues and unmet demand; use the article data (waiting times, numbers allocated vs applications) to assess the severity of scarcity and to illustrate opportunity costs the government faces when choosing different housing programmes.

Require a supply-and-demand diagram showing a shortage at the current (subsidised) allocation method, and ask students to explain why a non-price allocation (queues/priority) arises, evaluate its consequences (queuing, welfare loss) and suggest market or non-market solutions with diagrammatic support.

Set a question where students draw a price-ceiling diagram to show shortages and deadweight loss, then evaluate the government's response (light public housing, increased construction, tenancy-abuse enforcement) in terms of reducing the shortage and trade-offs between efficiency and equity.

Ask students to discuss equity versus efficiency: evaluate the fairness of prioritising applicants by district and waiting time, and assess whether measures like light public housing improve horizontal and vertical equity in Hong Kong’s housing policy.

Ask students to draw labelled supply and demand diagrams for the luxury Mid‑Levels market showing (a) an increase in demand or fall in supply that could explain the price rise, and (b) how forced sales (receivers) shift supply; require calculation of the percentage price change from HK$60.6m to HK$100m and an explanation of why some sellers still accept losses while others obtain gains.

Give students data or ask them to use the article figures to discuss and (where possible) calculate price elasticity of demand for luxury versus mass‑market housing; include a short calculation task using hypothetical changes in quantity and price and an evaluative question on how elasticity affects sellers’ ability to hold asking prices.

Require students to illustrate with diagrams how a rise in second‑hand prices increases producer surplus and reduces consumer surplus, and contrast this with a welfare outcome when receivers sell below market price; include a brief written evaluation of who gains/loses (sellers, buyers, banks) and policy implications.

Ask students to explain the role of secure property rights and enforcement (e.g., bank seizures, receivers) in facilitating transactions, and to evaluate how the threat of repossession and forced sale influences owners’ incentives, supply volatility and market prices (short answer or structured essay).

Calculation and explanation: give students the reported NIMs and HIBOR changes and ask them to calculate the likely change in net interest income for a simplified bank balance sheet (loans and deposits), then explain with a diagram how falling base rates compress NIM and affect bank behaviour.

Data interpretation + evaluation: provide figures for fee income growth, bad-debt ratio increases and loan/deposit changes; ask students to compute the impact on pre-tax profit and evaluate short-run strategies (e.g., increasing fee-based services vs. cutting risky lending) to restore profit maximisation, referencing marginal revenue and marginal cost concepts.

Application and analysis: ask students to explain, using the kinked-demand model or game-theory reasoning, why banks may avoid aggressive price competition on prime rates and instead use non-price competition (wealth-management fees), and evaluate welfare implications for consumers.

Short-answer + evaluation: ask students to calculate how an X% rise in trading volumes or commissions could affect bank fee income and to discuss the microeconomic risks (information asymmetry, principal–agent problems) when banks sell high-yield products to retail customers, including policy measures for investor protection.

Give students share-price based calculations and explanations: e.g. use a hypothetical holding in CK Hutchison whose share price rises by X% to compute the change in a tycoon's net worth, then evaluate how stock market rallies affect wealth distribution and incentives for corporate managers.

Ask students to identify the type of ownership (family-controlled listed firm, founder succession) and analyse the likely agency problems and advantages (long-term planning, entrenchment), assessing implications for minority shareholders and firm investment decisions.

Set a data-based evaluation task: compare the economic costs and benefits of divesting a major asset (selling ports) versus pursuing expansion into green technology, asking students to weigh short-term liquidity and debt reduction against long-term growth and diversification for shareholders.

Pose a short essay question: explain how weakened or uncertain property rights (government blocking a sale) can influence investment, risk premiums, and market efficiency in Hong Kong, distinguishing positive and normative implications.

Ask students to use a simple production possibilities frontier (PPF) to illustrate the opportunity cost of shifting budget towards expanding English-medium classes versus maintaining current resource levels for other school services; explain the movement along the PPF and identify which choice could improve long‑run student outcomes.

Write an exam question asking students to evaluate whether secondary education should be treated as a public good or a merit good, using the MOI policy change and funding cuts as evidence to argue for government intervention or market provision and discuss equity and efficiency implications.

Pose a data-response or short essay question asking students to analyse how introducing three-year practising certificates and reduced school budgets might shift the labour supply curve for teachers (show direction and reasons) and predict effects on wages and shortages.

Ask students to explain how investments in teacher training and digital resources could increase labour productivity in schools, illustrate the effect on average product of labour, and assess whether higher productivity justifies relaxing MOI thresholds.

Ask students to draw demand-supply diagrams showing the immediate effect of reduced demand on equilibrium price and quantity, and to explain how changes in demand elasticity would affect the magnitude of the change; include a part requiring calculation or explanation of changes in consumer and producer surplus and deadweight loss.

Set a data-response/structured question where students evaluate how price adjustments and reputational damage serve as incentives for quality improvement, asking them to discuss short-run vs long-run price responses and whether price alone is sufficient to restore market equilibrium.

Ask students to explain using a diagram the divergence between private and social costs, evaluate the effectiveness of the FEHD’s fines and inspections as corrective policies, and discuss equity considerations (who bears the cost of compliance vs who suffers the health risk).

Require students to classify the supermarket sector, explain how non-price factors like food safety affect market outcomes, and assess how a reputational shock could change competitive behaviour (e.g., increased advertising, quality investment) and barriers to entry.

Ask students to draw supply and demand diagrams to show how a leftward shift in supply (higher seafood costs) and a change in demand composition (higher quantity of low-value bookings) affect equilibrium price and quantity, and explain why restaurant prices might remain sticky.

Give data (e.g., menu for 12 at HK$3,500; cheaper fish substitution saves HK$1,000) and ask students to explain using the law of demand and relative price how substitution between menu items can change total spending and firm revenue.

Provide the quoted figures (restaurant receipts value +0.9%, volume −0.2%, purchases +2.5%, bookings +10% at one chain) and ask students to calculate (or discuss qualitatively) price elasticity of demand for reunion dinners and explain the implications for pricing strategy and total revenue.

Pose an application question where students evaluate short-run profit-maximising choices (set price, change menu mix, run two rounds) given rising input costs and more price-sensitive customers; ask for a short calculation or an evaluative recommendation for managers.

Exam-style question: Evaluate the advantages and disadvantages for the West Kowloon Cultural District Authority of issuing bonds (up to US$1 billion) versus alternative fund-raising options (e.g., selling residential land or seeking government grants). In your answer, discuss risk to investors given no government guarantee and consider implications for the authority’s financial sustainability.

Short essay/data question: Explain how a rise in US interest rates (and the HKD-USD peg) would affect the cost of issuing US dollar bonds for the authority. Using loanable funds/interest-rate reasoning, assess how expected future rate movements should factor into the timing and size of the bond issue.

Application question: Classify the services provided by the West Kowloon arts hub (e.g., museums, performances) as private, public or merit goods and explain why these classifications justify government intervention or alternative funding mechanisms. Evaluate whether bond financing or direct subsidy is a better policy response to the market failure you identify.

Data/analysis question: Using the concept of opportunity cost, analyse the trade-offs involved in selling harbour‑view residential land to fund cultural operations. Discuss how this decision affects allocative efficiency and whether it represents an optimal use of scarce land resources.

Short data-based question: list the scarce resources in an election campaign, then explain (2–3 marks) how scarcity forces trade-offs between spending on advertising, office/transport and labour given a fixed budget and legal spending cap.

Calculation and explanation: given a candidate’s budget and itemised costs (use figures from the article), calculate the opportunity cost of reallocating HK$200,000 from advertising to paying additional canvassers and discuss the likely effect on votes received (application + 6–8 mark evaluation).

Data analysis: compute average cost per vote for two named candidates from the article, explain which costs are fixed vs variable, and evaluate whether the evidence supports economies of scale in campaigning (8–10 mark question).

Short essay: compare two wage/payment methods used in campaigns (hourly subsidy vs fixed stipend), explain how each influences labour supply and campaign costs, and recommend which method a cash-constrained candidate should use (6–8 marks).

Explain the role of private property rights in encouraging investment; analyse using examples from the article how weakening of such rights (court cancellation/forced takeover) could affect firm investment, service quality and long‑run supply of port services.

Using the CK Hutchison case, evaluate the economic consequences of a forced change in ownership for shareholders, creditors and customers; discuss which remedies (legal/arbitration) might restore investor confidence.

Assess the likely short‑run and long‑run effects on labour demand, unemployment and wages for port workers if PPC operations stop or are transferred; suggest policy or firm measures to reduce mobility/transition costs.

Explain how exclusive concessions and control of strategic infrastructure can create monopoly power; evaluate the welfare implications and whether government intervention to reassign operators could improve or worsen outcomes.

Ask students to use labour supply diagrams to show how policies (e.g. incentives for later retirement, lifelong learning) shift labour supply among older workers, and evaluate effects on equilibrium wage, employment and government pension expenditure; include a short data interpretation part using hypothetical participation rates.

Set a case-style question asking students to compare issuing bonds versus equity (shares) to finance a longevity-focused care facility: explain differences in cost of capital, risk to investors, effects on firm cash flow and consumer prices, and recommend the optimal financing mix given trade-offs.

Ask students to illustrate with an MSB/MPB diagram how positive externalities from preventive care and education lead to under-provision, then evaluate two government interventions (subsidies, regulation/standards) in terms of efficiency and equity for Hong Kong.

Give a short problem asking students to explain how economies of scale and agglomeration could lower average costs for wearable producers, draw LRAC showing where diseconomies might occur, and evaluate policy options (e.g. anchored public investment) to encourage efficient scaling.

Ask students to draw and explain a labour market diagram showing the shortage of qualified candidates for director posts, discuss factors that shift the labour supply curve (e.g., wage, non-wage attributes like political acumen), and evaluate short-run versus long-run effects of open recruitment on vacancies and wages.

Design a data/essay question: explain how internal promotions versus external hiring affect occupational mobility and training costs; evaluate the economic costs and benefits for the government of filling senior posts by promotion (internal mobility) compared with open recruitment (bringing in external labour).

Set a short calculation plus evaluation task: convert the advertised monthly salary to annual pay, then discuss how changing wage offers and bonus/benefit structures might alter the quantity and quality of applicants; ask students to assess whether higher pay alone is sufficient given non-monetary job requirements (e.g., political acumen).

Create a question asking students to identify two positive statements and two normative statements from selected excerpts, explain the difference, and discuss how normative judgments might influence government labour-market policy choices (such as open recruitment and salary setting).

Ask students to draw and explain a labour supply diagram showing how increased VPET shifts the labour supply for a skilled occupation; then evaluate short-run and long-run effects on wages, employment and government budget (use Hong Kong examples such as electric vehicle maintenance or cybersecurity training).

Create an application question requiring students to explain how VPET can increase labour productivity (marginal product of labour), illustrate effects on firms’ costs and output, and assess the likely impact on firms’ profits and Hong Kong’s competitiveness.

Pose a data‑response or essay question asking students to analyse how improved cross-border recognition of VPET qualifications and new campus projects could affect labour mobility, firm hiring, and wage differentials between Hong Kong and GBA cities; include evaluation of policy barriers and benefits.

Ask students to sketch a long‑run average cost (LRAC) curve showing economies and diseconomies of scale for a vocational training provider, explain how campus expansion might move the provider along the LRAC, and evaluate implications for access, quality and public funding in Hong Kong.

Exam-style question: Using information from the article, explain why family offices might prefer equities and private equity over bonds; draw a labelled diagram showing how a large shift into equities could affect secondary market prices and interest rates, and evaluate two possible risks for Hong Kong's financial stability.

Exam-style question: Explain how increased demand for specialised financial and tech talent from family offices could affect labour mobility in Hong Kong; assess policies the government could use to attract skilled workers and evaluate their likely effectiveness.

Exam-style question: Identify the types of expansion family offices in the article are undertaking (e.g., horizontal, vertical, geographical). Using one real example from the article, analyse the short-run and long-run effects of this expansion on local markets (rents, supporting services) and evaluate whether government incentives to attract more family offices are justified.

Exam-style question: Define opportunity cost and use the article to illustrate the opportunity cost faced by a family office reducing US exposure to invest more in Hong Kong AI and biotech; quantify (qualitatively) trade-offs and evaluate how uncertainty in US markets influences these decisions.

Ask students to explain, with a labelled demand-and-supply diagram for the stock market, how increased southbound demand shifts the demand curve, show the effect on equilibrium price and traded quantity, and evaluate short-run benefits and costs to existing and new shareholders (use 2–3 short evaluation points).

Set a 10–12 mark question comparing licensing, joint ventures and acquisitions as expansion strategies; require students to use the Innovent–Lilly deal as an example to assess trade-offs in control, risk-sharing, upfront revenue vs. long-term royalties, and likely effects on firm profits and incentives to innovate.

Ask students to explain how strong patent protection affects firms’ incentives to invest in R&D and to license technology abroad, and to evaluate policy trade-offs between protecting IP to encourage innovation versus potential short-term increases in consumer prices (include a welfare diagram showing monopoly pricing and potential dynamic benefits).

Require analysis of how patent-protected monopoly power affects price-setting, consumer surplus and producer surplus in the pharmaceutical market; include an evaluative element asking how firms respond when blockbuster patents expire (e.g., lower prices, increased competition, shifts to licensing) and consequences for welfare.

Ask students to explain how scarcity of developable land in Hong Kong can lead to higher land prices and to evaluate the opportunity cost of allocating land to mass residential development versus alternative uses (e.g., commercial or public use). Provide data (site area, GFA ranges and bid price) and ask for a short written explanation linking scarcity to price signals and allocation efficiency.

Set a two-part question: (a) using a labelled supply and demand diagram for urban land, show and explain how an increase in demand (e.g., renewed developer confidence, mainland bidders) raises equilibrium price; (b) numerical calculation: given the winning bid (HK$1.8bn) and the maximum gross floor area for private residential purposes (23,490 sq m) convert to accommodation value per sq ft and compare with the CBRE valuation range—interpret the result.

Ask students to discuss why clear and transferable property rights (time-limited government grants) encourage investment, including the role of legal tenure in reducing developer risk; include an evaluative part: assess how restrictions (lease length, zoning, GFA limits) might affect bid values and long-run supply of housing.

Design an exam question that asks students to identify the market structure for major property developers, explain features of oligopoly (few firms, strategic bids, potential collusion or competitive tendering), and evaluate how the entry of a mainland developer as winner might change competitive dynamics and prices in the short and long run.

Ask students to evaluate how stronger property rights and reliable dispute resolution (arbitration) affect foreign investment and market outcomes in Hong Kong; include discussion of incentives for suppliers of professional services and welfare effects.

Have students classify the market for international arbitration (justify choice: oligopoly/monopolistic competition), then explain implications for price, quality, entry barriers and how government policies or institutions can shift market power.

Ask students to explain how economies of scale and network externalities can lower average costs and raise demand for Hong Kong's arbitration services, and evaluate potential diseconomies (congestion, higher rents) that could offset benefits.

Prompt a case‑style question where students analyse non‑price barriers (legal systems, cultural differences) to international expansion and assess how professional services (finance, legal, IP protection) reduce those barriers and affect firms' decision to expand.

Ask students to draw supply and demand diagrams showing (a) a leftward supply shift due to an import ban/recall and (b) a simultaneous leftward demand shift from reduced consumer confidence; explain effects on equilibrium price, quantity, and short-run impacts on restaurants and importers. Extend to ask who bears the losses and how elasticity affects price changes.

Define the negative externality and use a welfare diagram to show market failure. Ask students to evaluate regulatory responses (e.g., bans, compulsory testing, closure orders) as corrective measures, their effectiveness, possible unintended consequences (supply shortages, higher black‑market risk), and alternative policies (liability, mandatory labeling).

Ask students to contrast oysters as private goods with food-safety provision as a public good; require explanation of why government regulation (inspections, temporary bans) is warranted, and evaluate trade-offs, opportunity costs and the appropriate level of government intervention.

Give numerical supply and demand schedules or linear curves and ask students to calculate initial and post‑ban consumer and producer surplus, quantify welfare loss (deadweight loss), and discuss how compensation, liability or subsidies might alter outcomes.

Provide a supply-and-demand diagram to show the effect of a sudden increase in demand after celebrity line-up announcements; explain the resulting price and quantity changes, illustrate a shortage if supply (capacity) is fixed, and evaluate whether organisers should raise prices, introduce price discrimination (e.g. VIP tiers), or expand supply.

Ask students to discuss how short-run and long-run average costs would change as the organiser scales from a small local fair to a large three-day international Comic Con, identify specific sources of economies and diseconomies, and assess whether expansion is likely to raise profit margins.

Require an evaluation of the positive and negative externalities created by hosting Comic Con in Hong Kong and ask students to recommend government interventions (e.g. subsidies for organisers, congestion charges, public transport scheduling) discussing efficiency and equity implications.

Have students classify components of the convention (general admission tickets, VIP meet-and-greets, free gallery displays, cultural promotion) as private, club, common-pool or public goods and discuss how classification should shape pricing and provision decisions by organisers or the government.

Ask students to draw labelled supply and demand diagrams showing (a) a rightward shift in supply if finerenone becomes widely used and (b) a rightward demand shift if efficacy increases uptake; explain the effects on equilibrium price, quantity, and consumer/producer welfare in the Hong Kong context.

Set a data-based question asking students to discuss the opportunity cost to society of funding large-scale finerenone trials versus investing the same resources in alternative health services (e.g. public IVF slots), asking for qualitative analysis and a brief numeric illustration using the article's time/cost claims.

Require an evaluative answer: explain how patents, regulation and clinical-trial costs create monopoly power in drug markets, then analyse whether repurposing finerenone could reduce monopoly power and lead to lower prices and greater access for Hong Kong patients.

Provide a diagrammatic and short-calculation question where students show changes in consumer and producer surplus when price falls after finerenone adoption, using the article's reported cost (about 100 yuan per box / ~HK$113 and ~200 yuan per month for participants) as numerical anchors for their estimates.

Ask students to draw supply and demand diagrams: (a) show the effect of a Valentine’s Day demand surge and explain the new equilibrium price and quantity; (b) show the additional impact of a negative supply shock (rain damaging stock) and explain combined effects; (c) use the vendor’s reported 20–30% revenue rise to discuss whether the change likely came from price, quantity, or both (give assumed numbers if calculation required).

Provide students with the Taobao price (about RMB210+11 shipping) and a Flower Market price (e.g. HK$500) and ask them to: (a) calculate the percentage price difference (convert currencies or give HKD equivalents); (b) discuss qualitatively whether demand for Valentine’s roses is likely elastic or inelastic and why (income effect, gift/personal nature, short-run/time sensitivity, availability of close substitutes online); (c) explain implications for seller revenue if local shops raised prices by 10%.

Ask students to explain which features of a market structure fit the flower market and to: (a) draw short-run and long-run diagrams showing how product differentiation can allow short-run profits but attract entry until profits normalize; (b) evaluate how online platforms (Taobao, Pinduoduo) change competitive pressures and what local florists can do (differentiation, service quality) to sustain markup.

Ask students to illustrate with a supply–demand diagram of the motor insurance market how persistent fraudulent claims act as a negative externality (shifting expected-costs curve), explain the resulting deadweight loss, and evaluate two policy responses (e.g. stricter monitoring/penalties vs. claims verification technology) in terms of efficiency and equity.

Provide data-style tasks: give baseline average premium and an estimated percentage increase in expected claim payouts from fraud, ask students to calculate the new premium and explain how the price signal (higher premium) changes behaviour and market outcomes; follow with an evaluative question on possible unintended effects (reduced access, moral hazard, distortionary searching for cheaper cover).

Ask an essay question: explain how weak enforcement of property and contract rights can raise transaction costs and reduce economic activity (use the case), then evaluate reforms (e.g. stronger professional sanctions, tighter oversight of claims, faster legal adjudication) in terms of costs, incentives and feasibility.

Ask students to explain using a diagram how an illegal parked vehicle creates a negative externality, calculate the socially optimal level of enforcement if given marginal private benefit and social cost schedules, and evaluate whether the HK$400 fine (with a given probability of detection) is sufficient as a Pigouvian-style deterrent.

Require students to classify the fire exit lane (public good, private good, common resource or club good) and discuss market failure implications; then evaluate policy solutions (regulation, fines, signage, community monitoring) and their likely effectiveness.

Pose a short essay asking students to explain how clearly defined and enforced property/access rights reduce conflicts over space, compare command-and-control enforcement (fines, towing) with market-based or community solutions (designated loading zones, permit systems), and assess trade-offs in administrative cost and compliance.

Ask students to explain how improved training and supervision can raise labour productivity and reduce error-related costs; include an evaluation question weighing the costs of additional training against expected reductions in disruption costs (use a simple cost–benefit framework or ask for a diagram showing marginal benefit vs marginal cost of training).

Require students to define negative externalities, illustrate the welfare loss from an unexpected shutdown with a supply/demand or marginal social cost diagram, and recommend government interventions (regulation, fines, mandated reporting, enforced maintenance windows) assessing their likely effectiveness and any trade-offs.

Ask students to classify public transport within the private vs public goods framework, discuss positive externalities and why the government may regulate or require higher reliability standards, and evaluate policy options (subsidies, stricter regulation, mandated earlier closures for maintenance) using efficiency and equity arguments.

Ask students to use a labour supply and demand diagram to show how a sustained fall in births would shift the labour supply curve and to analyse short-run and long-run effects on wages, employment and government policy responses (baby bonus, tax allowance). Require evaluation of the likely effectiveness given time lags and labour supply elasticity.

Set a question asking students to assess how increased inward mobility (Top Talent Pass, Quality Migrant Admission Scheme) shifts labour supply in particular sectors and to evaluate impacts on native workers, productivity and wage distribution, distinguishing between temporary and permanent migration effects.

Ask students to explain, with examples, how opportunity cost influences fertility decisions and to evaluate whether cash bonuses and expanded childcare/education subsidies meaningfully lower the opportunity cost; include a short quantitative part (e.g., compare forgone earnings vs HK$20,000 one-off or HK$130,000 annual tax allowances over two years).

Ask students to draw supply and demand diagrams for hotel rooms (or border processing capacity) showing the effect of a 16.12% rise in demand; explain changes in equilibrium price and quantity and evaluate short-run supply-side responses (e.g. extra counters, flexible staff deployment) and their likely effectiveness.

Give students the data (demand +16.12%, room rates +5%, occupancy ~90%) and ask them to use the law of demand and concepts of price elasticity to explain why prices rose and whether revenue for hotels would increase; ask them to infer whether demand for Lunar New Year stays is likely price elastic or inelastic and justify their answer with calculations or reasoning.

Set a short essay/data question asking students to analyse the short-run labour supply options for the Immigration Department and hotels (overtime, temporary hires, redeployment), illustrate effects on labour supply curves or wage costs, and evaluate trade-offs between service quality, staff welfare and fiscal/operational costs.

Ask students to draw supply and demand diagrams showing the effect of a per-unit tax on cigarettes (use the HK$3.3 figure), calculate tax revenue and deadweight loss for a given pre-tax equilibrium, and then discuss how a rise in illicit supply (black market) would alter expected tax revenue and welfare.

Give students hypothetical price elasticities of demand and supply for cigarettes and ask them to calculate tax incidence, percentage change in quantity demanded after the tax increase, and explain qualitatively why more elastic demand or supply would encourage smuggling and small-quantity cross-border imports.

Pose an evaluation question: assess how well higher taxes, stiffer penalties and increased enforcement internalise the negative externalities of smoking, including discussion of unintended consequences (black market, child involvement) and trade-offs between efficiency and enforcement costs.

Ask students to draw and label supply & demand diagrams showing a leftward shift in demand for raw oysters after public warnings; explain effects on equilibrium price and quantity, and ask for short evaluation of how supply suspensions (temporary supply restriction) would interact with the demand fall.

Provide a numerical exercise: given an initial price, quantity and an estimated price elasticity of demand for raw oysters, calculate the change in total revenue after a 20% fall in demand (or a 15% price drop), and evaluate whether restaurants should lower prices or focus on marketing cooked alternatives.

Require students to illustrate private vs social marginal cost curves for oyster supply, show deadweight loss from unregulated contamination, and evaluate policy instruments (mandatory testing/regulation, supplier suspensions, liability rules, Pigouvian tax/subsidy, public advisories) in terms of effectiveness and equity for Hong Kong.

Ask students to explain how weakening/uncertainty of private property rights can affect foreign direct investment and firm behaviour; include an evaluation part requiring diagrams or examples showing effects on expected returns, opportunity cost of capital and long‑run supply of port services.

Require students to identify the market structure formed by an exclusive port concession, draw and analyse the impact on price, output and consumer/producer surplus, and evaluate welfare implications and possible regulatory responses.

Pose a question asking students to list and explain the sources of monopoly power present in the case, assess whether the monopoly is likely to be efficient or harmful, and suggest policy measures (e.g. contestability, regulation, re-tendering) with justification.

Give students data (e.g., adult ticket from HK$205 to HK$88 and an observed change in quantity demanded) and ask them to calculate the price elasticity of demand, state whether demand is elastic/inelastic, and evaluate the impact of the discount on total revenue and on retail/dining revenue (short answer with calculations and diagram).

Ask students to draw demand diagrams showing (a) the expected movement along the demand curve when price falls, and (b) a leftward shift in demand due to frequent service suspensions; require explanation of why discounts may fail to raise ridership and evaluate relative importance of price vs non‑price factors.

Ask students to classify the operator’s strategy (horizontal expansion, product differentiation, or diversification), discuss potential short‑run and long‑run costs and benefits (including economies/diseconomies of scale and scope), and evaluate whether this expansion is likely to increase profitability given weather risks and reliability issues.

Ask students to evaluate how greater student and internship mobility (short-term and permanent) affects Hong Kong’s labour supply, wages and skill composition — include diagram(s) showing shifts in labour supply and discuss potential brain gain vs brain drain.

Require students to explain how UGC subsidies and non-local learning experiences raise labour productivity (use a production function or PPF/AS-AD intuition) and assess implications for firms’ costs, competitiveness and long‑run economic output.

Set a policy-evaluation question: illustrate the market failure using a diagram for education with positive externalities, explain how a subsidy (UGC HK$100m scheme) corrects under-provision, and evaluate strengths and limitations of this intervention.

Ask students to explain and illustrate with a diagram how an increase in emigration from Hong Kong and immigration to the UK affects labour supply curves in both locations; evaluate short-run vs long-run effects on wages, employment and sectoral labour shortages using given numerical estimates (e.g. 26,000 expected arrivals, 170,000 already moved).

Set a quantitative question where students calculate the impact on equilibrium wage in a simple labour market model after a specified percentage fall in Hong Kong's labour supply (use provided visa/migration numbers as data); include discussion of selection effects (income/English requirements) on who migrates and how that changes the quality/composition of labour supply.

Require an evaluative essay: identify positive and negative externalities of the BN(O) policy for Hong Kong and the UK, use examples (e.g. loss of journalists/finance workers, remittances, skills transfer), and recommend government interventions (subsidies, training, retention measures or integration policies) discussing their likely effectiveness and trade-offs.