Ch04 Satt Eng

HKDSE Economics in Life – Microeconomics 1 (2nd Edition)
Chapter 4 Production and Division of Labour

Suggested Answers
Brainstorm 4.1
1. A farmer produces agricultural products. A tailor produces clothes. A baker
produces bread.
(OR any reasonable answers)
2. Yes. A hairstylist produces hair cutting and arranging services.
(OR any reasonable answer)
Exercise 4.1
1. When a motorbike is used for final consumption (such as used by someone for
leisure), it is a consumer good.
When a motorbike is used in a production process to produce other goods and services
(such as used by a restaurant for delivering food), it is a producer good.
2. (a) Public goods
(b) Private goods
(c) Public goods
(d) Public goods
Revision Corner 4.1

1. A
Approaching the question
producer
does not mean
public; non-rival; non-excludable
public; non-rival; non-excludable
2.
Yes. (1)
The fireworks display is non-rival in consumption. A person’s consumption will
not reduce the amount available to others. (2)
OR
the fireworks display is non-excludable in consumption. It is too costly to exclude
others from consuming it. (2)
© Aristo Educational Press Ltd. 1

Suggested Answers
Exercise 4.2
(a) tertiary production
(b) secondary production
(c) tertiary production
Brainstorm 4.3
- free response
- Because different teachers are good at different subjects.
(OR any reasonable answer)
Exercise 4.3
1. (a) simple
(b) complex
(c) regional
2.

Suggested Answers
Revision Exercise
Multiple Choice Questions
1. B
2. A
3. A
4. A
5. B
6. B
7. D
8. C
9. A
10. B
11. C
12. D
13. D
14. A
15. D
16. A
17. C
18. B
Short Questions
1. (a) No. (1)
Books in a public library are rival in consumption. When someone is reading a book,
the amount of books available to others is reduced. (2) OR
Books in a public library are excludable in consumption. It is possible to prevent
others from reading the books. (2)
(b) Yes. (1)
Knowledge in books is non-rival in consumption. A person’s consumption will not
reduce the amount available to others. (2) OR
Knowledge in books is non-excludable in consumption. It is very costly to exclude
others from consuming it. (2)

Suggested Answers
2. Yes. (1)
The performances broadcasted online are non-rival in consumption. A person’s
consumption will not reduce the amount available to others. (2) OR
The performances broadcasted online are non-excludable in consumption. It is very
costly to exclude others from consuming them. (2)
3. (a) Economic goods. (1)

The projectors are produced from scarce resources which have alternative uses. /
More of the projectors may still be preferred. (2)
(b) Producer goods. (1)
The projectors are goods used in a production process to produce other services
(catering services). (1)
(c) Private goods. (1)
The projectors are rival in consumption. When someone is using the projectors, the
amount of projectors available to others is reduced. (2) OR
The projectors are excludable in consumption. It is possible to prevent others from
using the projectors. (2)
4. (a) Tertiary production. (1)

They provide advertisement production services. (1)
(b) A producer good. (1)
It is used in a production process to produce other goods and services. (1)

(b) Division of labour/specialisation. (1)
The waiters, cashier and cooks can specialise in producing what they are good at, and
thus producing goods more efficiently. This can increase the labour productivity of
the restaurant. (2)
OR
As different stages of production are operated at the same time, machines and tools,
such as kitchenware and cash register, are more fully utilised. (2)
OR
Any reasonable answer

Suggested Answers
6. Division of labour/specialisation. (1)

Reasons :
- choosing the best people to do the job
- practice makes perfect
- saving time on training
- saving time on moving from one task to another
- possibility of mechanisation
- any reasonable answers
(Mark the FIRST THREE points only, 1 mark each)
Long Questions
1. (a) The vegetable that supplied to Mr. Chan’s restaurant are producer goods. (1)
The vegetables consumed by his family are consumer goods. (1)
(b) He engages in primary and tertiary production. (2)
(c) Division of labour. (1)
Advantages:
- increasing (average) labour productivity
- economy in the use of capital
- improving standard of living
(Mark the FIRST TWO points only, 1 mark each)

(b) Complex division of labour has been adopted as a worker specialises in a
particular stage of the production of a good (tutorial services). (2)
(c) Reasons:
- choosing the best people to do the job
- practice makes perfect
- saving time on training
- saving time on moving from one task to another
- stimulus to mechanisation
(Mark the FIRST TWO points only, 1 mark each)

Suggested Answers
(d) Shortcomings:
- Work becomes monotonous: Under specialisation, workers have to do the same task
repeatedly. The job may become dull and monotonous. Workers may have less job
satisfaction and they may not perform well.
- Greater risk of unemployment: Workers are only trained in the skills required for
their jobs, which may not be applicable to other jobs. If they lose their present jobs, it
may be difficult for them to find another job, which may require other skills.
- Greater degree of interdependence: Under specialisation, the whole production
process is divided into many highly correlated stages. If a problem occurs in one stage,
the latter stages of production will be affected. This will slow down the whole
production process.
- Loss of craftsmanship: Mechanisation and mass production makes the products
produced cheaper than handmade ones. The demand for handmade products and their
craftsmanship will then decrease.
- Standardisation of products: Output is often standardised when division of labour is
practised. Thus, consumers will have fewer varieties of products to choose from.
- Any reasonable answers
(Mark the FIRST TWO points only, 2 marks each)
3. (a) The percentage contribution of manufacturing to Hong Kong’s total value of

output fell between 2000 and 2016. (1)
Reason:
- massive relocation of factories to other places
- any reasonable answer
(Mark the FIRST point only, 2 marks)
(b) No. (1)
Although the percentage contribution of agriculture, fishing, mining and quarrying
activities to Hong Kong’s GDP remained unchanged at 0.1% between 2000 and 2016,
the value of Hong Kong’s GDP increased from 2000 to 2016. Therefore, the total
output value of primary production increased. (2)
(c) Secondary production’s percentage contribution to the total value of output of
Hong Kong decreased from 12.6% (4.8%+2.9%+4.9%) in 2000 to 7.7%
(1.1%+1.4%+5.2%) in 2016. The relocation of factories to other places not only
reduced the total value of output of secondary production, but also reduced the total
number of workers employed in the secondary sectors. The relative importance of the
secondary sector to the Hong Kong economy in terms of both GDP and employment
therefore decreased during the period. (3)

Suggested Answers
DRQ Level-up
(a) (i) Producer goods. (1)
They are used in a production process to produce other goods and services. (1)
(ii) The knowledge of hydroponic methods. (1)
(b) (i) Primary production. (1)
The farming activities extract raw materials from nature. (1)
Tertiary production. (1)
The café ran by Happy Farm provides catering services. (1)
(ii) Happy Farm and its café need various producer goods (e.g. light and cookware)
provided by secondary production. The café needs suppliers in the primary sector for
foodstuff (e.g. fish and vegetables). Also, transportation services provided by the
tertiary sector may be needed to deliver the vegetables or food to customers. (3)
(c) Complex division of labour. (1)
Workers specialise in a particular stage of production in Happy Farm. (1)
(d) (i) Statement A is a positive statement. (1)
It describes what is, with no value judgement. It is refutable by facts. (1)
(ii) As farmland is scarce in Hong Kong, it should be used for growing premium
produce because its opportunity cost (i.e. growing ordinary produce, which generates
a lower value) is lower than that of growing ordinary produce (i.e. growing premium
produce, which generates a higher value). (2)

Ch04 Satt Eng

Uploaded by

Copyright:

Available Formats

Ch04 Satt Eng

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ch04 Satt Eng

Uploaded by

Copyright:

Available Formats

HKDSE Economics in Life – Microeconomics 1 (2nd Edition)

Chapter 4 Production and Division of Labour

Chapter 4 Production and Division of Labour

Revision Corner 4.1

© Aristo Educational Press Ltd. 1

© Aristo Educational Press Ltd. 2

© Aristo Educational Press Ltd. 3

3. (a) Economic goods. (1)

4. (a) Tertiary production. (1)

5. (a) Tertiary production. (1)

© Aristo Educational Press Ltd. 4

6. Division of labour/specialisation. (1)

2. (a) Tertiary production. (1)

© Aristo Educational Press Ltd. 5

3. (a) The percentage contribution of manufacturing to Hong Kong’s total value of

© Aristo Educational Press Ltd. 6

© Aristo Educational Press Ltd. 7

You might also like