Content A. Basic Economics Concepts BnesaR B. Production =z ©. Demand & Supply FDRBUREE D. Business World RoR E. Banking System STR F. Government RH G. International Trade BRA H. Aggregate demand & supply @ARAUR I. Elective | : Monopoly, Price discrimination, Anti-competitive practices Ei: BEAK RAST J. Elective II: Production Possibilities Frontier, Consumption Possibilities Frontier Human Development Index SEREDIREHM » ARID BE HAE + ABBRER ® © by Herman Yeung Economics Team P.1 cs www. youtube.com/hyhermanyeungPriel SUC bse} Scarcity #1) te Available resources are insufficient to satisfy all unlimited human wants. TA RRA RI ROH RRM ABUL © © rich people also face scarcity ASL AAR da Shab JE © scarcity > choices, sacrifice, trade-off #4 > BAR > Ast + BUR 2. Opportunity cost #e # ke AR * Highest-valued option forgone #& #3858 } (8A HA ° eg, I choice; CU BBA 2™ choice: UST Physics 3" choice: HKU Medicine Buying vs. using vs. Fi Practice PP//Q2 2012/02 2013102 2013/1 09e 201401 2014101 20151102 2015/1 O1b ® © by Herman Yeung Economics Team P.2 cs www. youtube.com/hyhermanyeung3. Three Basic economic problems What to produce fr ? Economics lesson 4. How to produce 40474 @ 2 Upload to Youtube 445] Youtube For whom to produce ie? Students $b SRM: © = Traditional economy 4 #48395 social customs # # 8 4 © Planned / command economy + #] 48.35/43 41448; government #4} © Market economy 73%) 48% market mechanism 7 35 #441 Private property right 4437 AH (1) the exclusive right to use 454 448 FLA (2) the exclusive right to derive income $k A.84 $847 H (3) the exclusive right to transfer #384945 4 48 2013101 2014104 2015103 2013/1 2a 4 ‘onsumer goods, producer goods My Sty > 1 EAE Se Consumer goods: used for direct consumption Producer goods: used for further production (2% capital goods) Wath’: Ga aR SAHND: AR -FLA (RS PAWB) ® © by Herman Yeung Economics Team www. youtube.com/hyhermanyeungPUTO Ce Vibe hod 5. Primary, secondary roduction 47.4% » =k AR » Primary production 4% 2 : provide raw materials 40+ Secondary production a+b A: producer goods, consumer goods + tds 18 $A so Tertiary production 2#-t services ei Practice PPT.O4 20141010 20151023 201511 Q2a 6. Economies goods, free goods #8 #44) 5 > Ay Bo Economics goods: © _ produced from scarce resources with other alternative uses © quantity demanded > quantity supplied at price equal to 0 Free goods: © no need to use scarce resources to produce it © quantity demanded < quantity supplied at price equal to 0 ABH ae O BTA MR TREE © ERRG ELE > ARE KW At Se: 0 KENMDTTREE © ERRG ELE < ARE Practice PPL 2012/01 2013/11/96 2014103 2015 ® © by Herman Yeung Economics Team P.4 cs www. youtube.com/hyhermanyeung7. Public goods, private goods so > oe Private goods ; rival in consumption, a person’s consumption will reduce the amount available to others. RL Rs A RY LAT SE RE Public goods: _non-rival in consumption, a person’s consumption will not reduce the amount available to others, TERE RA DAT MY AT SA oS sae Practice PPIVQUb 2012104 2013106 2015 lait 8. Positive vs. Normative statement $f 284 $252 S004 Bie att Positive statement : Fact RARE EE Normative statement : Solution AURAL HR 20121Q1 20151Q1 9. Social vs. private vs. external #4 {fF » #4 A » Social Cost #£ # iA = Private Cost 44 A sk AR + External Cost Fk 9b sh aS Social Benefit #£¢4] 2 = Private Benefit #A4]2 + External Benefit 4} #1 23. 20131020 20141018 20141019 20151017 ® © by Herman Yeung Economics Team P.5 cs www. youtube.com/hyhermanyeung1. Factor of production 4 ie Retum @ 4K Capital # & (man-made resource A x. ¥ iff.) interest #1,& Land 448 (natural resource % #8 Hi) rent #24 Labour #2. (human resource AJ) # i) wage 2 Entrepreneurship 2% ZAKS, (risk-bearing, decision making) profit 41:34 (RR AGE 20141 2a 2. Interest 4 & HE 4 give cost for the earlier availability of resource 3-49-51 #4) RAR © unexpected inflation or deflation problem 353 28 Mi 28 #8 B88 © icreceive premium for deferring consumption 3g Practice PP'/}Q3 Practice PPAVOL 2012/03 ® © by Herman Yeung Economics Team P.6 cs www. youtube.com/hyhermanyeung3. Wage Payment method Piece rate #44 3+ Time rate #8 853+ ooo Basic Salary + Commission, Basic Salary + Profit-sharing Ma + ARG + RA + hee working incentive = ff 4 8 quality maintaining #4) 4R45 cost of supervision 7 AL income stability A482 HE risk-bearing BURR cost of counting output 3+ @ Hh 4) BA Practice PP} Q6 2012107 20131107 2013/1106 2015106 ® © by Herman Yeung Economics Team P.7 os www. youtube.com/hyhermanyeung4. Mobility of Labour #2 © Occupational mobility Hi 84k = ease to change occupation em $6) & HL © Geographical mobility 3858 31 854 = ease to change location of work PF s8ba5 Hy Method to increase mobility 3% 40 os © lower the barrier FE A&E 2012105 20140 20151 Q10e 2013/Il' Ola, bi 2015104 ® © by Herman Yeung Economics Team P.8 cs www. youtube.com/hyhermanyeung5. Unemployment rate & 3 # Employed population Total labour force Hf) A@ Unemployed population:& # A. 2 Total labour force H) Aa Underemployed populationst 7% @ AT Total labour force# # Ao Employment rate #% # = Unemployment rate # # = x 100% Underemployment rate#h # 7% X= 100% Practice PPVO6 2012/1024 2013/1 QUIbiti 2015105 Total labour force #8) AD © > IS years old #828 15 8 © skip full-time housewives, full-time students, permanently disabled, retired do REM. PRB + RATA > IRR Labour supply 77 #8 =Total labour hour #48 Unemployed population & AT © > 1Syears old A838 15 © willing and able to work EAA fH © seeking work FART P Underemployed population %# FRAT © > 1Syears old A838 15 © — < 35 hours working in 7 days 7 8 Af PY 35 oN 8E © seeking additional work $2% 8 $ a) 46 2012106 2014109 ® © by Herman Yeung Economics Team P.9 cs www. youtube.com/hyhermanyeungBH 6. Labour Productivity $= Labour Productivity $4 4 . - Labour hour 1. 20121010 2015106 Unit produced & th tt 7. Division of Labour 444 + imple #9. focus on 1 product or service PAG A So HHA Complex ##: focus on 1 production process 4 #40 & #857 Regional © 3%: different regional focus on different product or service APOE HKG] 09 A ST Increase labour productivity 3% 4a 9 A A © ensure right person for the right job "THA shah AMM RE © Practice makes perfect AS © Less training time mB © Less time for changing job FR Hp a OF Disadvantage for labour 4 #38 8 © boring A @ = higher risk of unemployment RRARR © occupational disease rr Limitation FR 4] © size of market #55 A/s © possibility of trade & 49 1 TH © specific career 4H veg. singer HF Practice PPV QUa 20131 Q10a ® © by Herman Yeung Economics Team P.10 cs www. youtube.com/hyhermanyeung8. Marginal diminishing return & Economies of scale RARE ALPE ART: Short run 4499 : fixed + variable factors QRLRAK + TRADE Long run {3 all variable factors REAR TR Law of marginal diminishing return 4K 26 8 48 In short run, variable factors increase, the marginal product finally decreases WM: TRAARRLG: ERASE Practice PPS 2012/02 2014105 201411026 2015109 (Internal / External) (Economies / Diseconomies) of scale (P3/#}) 88 RL AK( 848% Internal P98 : 1 firm expand — fi] 23) He External #h88 : whole industry expand £48 ff BH 2013104 2013105 201511 02b ® © by Herman Yeung Economics Team P.11 cs www. youtube.com/hyhermanyeungConsumer 38% A B iG D E F G H I J K $55_| $50 | $45 | $40 | $35 | $30 | $25 | $20 | S15 | $10 | $5 aa ngs SE Demand Curve ERR ‘usm of Cride Oil bare) AE) ® © by Herman Yeung Economics Team P.12 www. youtube.com/hyhermanyeungPrem eye} Vit 2. Supply of Crude Oil J it #48 * Producer # @ HL LAM) HN | HO] HP | HO] AR| HS) HAT) AU RV $s | $10 | $15 | $20 | $25 | $30 | $35 | S40 | S45 | $50 | S55 ——*~—~aX—— SHAR a AR Crude Oil ih | Supply Curve A PB ab (usm of Cride Oil bare) EE) ® © by Herman Yeung Economics Team P.13 www. youtube.com/hyhermanyeungConsumer 34 #4: (eae Be Cee re eee eee ae ery I aes s5s_| sso | $45 | s4o | $35 | s30 | $25 | s20 | sis | $10 | 85 — HRA PHAR OA Producer # @ 4 + HL|HM|HN| HO] HP | HO] AR] HS | AT) HU! AV $5_| sio | $15 | $20 | $25 | s30 | $35 | sao | sas | $50 | $55 OO BA HR A Crude Oil ei Supply Curve I oh ait () Demand Curve Rah (usm of Crd Oi hare) AE ee SE Ci) ® © by Herman Yeung Economics Team P.14 cs www. youtube.com/hyhermanyeungPOR So mm bts 4. Consumer surplus 34 # 25 #e Consumer H#4 | A | Bl C | D feze Ge | ere rae | eae ek ob Ba sss | sso | sas | sao | $35 | $30 | $25 | $20 | sis | sio | $5 FRE $30 Consumer surplus RH $25 | $20 | $15 | $10] $5 | so HR BR Supply Curve ie ME wh 0 4s = 0 2 35 = Demand Curve Skoe (Quantity of Crude Oi hare) Ee) PS, number of consumers Hf RAMA HK consumer surplus 5 $44 ALA ASG % aiy dah 2012014 ® © by Herman Yeung Economics Team P.15 cs www. youtube.com/hyhermanyeungPrem eye} Vit 5. Producer surplus + # 4 & Producer 24 | #L [HM HN| Ol HP | HO|HR[ HS| HT] HU] HV SARA $5 $10 | $15 | $20 | $25 | $30 | $35 | $40 | $45 | $50 | $55 ee Producer surplus AREA $25 | $20 | $15 | $10 $5 $0 SA BHR Crude Oil it Supply Curve 7 EI wh A x0 4s zw Zo = Demand Curve Skoe (Quantity of Crude Oi hare) Ee) PS. - number of producer % 48.4 4%.» producer surplus + AAA MG ¥ Babe wah 6. Social surplus # @ % #& Social surplus = Consumer surplus + Producer surplus EGR = HRM + BARB Practice PPW/Q12—__-Practice PPI? 2012109 2013103 2014106 20151022 ® © by Herman Yeung Economics Team 6 cs www. youtube.com/hyhermanyeungPrem eye} Vit 7. Change in Demand _#% -R 2k 8% Reason B) = o Price of substitutes increase AREA Lat (eg. Price of coal increase #18 4+) Price of complements decrease HEB BAG FE (eg. Price of car decrease B48-F FE) Future price expectation increase ARIE LBL at (eg. Crude oil’s future price increase 38 AAS LAH) Reason AB) = o Price of substitutes decrease PARAS FE (e.g. Price of coal decrease 318 F #&) Price of complements increase ARDS L I (e.g. Price of car increase #48 _L #F) Future price expectation decrease AARSB LB F FE (eg. Crude oil’s future price decrease Sar RAS FE) 2012 O12€ 2013/11 02b 2 Price 18 (8) usmtty of Crude OF are) AE SE (5) Crude Oil i 50 45 0 0 —_— (Quantity of Crude Oi are) Eb AK IE (8) ® © by Herman Yeung Economics Team 7 cs www. youtube.com/hyhermanyeungPrice 8 (8) Price A (8) ss e 20 i 10 0 POR So mm bts 7. Change in Demand Other reasons #488 Bl © Income increase HAL (e.g BLP AS) Lobster #388 » — D, Te ae McDonal ny D, > Quantity of Lobster Ri © Income decrease LAF FE (e.g. ALA ABE) Lobster i #% me OS) Cusmtiy of McDonald meal $5 4A McDonald 4 3 t D, 4s ~—_ 7 Dd, D, i T2343 6 7 8 9 Quantity of Lobster Ra RE Inferior Goods 4 4 4d McDonald 4 4 4 Superior Goods (& # 4nd : Lobster #25 S > Cusitiy of McDonald meal $6 REALE ® © by Herman Yeung Economics Team P.18 www. youtube.com/hyhermanyeung D,POR So mm bts 7. Change in Demand ed Other reasons 4&8 Bl © Population increase AWE Ff (e.g. #8 4F 2K MR) Playgroup 4s 25s = > — z% 7 5 w D, 4 D, OTIS oT Playgroup Enrstinent A playgroup 2014/11/00 © Derived demand #725 Playgroup’s demand increase > demand of playgroup’s material increase Playgroup & &£4 > Playgroup Fi #44 BRL A 20141012 © Joint demand Ha i-phone’s demand increase > demand of case of iphone increase FRERLA D> FRRMERE A © Environmental factor 3%, 4 Summer § & > demand of air-conditioner increase + 4% RL At 201311010 20151015 ® © by Herman Yeung Economics Team P.19 cs www. youtube.com/hyhermanyeungPrem eye} Vit 8. Change in Supply #8 2 9% Reason = © Price of joint supply increase Crude Oil (eg. price of paraffin oil increase) t 5 HR A OL LA ss : (eg. BiH EF) 30 © Technology improvement g ° (e.g. improve extraction technology)2 45 Zi, HRS 30 (eg. MaktR ATER) zs © Expect future price decrease : A RAT AS TIF FE 0 (e.g. Crude oil’s future price decreases Sh LAF FE) © Discover new oil deposits unt of ude Oi bat) AH ALI CH) RR HH Crude Oil © Price of joint supply decrease ' (e.g. price of paraffin oil decrease) BASE BEB ASF BE 50 (eg. BAUS) © Natural disaster A$ (e.g. Earthquake occur near the oil deposits sas Si Mt ii Ht B8kb BL) © Expect future price increase 20 AAAS BOB LE 8 (eg. Crude oil’s future price increase Mra EA) | eae Cae / eae alot amity of Crude Oil art) 8 RE (8) ® © by Herman Yeung Economics Team 0 cs www. youtube.com/hyhermanyeungPrem eye} Vit 8. Change in Supply (#9 2 # > Other reasons #488 Bl Farmland 3 o Price of competitive supply increase (e.g. rental income of factory increase) REO EA (eg Lae EP) 20151046 Quantity of Farmland (m square) BACH A) Lower market entry barrier FE APTI (e.g. increase the long-distance call Service Licenses) (eg. FRR RAG EAR) Practice PPT.QI0 20121013 2013101 20131012 a 20141014 TDD service (hour) fab ABULACNaHY 2015114 ® © by Herman Yeung Economics Team www. youtube.com/hyhermanyeungPrem eye} Vit 9. Description #3 % Goods A ff A Demand increase Quantity supply increase Price increase from P, to P, Quantity transacted increase from Q, to Q, Pp P. i , HER AEH OQ, HE OQ, 2, © uaaty 8 joods A ff Ay A Demand decrease D, Quantity supply decrease Price decrease from P, to P, Quantity transacted decrease from Q, to Q, Soe ooo BRE SUR ET Ie Hie PL REP, MLE O, KE O, phe----e 1 ! ! Q 2 Quant 8 ® © by Herman Yeung Economics Team 2 cs www. youtube.com/hyhermanyeungPrem eye} Vit 9. Description #3 % Goods 4 {44 A Supply increase Quantity demand increase Price decrease from P, to P, Quantity transacted increase from Q, to Q, F PB eit Bish PE P, RLHb OQ, HE, uaaty 8 Goods 4 {4 4 Supply decrease Quantity demand decrease Price increase from P, to P Quantity transacted decrease from Q, to Q, Pp ep ERSTE Biba PEP, REG O, KE O, o 2, Quantity ® © by Herman Yeung Economics Team 3 cs www. youtube.com/hyhermanyeung10. Price ela: Prem eye} ity of demand (Calculation change in Quantity demanded change in Quantity demanded ity demanded _ change in Price Qui Price ange in Price __ change in Quantity demanded change in Price PL+P, 9 10415 15-10 10+9 Inelastic demand 48384 5 < 19 mrscees PAS RR REAR es BAS 2 US Price BREA Quantity demanded GEAR ERE Price 18 (8) Crude Oil ids Demand Curve eh oa TT Quantity of Crude Oi hare) Es KE C8) ® © by Herman Yeung Economics Team 4 cs www. youtube.com/hyhermanyeungelasticity of demand © Elastic demand %# Pp i | oO LI-I, PY, Total revenue sy A F PY, Total revenue 44 AL © Inelastic demand 48381 & AK P Pa +0 +0 PY, Total revenue sk AY P?, Total revenue suc A T © Unitary elastic demand #34 HK P. P Q Q PY or %, Total revenue unchanged 4H A 7 9% ® © by Herman Yeung Economics Team www. youtube.com/hyhermanyeungelasticity of demand © Perfectly elastic demand % 23R4E HK E,>% ee L____,o RARER EF © Perfectly inelastic demand 3, TR ® © by Herman Yeung Economics Team 6 cs www. youtube.com/hyhermanyeung11. Price elasticity of demand (Factor) Factor affecting Price elasticity of demand & £ (His FRE AY EA A © Availability of substitutes #48 34477 4] AE, e.g. lunch vs. CNBlue’s concert 4+ #€ vs. CNBlue 3®°% & e e.g. newspaper vs. realestate 4R#K vs. BALA, © Degree of necessity FLAK eg. electricity vs. jewelry TA vs RK © Duration 2548841) © Brand loyalty ee. 3% @ Durable tm tt Practice PPIVQ3 201200 20121012 2013/11 09a 20141013 201510 2015/1 Olle ® © by Herman Yeung Economics Team P.27 cs www. youtube.com/hyhermanyeungCOM Ue am bri 12. Price elasticity of supply (Calculation) (#5 % change in Quantity supplied — 4.8 ek BB % change in Price SADE ange in Quantity supplied #95 3 288 Quantity supplied BE change in Price BAG Price 1 i, ~ Shange in Quantity supplied Price CREAR “ change in Price Quantity supplied = EASA HA Is, PL +P, P,-P, Qs, +Os, ® © by Herman Yeung Economics Team P.28 cs www. youtube.com/hyhermanyeungPOR So mm bts ¢ elasticity of su Type) 2/618 H538-b Crude OiL§. Supply Curve BEG oh 8 “10-5 E 0 45+40 _ 17 il ae 40 11410 21 Inelastic supply 438-4 68 Tao unt of Crude Oi are) a IE (88) pee 55-55 Perfectly elastic supply % 2312 08, 7-7 15+10 15-10 747 Perfectly inelastic supply 3 27447 4 (eg. tunnel 8&8) ® © by Herman Yeung Economics Team P.29 cs www. youtube.com/hyhermanyeungPOR So mm bts y of supply (Factor) ##. Be (A ing Price elasticity of supply AGAR BA © Availability of raw materials HHH) T #1 AE e.g. tunnel vs. accounting service B&i8 vs. @ 3} ARH © Complexity of production + A ALA e.g, safeguard vs. spaceship (83 vs. AXA © Mobility of factors Aah aH te eg. oka © Inventories # 6 e.g, Just-in-time (JIT) © Excess Production Capacity sa ii) Practice PPO ® © by Herman Yeung Economics Team P.30 cs www. youtube.com/hyhermanyeungPrem eye} Vit 15, Market Intervention 735-74 + © Effective Price ceiling #7 2/144 ML (By Law ik42 9) Pe Public housing 2% Ss p|----> P| Effective Price ceiling 42/48 EMR ? ao E After setting effective price ceiling By AG AS ERE HR Price decrease from P, to P Wied PREP, Quantity transacted decrease from Q, to 0, RH O, KE O, Total revenue decrease from P,xQ, to P.xQ, Midd P,xO, KE P. xO, Market change from equilibrium to shortage 35 da 4) 487 98 ALAR > @ non-price competition 41H 45 38 $ (a) First-come-first-served $0.8] 3.47 (b) Seller's preference #344 (©) Degree ofneed #2 © Black market (e.g. touts 4%) 20151013 ® © by Herman Yeung Economics Team www. youtube.com/hyhermanyeungPrem eye} Vit 15, Market Intervention 735-74 + © Effective Price ceiling #7 2/144 ML (By Law ik42 9) P_ Public housing 2% Ss Effective Price ceiling 4 218451 FR Excess demand i844 Consumer's surplus 54 4 Bee: THAR TBR / Xe Public housing 2 ee Public housing 2. Deadweight loss , ST ARK a D 2 oo 7 a oO 2 Producer’s surplus decrease + a 4H #2-F Practice PPIVQ4 Practice PPAVQI2a 2012/10/05a, 2014015 201411021 201511019 ® © by Herman Yeung Economics Team 2 cs www. youtube.com/hyhermanyeungPrem eye} Vit 15, Market Intervention 735-74 + Deadweight loss 2k #43 % loss in total social surplus or potential gains not fully captured when marginal benefit does not equal marginal cost SPAT fo FR A 8 FSS] FRYE BOR OAR RPAMAREREES AR © @ Effective Price floor 4 2(145-F RR (By Law ik 429) Pe Minimum wage #4 % Ss Effective Price floor #84 4°F Me i D, L771 {SP oO ¢ After setting effective price floor ARIAS TAGE SR Price increase from P, 10 B Bid PER Quantity transacted decrease from Q, to Q, RHE O, KE O, Total revenue change from P,xQ, to Px hh P.O, BA Px, (*) Market change from equilibrium to surplus (*) Elastic demand 3 PxQ, P xO Practice PP-/}Q19 ® © by Herman Yeung Economics Team 3 cs www. youtube.com/hyhermanyeungCOM Ue am bri 15. Market Intervention 7735 F 74 + © Ineffective Price ceiling 2 (45 LM or Ineffective Price floor 24548 -F FR Pe Ineffective Price ceiling 2k 45/841. Ineffective Price floor 48 2t 0) (it 48°F MR 0. No effect to the market. BA RE Price and quantity transacted unchanged. (45 2 1, 8 76 42 ® © by Herman Yeung Economics Team 4 cs www. youtube.com/hyhermanyeungPrem eye} Vit 15, Market Intervention 735-74 + © Effective Quota 4 2824 (By Law 49.2) Effective Quota #2823 Ss P oO : After setting effective quota RRRA UR Price increase from P, to P, ish Pre P Quantity transacted decrease from Q, to 0, RH O, KE O, Total revenue change from P,Q, to P.xQ, Mikd P,xQ, BA PxQ, (*) Market change from equilibrium to surplus 3 35 #98 a3 (*) Elastic demand HIRE SR: Rx, 1 1 Quanity of rad bare) AE ‘Quanity of Cate OH bare RL (HH) E,O>0>0 When company go bankruptcy, who claim first? 25] RA + TAA EIS? HRA D RTA DR AA DO AMR D BAAR Liquidator > employee & government > debenture owner > preferred shareholders > ordinary shareholders Practice PP/Q7 2012108 2012/1 Q10aii 2012/1 Q12b 2013109 2014107 2014108 201411 Q106,d 2015107 2015/1 9a ® © by Herman Yeung Economics Team www. youtube.com/hyhermanyeungEUR ME ta! 2. Company Expansion 2 4] #% if © Horizontal expansi (same types of goods) economies of scale integration increase market share more influence on market price © Vertical expansion / integration (Backward) (previous stage of production) economies of scale ensure a steady supply of raw material © Vertical expansion / integration (Forward) (next stage of production) economies of scale ensure enough outlet © Lateral expansion / integration (related but not directly competitive product) economies of scale = product diversification = tisk diversification © Conglomerate expansion / integration (unrelated business fields) = economies of scale = product diversification Practice PPIVQ2 2012/03 2013108 2014104 2015108 2015/11 9b aR | Oo (4a 1485804 A) Wah FAO BAG A RANT ROE ED BRR | Ott (hea) (ih 48) APR) PALE ERO AB MORI | St Cite) (18) ALPE) RARER RAR I 0 AW BHR | i (49 12 78 BO A) RAE ABS Tele DHL RB BIR | tt CR 4a O94 BR) ARAL PLR ® © by Herman Yeung Economics Team www. youtube.com/hyhermanyeungEUR ME ta! 3. Market Structure 73% 45 4 @ Monopoly (1 seller) Re (118% © Oligopoly (few sellers) RRA (YH © —Monopolistic competition (many sellers) BRUM (F KF) © Perfect competition (many sellers) KEBRE (515 Entry barier APH =O = @ < © < O Heterogeneous # #: 0, @, © Homogeneous goods F # $f sb: © formation 4 HAN: ©, @,© — Perfect information ZAHM: © Imperteet Practice PPV QUe 20121018 201411 Q2e 201511020 HRB Heterogeneous goods # $f 35 © Oligopoly Imperfect information #2 HM - — High barriers to entry JF #8 ho A - — Price-setters 48-4 — (Cartel 44 Hi) = Non-price competition JE (8 45:38 = Interdependence of policies Jeb 42% % (Game Theory ## 4838) 2012/1 Q 12a 201410 2015/1 09e ® © by Herman Yeung Economics Team www. youtube.com/hyhermanyeung- Homogeneous goods Ff SF ~ Perfect information % 4 #28 - Free entry and exist & wy ho AiR #7735 - All firms have a relative small market share Pf 4 2] 4 W316 AH HAL - Allfirms are price-takers #47 2 a) Ay 2 P Individual 48 A P Market 7 4% Practice PP/Q16 201310 2013/01 2015105 ® © by Herman Yeung Economics Team P.48 cs www. youtube.com/hyhermanyeungED Ry Ue if E, 1. Money 4% _vs. barter econom: Function 34% © Medium of exchange 2% #ksr : 1 RF He 100 1 i Rte. 1&4 + 100 fa © Standard of deferred payment 569 X44) 48% {8 1010 HR AE LHR» RR RAAT BE AER HY © Store of value life 4 FM) S FM 100 AR» 1248 He Se » 1a fee aR RAR)? @ Unit of account Practice PPIVO8 2014102 20151035 Requirement && Generally accepted # i 4% Homogeneous 5) (2 454% Portable 7 18.38 Durable tf Divisible 1441 Scarce #4 @00000 Practice PP'/029 2012/1107 ® © by Herman Yeung Economics Team www. youtube.com/hyhermanyeung© (CREAR) Legal tender (notes and coins) in public RP © Licensed banks #824247 (>HKSO) Demand deposit 7% #9 774k. Saving deposit 4% & 4 4k, Time deposit ZH 474K, Negotiable certificate of deposit TR 3R 4F 438 Restricted license bank 7 FR #J ME FASR4T (2HKS5SO %) Time deposit Zi 4.4%, Negotiable certificate of deposit =F #84R4F HAE » 348 A) Deposit-taking companies #42324] ([HKS1O % + & Time deposit 21424, Negotiable certificate of deposit *T HARARE Money Suppl AE IB mM Co M2 122 MB Practice P1028 20121028 2013/1025 20141031 20151030 ® © by Herman Yeung Economics Team P.50 cs www. youtube.com/hyhermanyeungEET Ue ib 3. Central Bank _*? 4B 47 * © Issue currency HSBC, SCB, BoC, HKMA ey BM. his PR SEH Bank ussi0 sett Certificate of indebtedness ARES issue #47 HK$78 (notes or coins) 4.45 32k @ Government Bank : HSBC, BoC, HKMA BREA RRAT BR. eR SER © Supervising authorized institutions: ©» HKMA GER ER © Lender of last resort HKMA RRNA (discount rate 45324 vs. Hong Kong Interbank Offered Rate HIBOR 48-47 6] #46.) © Central clearing house The Hong Kong Interbank Clearing Ltd PRE SBR ESLARDA @ Manage and invest Exchange fund: The Exchange Fund under HKMA. RAL Sh EK 201211029 ® © by Herman Yeung Economics Team P.51 cs www. youtube.com/hyhermanyeungED Ry Ue if E, 4. Banking Multiplier_4R 47 4 #4 Balance sheet of Banking system S247 #8 A 3 AL A (HA (Legatresrvernio Bee 62 HLF =20%%) Asset 1" deposit # 44k = $100 Reserve 84% Loan Asset 1" loan # RAL = $80 Reserve if Loan 4k Asset 2" deposit # 2 RAE = $80 leposit % ae $i Reserve ‘ Loan $4 Asset 2" loan 2 kis =$64 — Reserve #4 4 Loan 4k Asset 3" deposit Jf 3 -k4Psk = Sod se Reserve i 4% @ Loan $¢.4& Asset 3" loan 3 3 kik4k = $51.2 Reserve #4 4 Loan 4k Asset After 0" 0 Rig Reserve $8 4it Loan 4k Maximum deposit ik A## Maximum banking multipler 3k ASR AT ARM RA $100 30 RA $20 $80 RA $100 $80 $36 $144 $100 $144 $48.8 $195.2 $100 $400 100 +100 x 0.8+100x0.8* + (#) Excess reserve #3 4% fit 4 = 100-180 x 0.2 = $64 1 Liabilities & ti Deposit ##4& $100 Liabilities & ti Deposit ##4k $100 Liabilities & ti Deposit ##4& $180 Liabilities & ti Deposit ##4& $180 Liabilities & ti Deposit ##4& $244 Liabilities ti Deposit ##4k $244 Liabilities & ti Deposit ##4k $500 = 100 __ s500 08 1 Reserve ratio f# (i i (@) Actual banking multiplier WRAL ALA = 755 = 2.44 244 } © by Herman Yeung Economics Team P.52 Gi www. youtube.com/hyhermanyeung4. Banking Multiplier_4R 47 4 #4 Practice PP'1Q27 2012102) 2012/11 Q13a,b ® © by Herman Yeung Economics Team P.53 cs www. youtube.com/hyhermanyeungEET Ue ib 5. Money demand & su Monetary base = reserve + cash in circulation fF 3kot= 4H + ALI SEE deposit + cash in circulation Sf EM = ek + Hie Money suppl Practice PPI QI4a,b 20131026 2013/1 Q12a,b 20141030 20141033 20151029 2015/1032 Increase Money demand _{f 4% Eft © increase in real national income 3 FEB Rik AE fF © initial public offering (IPO) ®AR LY © bugs in electronic trading platform EF HFS H IVI se Money supply _ ff In © decrease the minimum reserve ratio i (S8 fh Ue °F © central bank open market purchase of government bonds PRITAM A RAR > cash held by non-bank public increase 2 #45 47 32 &L At x Interest rate 4! Quantity of money & 4S Practice PP'/(Q Practice PP'}Q26 201211030 2012111 201311027 20131030 201410 12a,b 20151028 20151006 ® © by Herman Yeung Economics Team P.54 cs www. youtube.com/hyhermanyeung6. Quantit theory of money KE MV = PY = nominal output 4 & 2 th M-= money supply +42 velocity of money circulation $128. P= general price level — AR BLAS FE Y=real output $% H 4 us Short run_43.38 Assume Vis constant at VRB Practice PP'1Q33 Practice PPV QI4e 2012 013d 20131032 20141037 2015/1033 Long run 3) (Classical 38 $3 Assume V, Y is constant ti YAM ® © by Herman Yeung Economics Team P.55 cs www. youtube.com/hyhermanyeungCe Ta) 1. Formula 2A Gross domestic product 1/9 44 A {ff vs. Gross national product BR. a sf Location 4a (12 4a A) Nationality 9 4 20120 10ai, 2015/1 09d © GDP=C+I+G+X-M GNP = GDP ~ #38948 + Sh Bab. © GDP=R+W+I+P+D+T-S net factor income from abroad ARONA A Practice PP'VQ21 Practice PP'ILQS5 20131Q21 2015 1Q24 2015 TVO10a C:: private consumption #4 A38 # 1: Investment = capital formation + net increase in inventories RA -— RAD + BHR (Capital formation = Gross domestic fixed capital formation = Net domestic fixed capital formation + depreciation RAG MR — ALARRAV RAR — ODT RAD RIM + HH) G: Government expenditure 3 #7) & X: Export 4} 2 = domestic export + re-export Aseuj 2 + Ho M: Import AD 20131022 R: Rent ae W: Wage # Interest 41.8 Profit #13 Indirect Tax Bid8#2, Subsidy #5 wave ® © by Herman Yeung Economics Team P.56 cs www. youtube.com/hyhermanyeung1 © Expenditure approach 4h +f 363% © Income approach Ast Ek © Value-added approach if fo it Hitt JE 20141024 20141 Ub At factor cost 4s A: deduct tax add subsidy 3 4.403% Price index at base period 3&5: 7748 Price index at current period 2 5 7¥ fit pita 34 : He Population size Aw Real PE: RK Per- Practice PP'1}Q20 Practice PP'1Q22 2012/1022 2012/1023 20141025 20141026 20151025 ® © by Herman Yeung Economics Team P.57 cs www. youtube.com/hyhermanyeung2. Government revenue i Jf Yk Direct tax HAAR (45% 8187 M8 HAF A] A) (tax burden cannot be shifted to others) © Salary tax #442 Basic allowance 4&4 #424 : $120 000 Net chargeable income MARRA SIA Tax rate HH First $40.00 #% $4000 % Next $40 000 -& $40 000 a Next $40 000 =k $40 000 Remainder #4 Or standard rate AAA = 15% @ Profit tax AAPA | 15% or 16.5% © Property tax #4 : 15% (Proportional tax_té ts] 42) © Estate duty ata Indirect tax PAR#2 (#251 8 48 TA HEB] A) (tax burden can be shifted to others) © Rates £4 - estimated annual rental value £38 2 #48 48 x 5% © Stamp duty 7 42 (Regress (BSD ~ Buyer's Stamp Duty HAAR A AMALR 15% A) (SSD ~ Special Stamp Duty Uh Ep 76.42 — 24 6 eps AMAR S RA) © Land departure tax PEBSMIE AL (Regressive tax Rik 4 © Hotel accommodation tax iii 424 (Regressive tax #384) Practice P1036 20121035 20131036 20141036 20141106 20151034 2015 1 QUb ® © by Herman Yeung Economics Team 8 cs www. youtube.com/hyhermanyeung2. Government revenue if Jf Hk Other revenue L460 A. © revenue from land sales 3G 26 © Investment return 48 # 4K © Fees or charges ik # @ Fines Hak 4 P «|, ® ® g g E 6 4 Taxable Income A 8k 3 Taxable Income A A 3. Value-added tax a Si 18 42/ Sales tax 48 8 #2? 2 2012/1033 201411 10a ® © by Herman Yeung Economics Team P.59 cs www. youtube.com/hyhermanyeungAdam si Equity 24 Economy & Convenience %4R eooo Certainty 94k Practice PP'1Q37 Practice PPIVOUd 2013/1035 Business cycle #8 385 J] #4 Economic growth — General Price level Unemployment rate GARE MMM rate REF Depression 48 RAGS RAGS Recovery #2 it it Prosperity a RAB RAS Recession BR Practice PP/IVQ7 2012/11 Q10b 2012/11 06 2013/1033 20141029 20141039 2015 Ola ® © by Herman Yeung Economics Team P.60 cs www. youtube.com/hyhermanyeungCe Ta) 5, Customer Price Index (CPI) 3 # 41 45 $ - Reflected general price level of consumer goods 0 38 $8 2 41 sa) — ARH AH 2K Inflation # 4% : sustained increase in general price level — AR4y 15 2k 45 ME JF Deflation #8 4% : sustained decrease in general price level — #98 (2-25 SF 1 Stagflation 44% : economic depression + inflation #2: #k + #@AR Practice P1030 20141040 Unanticipated inflation 4 (138 A Practice PP'/Q31 2012/1032 2013/1034 20151036 Nominal interest rate = real interest rate + expected inflation rate SRAE — KHANH + FURS Practice PP1/Q35 2013/1103 Actual rate of return = nominal rate of return — actual inflation rate HRORE = SRORS — TAR Cost of holding money #4 S44 mA 20121001 201411032 2014105 20151031 ® © by Herman Yeung Economics Team P.61 cs www. youtube.com/hyhermanyeungCot) ba) 6. Government Policy s Jif ROR &14% commercial bank ij #4847) * Fiscal Policy # stat A: Surplus / Balanced / Deficit budget Bee / PA / AE WH HAA: Fiscal surplus / balance / deficit Mak Bak / 4 | iE x Government expenditure / Taxation / subsidy AE MIR / #20 / HHA 20121031 Monetary Policy #3 3 Money supply $4 #648 : interest rate, reserve ratio, printing banknote ALR + BAR > ep aay R Practice PP'VQ34 20131028 2013/1108 20141035 20141107 2015/1039 ® © by Herman Yeung Economics Team P.62 cs www. youtube.com/hyhermanyeung1 Cumulative share of income < x ® Fraction of population 1 Ap ibe Gini coefficient 28 0 1B =0.2 AK (opportunity cost m4) 1A = 5B Coppornnity cost wi) Trade ratio Hw: 0.2 i 1a 203K ema oe FARE 02k RRAA LSE e RO HK e Pu 01 ema A RRA AA LAM 1K eo orb 02% 1B<05 China : 100 units of resources PB: 100 4 aR z 36 Hye OR 18 Hak 100 % =36 B = 18+ 1 =0.5 A copportnity cost a8) 1k =28 Aorportanity ost Mt) Pat © KLKK6 D BREA ISK © ABBA HR 1 © SPibR o4 a Pea © ALKRIa MRAAIK © ARBARNRR 4 a © Sri 2a ® © by Herman Yeung Economics Team P.65 cs www. youtube.com/hyhermanyeung2. Comparative Advantage bb pe 4% 3 Thailand 4 2A Horta RA 4 ae 2A LMORRA 2 tr $0.25 8 =05 D> 1B =2H cooponunity cost W-# HR) LAR $0.5 B copportnity cost #4) Trade ratio FH te # + wile o e °e BRA A 04S SP HOR OK Malaysia AR #3 AL Hoh DRS By LAIMGRRA LOR 1% =02 8 =05% 1B = 2.5 A copporunity cost atk) 1 = 0.4 B Copportmity cost Ht) 04 a<1 #05 a SREB © ALKK088 A WREAK © AMBART RAI & © ePtR 012 & SREB © KLKK04 SG HRA A LK © ABBA Y HR 045 Bo © Spike 0.05 a ® © by Herman Yeung Economics Team P.66 www. youtube.com/hyhermanyeung2. Comparative Advantage bb pe 4% 3 Thailand 4 Malaysia sR # 3 2A Horta RA 4 ae 2A | tet BBS a 2A LMORRA 2 tr LALMARRA IGE $0.25 8 =05 1% =02 8 =05% D 1B =2AK cooponnity cost #44) 1B =2.5 A (opportunity con mw akk) LAR $0.5 B copportnity cost #4) 1 = 0.4 B Copportmity cost Ht) Trade ratio % ve : (Thailand A HHO1R & SREB © ALKK088 A WREAK © ARBART RR 1 a © Spice 0.12 a SP wR OK Trade ratio HLH: 2K<1B<25H% (Thailand #2) Ho 1B 4p 0.5 & trade RH HEN ® © by Herman Yeung Economics Team P.67 cs www. youtube.com/hyhermanyeungG. International Trade BREE 3. Practice #f ¥% : 2012 Paper I Q37, 38 Country A F Country B 2 1®= = K l= = K eee AR (opportunity cost i # wk) 1m = AR (opportunity cost 4 a8.) 1 = FE (opportumity cost Me # nk.) IR = AL (opportunity cost He @ a6) Trade ratio # H we: Re He Country A ¥ El Country B ZB @ KLKE BRA A @ ALK BOR e qth bdnce RY HR © FP aR © FP tR ® © by Herman Yeung Economics Team P.68 cs www. youtube.com/hyhermanyeungPOU CC tt) 3. Practice #f ¥% : 2013 Paper I Q38, 39 Thailand 46 Japan BA = Ae ie > 1k = 1 opprtnty ost 4) = FRB onportmiy cos 4) 1 Re = Cooponunity cont Re) = A Conporuniy cos #4) Trade ratio 3 vo : %% ( no Rt a) Thailand 462 Japan BR @ KLKE BURL A © AaMERY © Hote at © Ait aint O ship oO shape ® © by Herman Yeung Economics Team P.69 cs www. youtube.com/hyhermanyeung3. Practice $% : 2014 Paper 1Q41 Country 4 F El Country B ZF SAIXSA 4 ih EAIXSA tr Hii SAIYSA SAYER $F ik 1% = X= Y 1% = X= y > X= Y ‘opportunity cos #24) LX= ¥ copportnity cost M4) = X (opportunity cost a8) = X Copportaniy cost WH) Trade ratio % He: ® © by Herman Yeung Economics Team P.70 cs www. youtube.com/hyhermanyeung3. Practice # $% : 2014 Paper 1Q44 ® © by Herman Yeung Economics Team P.71 cs www. youtube.com/hyhermanyeung3. Practice $% : 2015 Paper 1Q40 ® © by Herman Yeung Economics Team P.72 cs www. youtube.com/hyhermanyeung3. Practice $$ : 2012 Paper I Q9 Country AF al SA1WSA tr Ki SARA tr Ki 1®= tae = 3k BA (onportmity cost Rf HkK) 1 k= ‘Hla(opportunity cost Hef 8.4) Trade ratio % He: Country B ZF 2A lS EALVHREA Sk opportunity cost #4 8%) 1ak= Hiatopportnity sot RH) ® © by Herman Yeung Economics Team P.73 cs www. youtube.com/hyhermanyeung3. Practice $$ : 2013 Paper II Q: Country A? Country BZ fe = fe = > l= E cooportnity cost 4) lt = ET Comperumiy cos #56) 1@= 4B (opportunity cos 8) = AE Conpertumity cose 8) Trade ratio % ve : ® © by Herman Yeung Economics Team 4 cs www. youtube.com/hyhermanyeung3. Practice Paper Il Country A Fal Country B 2 = + B= 4 > 1&= F ooronmitveot eis) 1K = F Conporuniy cos #4) lf = I torpommiyeot RE) «IF = $8, oppor cos #4) Trade ratio # Hr ¢ $o on Country AP al Country B 2 © ALK He A © KLKE BOE A e 4 e 4 © Aire ae © Ato eee © ship O Epa ® © by Herman Yeung Economics Team P.75 cs www. youtube.com/hyhermanyeungPOU CC tt) 3. Practice # $% : Practice Paper 1 Q39, Q40 Country A F Country B 2 aa = + l®= + + > 1F= F coommmivost meee 1 = F onporiy cos #4) 14 = F comnmnivetees 1 = FF onportiy cos #4) Trade ratio $ 3 LH ¢ Bo 4 Country A # © KLKE CE A e HOPE Hak © FP ab ® © by Herman Yeung Economics Team P.76 cs www. youtube.com/hyhermanyeungG. International Trade BREE 3. Practice # #% : Practice Paper Il Q9 ® © by Herman Yeung Economics Team P.77 www. youtube.com/hyhermanyeungSOT CT Br Ca 3. Practice Paper Il Q7, ® © by Herman Yeung Economics Team 8 cs www. youtube.com/hyhermanyeungPOST CTMr CCoM tt 4. Currency appreciation depreciation aa Currency appreciation / depreciation $f si 48. / #18 From HKDI © JPY15.6 JPY © HKDO0.064 To HKDI © JPY15S.7 JPY1 © HKDO,063. | [HK Dollar A | Japanese Yen 8 7% HKDI © JPY1S.6 IPYI © HKDO.063 IPY1 © HKD0.064 HKDI © JPY15.7 Practice PPIN'Q10 2012/1039 20121108 20131037 20141 Ola ® © by Herman Yeung Economics Team P.79 cs www. youtube.com/hyhermanyeungPOST CTMr CCoM tt 5. Balance of Payment_F Current account #48 (2825 40) (Net Export #1 17 34 + Net income & Net transfer payment i$ AFH) + Capital & financial account AR 4 ARK (Asset transfer & Direct investment # A445 & HEH) + Official Reserves '& A #¥ fi =0 Current account #44 : Trade deficit / surplus Hk / sie Official Reserves # 7 #4 4%: Balance of payments deficit / surplus P&vk & 4 F/ HAR Visible 4 4 — goods $4 invisible 44% — services IRA 20121040 2012/11 5b 2013/1106 20141043 2015/1043 2015/1044 20151 Q12a ® © by Herman Yeung Economics Team P.80 cs www. youtube.com/hyhermanyeung6. Hong Kong linked exchange rate system. © HKMA holds a large amount of foreign exchange reserves BERRA GRE EOE © All note-issuing banks can exchange for US dollars with the HKMA at the linked rate anytime PAA AR BY LAT TAD MEE MLB HH © The exchange rate between HK and US dollars in the foreign exchange market is floating BRKT E IE TIM RRB ED 20131040 20141042 20151042 ® © by Herman Yeung Economics Team P.81 cs www. youtube.com/hyhermanyeungLa PeNe le Deter eum ey be General Price level — BK LRAS SRAS AD a Aggregate output #4 AD = Aggregate demand 4% & & = consumption + investment + government expenditure + net export = ABA + ARR + stAPS f+ eho isposable income 1k FLHLA, discount rate 4 32%, trading partner $ 5) A 4, transfer payment HAS 4b SRAS = Short-run Aggregate supply 4.39 48 081% Expected general price level 38% — ath iE. Production facilities temporary broken 4. Short-term government policy 44.848 Fk i a Ha ERAS = Long-run Aggregate supply R$ 28-48 18 Quality of factor production 4B #4 % Quantity of factor production + A #4 4 8 3 Technology improvement #44: ies permanent broken + 2838 A Heat Long-term government policy fist A 3k 5% Production fa ® © by Herman Yeung Economics Team P.82 cs www. youtube.com/hyhermanyeungLa PeNe le Deter eum ey be Practice PP'}Q23 Practice PP'1.Q24 20121025 2012/1036 2012/1 010¢ 20131023 20131029 201311 Q12¢ 2014102 20141028 20141038 201411106 2015/1026 201510. 2015/1037 ® © by Herman Yeung Economics Team P.83 cs www. youtube.com/hyhermanyeungGeneral Price level General Price level AAR LRAS AR BOK LRAS SRAS SRAS AD AD 0 >¥ 9 >Y Inflationary gap 3 AR £ #6 Deflationary gap 3 4% 2 #6 Cee © SRAS decrease pressure “F FFE © SRAS increase pressure $+ 1 4 @ AD decrease F it @ = ADincrease Practice PP'VQ32 Practice PPIQI3 20121026 20121034 20131024 20131031 2013/1 04 20141034 20141 Q12¢ 20151038 2015/1108 2015 Q12b,¢,d ® © by Herman Yeung Economics Team 4 cs www. youtube.com/hyhermanyeungI. Elective | : Monopoly, Price discrimination PUN ste tetslscs TBR Lise teed tial | 1. Monopoly # i P 201310 13a 20141 O13a,b Practice PPV Q15a 2015 O13a,b,c ® © by Herman Yeung Economics Team P.85 cs www. youtube.com/hyhermanyeungI. Elective | : Monopoly, Price discrimination PUN ste tetslscs TBR Lise teed tial | Price di rimination {i 44>: A practice that different prices are charged to different customers for the same goods or services by the seller, which cannot be explained by difference in costs. ABARAT Ay» RPT ALAA FA ty RAR AR AR LA + IRB fo AY Me Condition % # © Sellers are price-searcher K&B 1R © Resale of goods between different segments should be difficult and costly, SW ZR A ho RAG A BMA AMA OY BA © Different segments have different price elasticity of demand FR PL 36 AEA AB) AI ACE + First-degree_%—#t selling to cach customer at a different price 14 7 ] 44 (84% & 25-4 — 18 FA Second-degree_#% = #% Buy more pay less #3 4 $ Third-degree 9 = #& Dividing the market in segments and charging the same price for everyone in each segment. 325% SUB) D- WG > MCE BH EAR Practice PPV QISbi 20121 Ol4a,b,e 2013/11 Q13b 201411 O13¢ 2015 Q13d ® © by Herman Yeung Economics Team P.86 cs www. youtube.com/hyhermanyeungI. Elective | : Monopoly, Price discrimination mec ssua rel acelcoe a Le] eed inl | 3. Anti-competitive © Mergers 4 - Horizontal mergers 4% 6 4 ~ Vertical mergers #8 4-6 - Potential competition mergers st 4638 #4 4-4 © Abuse of dominance #3428 - Predatory pricing 424425 4% (local Ast) - Dumping #4 (foreign #34) - Cross-subsidization & RAHN (HH EMA Y ABER S35 HG) © Horizontal agreements #7 ith - Price-fixing 4445 - Output agreements #4 - Bid rigging 4R4E 204% - Market division : in products and locations WH} 85> > & sR sboIK = Customer allocation f p22 - Joint boycotts #45 - Unfair or disc inatory standards 7 24 & © Vertical agreements #8 67 #h aK - Exclusive dealing 494% 2 4 (supplier control outlet 3 #4 Hine F) - Sole distributor #§ #2 4 (outlet supplier 4§ # (#46 #) - Tie-in-sales, full-line forcing and product bundling, BME SHEWAN A ADM - Resale price maintenance 42 #148 & (845 (759 & THF) - Long-term supply contracts 384% A 414) (Califorxxx) SOURLAE - Advertising ban Practice PPI QISbii 20121 Ol4de 2013/1 O13e,d 20141 013de 2015 O13ef ® © by Herman Yeung Economics Team P.87 cs www. youtube.com/hyhermanyeungI. Elective | : Monopoly, Price discrimination mec ssua rel acelcoe a Le] eed inl | 3. Anti-competitive © objectives of the competition ordinance in HK © _ the first conduct rule covering agreements, concerted practices and decisions that prevent, restrict or distort competition. © the second conduct rule covering abuse of market power, © exclusion and exemptions O FRE RO A e EO — ih seme + A Ata OAR + I A RE e W - BREAD RRR O BRABENK ® © by Herman Yeung Economics Team P.88 cs www. youtube.com/hyhermanyeungEconomics agi ele bel i Eee fae Pa to) aa cove (011 (Cog cortt1 9] LOA Consumption Possibilities Frontier Mucus surena ess Be A lL Ae tit) Brazil : 60 uni China : 100 units of resources 2 : 60 tr Pl: 100 tra e A a # 60 Hyori BOR 36 Hie OR 6 ie 18 #4 60 % =00 2 =6% 100 6 = 18K D> 1B =01 A Copporniy cot m4) 1B =0.5 A comporuniy cos 10 3 (opporanity oot opportunity ost 48) Trade ratio YH wR 1B 8 Frontier 429 6 (EIN =< — Consumption Possibility Frontier ify#2n( ie 19% 0 » © by Herman Yeung Economics Team P.89 « www. youtube.com/hyhermanyeungH ey 1 ii Economics (LATE UO eres Pa to) aa cove (011 (Cog cortt1 9] LOA Consumption Possibilities Frontier Munro suena Bs BT Gl Ae Ete Le 2. Practice : 2012 Paper II Q15a, b,c Country 4 FA Country B ZB X= y X= y > = Y copportnitysont RHA) LX ¥ (opprnnity cos RHA) y= X (opporsniyoor ee) = X copra cont a) Trade ratio @ H te xX @ y Country 4 FQ Country B ZB OO KLKE Rs A OO ALKE BREA © AMSAT HR © AMBARR ER © Adon eh & oF. ee © Fb te Oo Shika ® © by Herman Yeung Economics Team P.90 cs www. youtube.com/hyhermanyeungElective || : Production Possibilities Frontier, Consumption Possibilities Frontier Munro suena Bs BT Gl Ae Ete Le Country A F Country B 2 BAINES PR 2EIYSR FH 2a IY RA AAIYRA risk l®= X= Yy l®= X= Y > Y coporuniycon eek) LY Xoppornity cos 9: Trade ratio @ Hv Ft 20 10 0 Be 5 10 15 20 ® © by Herman Yeung Economics Team www. youtube.com/hyhermanyeungElective || : Production Possibilities Frontier, Consumption Possibilities Frontier Munro suena Bs BT Gl Ae Ete Le 2014 Paper II Country 4 FA Country B ZB Xx y Yy > = Y copportnitysont RHA) LX ¥ (opprnnity cos RHA) y= X (opporsniyoor ee) = X copra cont a) Trade ratio @ H te xX @ y y 16] PPE, 1o| PPE 2 cs www. youtube.com/hyhermanyeung ® © by Herman Yeung Economics TeamH ey 1 ii Economics (LATE UO eres Pa to) aa cove (011 (Cog cortt1 9] LOA Consumption Possibilities Frontier Munro suena Bs BT Gl Ae Ete Le 2. Practice # #4 : Practice Paper II Ql6a Country A F Country B 2&9 V4 X= y > ixX= ¥ opportunity 2 8) LX= ¥ copportanity cost fa) = X oppormnity oot tte) = Y= X opporanity cost fe) Trade ratio to : X @ y Country 4 F Country B 2 @ KLKE BREA @ ALK BR A © 488m ath © ARBAR TAR © sap © FP abR Good ¥ 1008 50 A’ 0 aa Top” Good ¥ ® © by Herman Yeung Economics Team 3 cs www. youtube.com/hyhermanyeungEconomics agi ele bel i Eee fae Pa to) aa cove (011 (Cog cortt1 9] LOA Consumption Possibilities Frontier Mucus surena ess Be A lL Ae tit) ® © by Herman Yeung Economics Team P.94 cs www. youtube.com/hyhermanyeungEconomics agi ele bel i Eee fae Pa to) aa cove (011 (Cog cortt1 9] LOA Consumption Possibilities Frontier Munro suena Be A lL Ae tit) 3. Human Development Index (HDI) _A #448 45 The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development (1) life expectancy (longer / shorter) (2) literacy rate (higher / lower) (3) per capita income indicator AMR RAR AGES AH SMR RE > HR () Fe G/B) (2) ER GRAM) GB) ASB RA (PS. from 0 to 1, higher mark = better quality of life and development BOL1 OX = AEMRARR EH) per capita income indicator increase May Not general KBR IBIEAN Rob aR ALTER LA Reason J Income is less evenly distributed ing standard increase larger proportion of total output consists of national defense and capital goods more pollution problem less leisure fewer non-marketed / unreported goods HAD ERA BARY Mt EAH BRA RSS DT EM OF RIVARAWHHS | RAP RAD Practice PPAVQ16b 20121 Q15d 2013/1 Q14b 2015/1 I4e @oeoeoogoood ® © by Herman Yeung Economics Team P.95 cs www. youtube.com/hyhermanyeungPractice P1038 2014 OAS 20151045 ® © by Herman Yeung Economics Team P.96 cs www. youtube.com/hyhermanyeung