Award Scheme on Instruction Design

2019/2020

Macroeconomics

C088

Form 5 Economics

Lesson Plan (Academic Year)

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A. Introduction The learning of Economics is a combination of social observation and mental logic

processing. Students have to pay attention to the phenomenon of the real world and learn

the economic theories and mechanism that drives the results. They also have to develop

global awareness on interaction among different economies and the force behind

governments’ actions.

In this document, a detailed description of the plan for learning and teaching F5 Economics

will be shown. Collaborative learning is being used as the regular setting. Scaffolding

techniques are used throughout the plan to enable students to explore the topics and build

up important knowledge points by themselves. Formative assessments are used to foster

learning rather than focusing on testing. Students are encouraged to learn for fun and self-

development rather than for grades. IT tools and platforms are extensively used to gain

efficiency and for collecting useful information about learning effectiveness. Reading in

different areas is encouraged to broaden students’ horizon on global happenings. Students

are encouraged to think like an economist in their daily observations. Queries are invited

about economic phenomenon. Last but not least, students are to read to learn more about

our home country to develop love and admiration towards it.

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Table of Contents A. Introduction 1

B. Design of Teaching and Learning 5

1. Learning and Teaching Objectives 5

1.1 Overall learning objectives of the subject 5

1.2 Learning objectives of F5 level Economics 5

1.3 Major concerns in the academic year 2019-2020 6

1.4 Other objectives 6

1.5 Basic Academic Attainments 7

2. Students’ Background 8

3. Main Design Features 9

3.1 Collaborative learning in enhancing students’ self-learning ability 9

3.2 Catering for students’ learning diversity 9

3.3 Reading to learn: cultivate global awareness 9

3.4 Learning about our home country 9

3.5 Scaffolding in learning 10

3.6 Thinking like an economist 10

3.7 Formative assessment 11

4. Teaching Focus and Difficult Points 12

5. Assessment 13

6. Teaching Aids 15

7. Information Technology Application 16

7.1 Interactive assessment tools 16

7.2 Interactive presentation/collaboration tools 16

7.3 Platform for document sharing and information dispersing 17

8. Emotional Attachments to Home and Country 18

C. Teaching Schedule 19

D. School Suspension and Online Learning 30

E. Detailed Lesson Plans 31

1. Lesson 1-2 31

2. Lesson 3-4 33

3. Lesson 5-6 38

4. Lesson 7-8 44

5. Lesson 9-10 53

6. Lesson 11-12 56

7. Lesson 13-14 65

8. Lesson 15-16 71

9. Lesson 17-18 79

10. Lesson 19-20 84

11. Lesson 21-22 92

12. Lesson 23-24 94

13. Lesson 25-26 101

14. Lesson 27-28 103

15. Lesson 29-30 106

16. Lesson 31-32 107

17. Lesson 33-34 109

18. Lesson 35-36 111

19. Lesson 37-38 117

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20. Lesson 39-40 127

21. Lesson 41-42 133

22. Lesson 43-44 135

23. Lesson 45-46 142

24. Lesson 47-48 147

25. Lesson 49-50 150

26. Second Term Started 152

27. Online Learning Week 1 153

28. Online Learning Week 2 155

29. Online Learning Week 3 159

30. Online Learning Week 4 160

31. Online Learning Week 5 162

32. Online Learning Week 6 166

33. Online Learning Week 7 167

34. Online Learning Week 8 171

35. Online Learning Week 9 176

36. Online Learning Week 10 181

37. Online Learning Week 11 183

38. Online Learning Week 12 188

39. School Resumption 189

40. Lesson 51-52 189

41. Lesson 53-54 191

42. Lesson 55-56 195

43. Lesson 57-58 197

44. Lesson 59-60 202

45. Lesson 61-62 205

46. Lesson 63-64 207

47. Lesson 65-66 211

48. Lesson 67-68 220

49. Lesson 69-70 228

50. Lesson 71-72 229

51. Lesson 73-74 235

52. Lesson 75-76 241

53. Lesson 77-78 243

54. Lesson 79-80 244

55. Lesson 81-82 248

56. Lesson 83-84 253

57. Lesson 85-86 254

58. Lesson 87-88 256

F. Evaluation and Recommendations 257

G. Appendix 263

Appendix 1 Requirement of the Structural Project 263

Appendix 2 Supplementary Exercise on Current Account Balance (Lesson 23-24) 265

Appendix 3 Class Practice on Environment Protection (Lesson 25-26) 265

Appendix 4 Case Studies on Government Intervention (Lesson 31-34) 268

Appendix 5 Highlights for the Policy Address of Macau SAR for 2019 (Lesson 35-36) 271

Appendix 6 Exercise on Supply-Side Policies (Online Learning Weak 2) 276

Appendix 7 Google Form Exercise on Globalisation (Online Learning Week 3) 277

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Appendix 8 Suggested Answers for Exercise on Globalisation (Online Learning Week 5) 279

Appendix 9 Fill in the Blank Exercise on MNCs and FDI, with Answer Key (Online Learning Week 5) 280

Appendix 10 Google Form Exercise on MNCs and FDI (Online Learning Week 6) 282

Appendix 11 Fill in the Blank Exercise on International Trade, with Answer Key (Online Learning Week 7) 283

Appendix 12 Google Form Exercise on International Trade (Online Learning Week 7) 284

Appendix 13 Case Study on Protectionism (Online Learning Weak 8) 285

Appendix 14 Google Form Exercise on Trading Blocs (Week 55-56) 286

Appendix 15 Class Practice on Previous Google Form Exercises (Lesson 57-58) 288

Appendix 16 Google Form Exercise on Exchange Rates and its Determination (Week 73-74) 288

Appendix 17 Instructions on Game of Eden (Lesson 83-84) 291

Appendix 18 Instructions on Game Booths (Lesson 85-86) 292

H. Reference 295

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B. Design of Teaching and Learning

1. Learning and Teaching Objectives

1.1 Overall learning objectives of the subject

The overall objectives of the subject are:

➢ To provide students with a better understanding of global, national and local

economic issues that now confront our society.

➢ To guide students to understand the fundamental economic concepts and theories

and apply to explain real world situations.

➢ To equip students the economic knowledge and skills to analyze decisions made by

individuals, businesses and governments.

➢ To develop students’ independent reasoning and analytical power to develop

critical thinking and self-learning ability.

1.2 Learning objectives of F5 level Economics

In F5 Economics, students learn about Macroeconomics. It is further subdivided into

two sections: Government and the Economy, and the Global Economy. The curriculum

of the subject follows that of Pearson Edexcel IGCSE Economics. Upon complete of the

F5 curriculum, students are expected to be able to handle topics listed below:

➢ Macroeconomics looks at the performance, structure and behaviour of the entire

economy. This section addresses the key macroeconomic objectives of a

government, such as growing income, keeping prices stable, keeping

unemployment low, redistributing income and protecting the environment. It looks

at the various tools and measures that a government might use to achieve its

objectives, such as adjusting levels of spending, taxation and interest rates in the

economy. Finally, this section also looks at the impact on the economy of using

these tools and measures and the possible trade-offs that might exist between

different macroeconomic objectives. (Jones, 2017)

➢ The connectedness of different countries and their economies has increased over

time. This is called globalization. This section looks at the impact that globalization,

and multinational companies, can have on countries, governments, producers,

consumers, workers and the environment. It also covers the importance of

international trade, the development of trading blocs, the role of the World Trade

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Organisation and protectionism. Finally, the importance of exchange rates is

discussed – how they are determined, the factors that influence the supply and

demand for currencies and the impact on exports and imports of changes in the

exchange rate. (Jones, 2017)

After completion of F4 and F5 Economics, students are well equipped to take Pearson

Edexcel IGCSE Economics and achieve a reasonably satisfactory grade (around grade 9-

6; equivalent to previous A*, A and upper B). Examination time is originally set to

May/June 2020. It has been cancelled due to the pandemic.

1.3 Major concerns in the academic year 2019-2020

Every year, the school announce major concerns for the new academic year. All working

teams and subject panels are encouraged to accommodate these major concerns in

their annual plans. These plans should be tailored to meet the needs of the working

team/subject panels. The following shows the tasks for F5 Economics in response to the

school major concerns:

➢ To use collaborative learning in enhancing students’ self-learning ability: extensive

use of scaffolding techniques to let students explore the topics.

➢ To cater for students’ learning diversity: create success experiences even to slow

learners.

➢ To engage more in reading for learning: constantly read news and analysis to gain

global awareness.

1.4 Other objectives

➢ In response to the promotion of formative assessment as part of the school

assessment reform, we are in a good position to try out different assessment tools.

Extensive use of assessment tools supported by information system is planned.

Students are encouraged to explore how these tools can help them learn in a more

effective and efficient way.

➢ Our home country, The People’s Republic of China is becoming a very important

part of the global economy. As we are learning the subject based on the

specifications laid down by the UK Education Department, it is more important to

supplement students with economic condition, events and happenings of China and

Asia. Students are given different videos and articles to help them understand more

about economies around us.

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1.5 Basic Academic Attainments

The Economics subject fulfilled some of the BBA requirements in Senior Secondary

Social and Humanities Education. Please refer to the detailed lesson plans in section E

for the BBA achieved. The other requirements are taken up by the Integrated

Humanities subject.

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2. Students’ Background

The class involved is a F5 class in the Business stream. The Business stream in our school offers

a comprehensive curriculum in different business-related subjects in senior secondary years.

Starting from form 4, students will study Accounting, Economics and Business, along with

other general subjects. Upon completion of form 4, they will choose between in-depth

division and broad division. The in-depth division aims at A-Level public examinations in

Accounting and Economics, while the broad division offers a broader subject mix but less

demanding curriculum of Accounting, Economics Business and Chinese History.

The class consist of a combination of 27 students from both the in-depth and broad division.

As a result, the class is made up students with very different abilities and aspirations.

Collaborative learning is used for this subject. Students are arranged in groups of 4 according

to their academic performance of the subject. Each group consist of a strong student, 2 middle

ranged students and a weak student. Groupings will be re-arranged once a term.

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3. Main Design Features

The learning of Economics is a very structured process. The textbook used lays down a very

organized structure for learners to follow. Nevertheless, various teaching strategies are used

to cater for special objectives of the school and the Economics panel.

3.1 Collaborative learning in enhancing students’ self-learning ability

➢ Collaborative learning arrangement will be used in regular lessons

➢ Carry out group research and analysis on macroeconomic performance of countries

➢ Assign regular group research tasks

➢ Extensive use of group discussion

➢ Group presentation of findings

➢ Use of JAGSAW arrangement when sharing ideas

➢ Create portfolios containing research results of a certain country

3.2 Catering for students’ learning diversity

➢ Regular coaching sessions will be offered to less-able students for them to raise their

queries and clarify concepts, hence boosting their confidence in this subject

3.3 Reading to learn: cultivate global awareness

➢ Articles have been prepared for students to read during the reading session.

➢ Students create portfolios of world events/policies/trade issues

➢ Deep discussion on the above materials develop analytical and evaluative skills using

knowledge learnt

➢ At the end of the term, the portfolios will be graded in the structural assessment

3.4 Learning about our home country

➢ Extensive reading for special topics related to our home country

✓ Greater Bay Area

✓ The Belt and Road Initiatives

✓ US-China Trade Wars

✓ Current Development Opportunities

✓ Special Achievements

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3.5 Scaffolding in learning

Topics in Economics are very closely interrelated. Pre-requisite knowledge is very

important basics on which higher level knowledge is built. Learning Economics is a series

of logic flow discovery. This subject is very suitable for learning by scaffolding.

“Questions and answers” is the main teaching and learning technique used. Instead of

give lectures, a huge number of questions are thrown at students. Learning in this way is

very tiring for students, but the knowledge retention rate is substantially higher than

sitting back and listen.

Throughout the year, the following strategies are extensive used to take advantage of

scaffolding learning:

➢ Show and tell

➢ Tap into prior knowledge

➢ Give time to talk

➢ Pre-teach reading

➢ Use visual aids

➢ Pause, ask questions, pause, review (Alber, 2014)

3.6 Thinking like an economist

➢ At the end of every cycle, a student will be invited to raise questions related to

Economics that they encounter in their daily lives or watch/read in news. Other

students have to help in providing an answer and solving their queries. Students have

to apply the knowledge learnt in analysing/evaluating the cases concerned. Teacher

gives comment as conclusion of the question raised. Questions raised include, but

not limited to the following:

✓ Why did the Macau SAR Government start the Wealth Part-taking Scheme?

✓ Will Macau’s retail market die if suppliers if TaoBao offer free shipping for

deliveries to Macau?

✓ Is the Electronic Consumption Card effective in increasing consumer spending in

Macau?

✓ Leakage occurs in Wealth Part-taking Scheme but not for Electronic Consumption

Card. Is it true?

✓ What will happen to Macau if Hong Kong dollars is no longer pegged with US

dollars?

✓ Can Macau be the next financial centre in Asia, replacing Hong Kong?

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✓ The Macau SAR Government often promotes the idea of “diversified economy”.

What other industries in Macau could strive if the gaming industry dies?

✓ Who will win the trade war? US or China?

✓ Are we competitive enough in the Greater Bay Area?

✓ Should students enjoy the status of a customer as in other service industry?

✓ What really happen

➢ Observe different economic propositions/phenomenon presented in movies and TV

shows. Encourage students “find” Economics in fictions and non-fictions.

✓ In Time: when time is used to replace money

✓ Liar Game: numerous games that help students learn game theory and

formulation of strategies

✓ Parasite: the gap between the rich and the poor

3.7 Formative assessment

Formative assessment is used in the design of teaching and learning of the subject. It

would be discussed in detail in the “Assessment” part of this document (Section B.5).

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4. Teaching Focus and Difficult Points

Teaching focus of the subject for F5 level is already laid down in learning objectives part. There

are two main sections: Government and the Economy, and the Global Economy. (Please refer

to section 1.1 for details)

Learning the knowledge points are not that difficult for students, using them are. A lot of

teaching effort is put in class on the following:

➢ Help students develop the ability to weigh the pros and cons (possible and negative

impacts) of government policies and economic phenomenon. Everything has two sides.

There is no absolutely best choice or situation.

➢ Help students link up and consolidate all the knowledge learnt into the huge mechanism

of Economics. Students have to be able to explain these linkages in a logical and organized

manner.

➢ Getting students ready for taking Pearson Edexcel IGCSE Economics. Students have to learn

the various answering techniques in order to score well. These techniques include usage

of proper economic terminology, illustration of concepts, meaningful elaboration, writing

in context and evaluation. Past papers questions are regularly given to students as class

practices and homework to them familiar to the question presentation. More importantly,

students will be shown the suggested answer as well as well-written answers of their peers

so that they can learn bit by bit.

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5. Assessment

In the academic year 2019-2020, our school is undergoing a reform in assessment methods.

The proportion of marks taken up by summative assessments (tests and exams) is significantly

reduced. Formative assessments are encouraged to take different forms. The aim of this

reform is to (1) lessen students from the pressure of taking too many tests, (2) increase

teaching and learning time and (3) utilize assessment as a tool for learning.

In the design of teaching and learning of F5 Economics, several assessments are given:

(1) Exam (only in the first term)

(2) Tests (originally two per term; due to school suspension from February to April,

assessment taking the form test is reduced to one time in the second term)

(3) Class practices (3-4 times per term) in the form of:

➢ Regular class practices

➢ Mind-mapping

➢ Electronic poster

(4) Structural project (one structural project per term; broken down into 5 tasks; due to

school suspension, the structural task originally planned in the second term is cancelled)

➢ A study on economic growth, inflation, unemployment, current account and

government policies of an assigned country (please refer to appendix 1 for details)

➢ A study on the US-China Trade War (cancelled)

(5) Homework (4-5 times per term)

➢ Case studies

➢ Past papers drilling

(6) Class participation (continuous)

➢ Sharing in class

➢ Group discussion

(7) Other assessment tools (continuous)

➢ Google form exercises

➢ Kahoot! check-up exercise

Assessments, short or long, are planned in all lessons. Students’ progress is constantly checked

by these assessments. Teacher can know the students’ situation immediately and make clarify

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and adjustment right away. It also gives a feeling to students that learning should not be put

off until before tests and examinations. They have to learn the topic during the lesson.

Apart from tests and exams, students are allowed to work together in most assessments. We

believe that students learn best when they teach others. We also believe that giving a students

a low grade is not as effective as let them get a higher one with the assistance of others. This

also gives another dimension to the collaborative learning arrangement.

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6. Teaching Aids

Teaching aids used in teaching the subject includes, but not limited to, the following:

➢ Regular teaching aids

✓ Textbook – Edexcel International GCSE (9-1) Economics by Pearson

✓ Powerpoint slides for each chapter

✓ Worksheets for class practices

✓ Worksheets for homework

✓ Reading materials (paper and electronic)

✓ Different websites for data and information extraction

➢ Interactive presentation/collaboration tools

✓ AirSketch Pro

✓ Zoom meeting app

✓ Explain Everything

➢ Platform for document sharing and information dispersing

✓ OneDrive shared folder

✓ Google Classroom platform

➢ Interactive assessment tools

✓ Kahoot! check-up exercise

✓ Google form exercise

➢ Technical support

• iPads for each student (in some activities)

➢ Multimedia resources

• Movie – In Time

• Movie – Liar Game: The Final Stage

• Videos downloaded

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7. Information Technology Application

7.1 Interactive assessment tools

Kahoot! is a game-based learning platform. It enables learning with engagement and

fun. Students participate in the exercise with iPads provided by the school. During

game play, students are tense and excited. It is like a competition among the peers.

After each question, the number of students choosing each option is displayed on

screen. Common misconception can be spotted immediately. Students can also re-

attempt wrongly answered questions at home.

Google forms are used as a tool for check-up exercise. It has a built-in function to

create the form as a quiz, bearing marks for each question. It also gives statistics about

common mistakes. The google form is less exiting for students, but it offers more

question types and is more suitable to higher level questions.

We use both tools extensive in teaching and learning. We usually give Kahoot! exercise

as quick check-up during class, while assign google form check-up exercise to be

completed at home for more advance questions.

7.2 Interactive presentation/collaboration tools

The AirSketch Pro app is used in regular class presentation by the teacher. It is a simple

write-and-show presentation tool that enables real-time projection to any computer

screen using an IP address on any internet browser. Powerpoint slides can be imported

into the app for presentation. The tool is better than a traditional PowerPoint

presentation because the teacher can quickly mark any notes on the iPad for

simultaneous projection without being locked to the computer (usually positioned in a

distance from the screen). The teacher can stay at any position in the classroom and

can still switch to another slide or mark down any comment. Student’s participation is

also encouraged as they can also stay in their seat and write answers on the iPad.

During the school suspension period, online lessons are conducted through the Zoom

meeting app. The free account has limited functions. But is it enough for short term

use. Teacher and students can speak to each other, with their face shown on screen.

Participants are share documents or even their screen with others. Notes can be taken

on the screen. The app even has a “hand raising” function. Indeed, teaching via Zoom

resembles teaching in classrooms, only that participants are not physically in the same

place.

Explain Everything is also a very nice app for collaborative learning. In my lesson, I have

not been using it a lot. But more possibility of it can be explored in the coming year.

The app provides a platform where students can participate in real-time collaboration

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on iPads. It can somehow replace the JAGSAW arrangement we extensively use during

lesson.

7.3 Platform for document sharing and information dispersing

During the school suspension period, the school use OneDrive as the official file sharing

and homework submission platform for online learning. Teachers put learning materials

and students put works to be handed in. OneDrive is easy enough for all teachers,

students and parents. But there are limitations on the use of it.

Google Classroom is the preferred platform, which I use with students regularly. It

serves the same function of dispersing information and share documents. Student can

do the sharing as well. Participants can comment on the information posted. The

“assignment” function enables setting and announcing of assignments, tracking of on-

time and late submission, as well as marking and giving feedbacks. Google Classroom

would be a good platform to deal with the different tasks in the structural projects. All

the works submitted and returned are kept in good condition. All adjustments are

properly shown and made available for a related parties.

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8. Emotional Attachments to Home and Country

Throughout the lessons, emphasis is made on the link between the subject and real life.

Students have to learn about the economic policies of Macau and China and evaluate the

effect of such policies.

International trade is a hot topic in recent years. Learning tasks are designed to investigate in

depth into the dynamics of the trade war between China and the US.

Extensive reading for special topics related to our home country

➢ Greater Bay Area

➢ The Belt and Road Initiatives

➢ US-China Trade Wars

➢ Current Development Opportunities

➢ Special Achievements

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C. Teaching Schedule

Topic Macroeconomics No of students 27

Level Form 5 Total no of periods 88 (44 double periods)

plus 12 weeks of

online teaching during

school suspension

Duration September 2019 to July

2020

Time per period

(mins)

40

Subject Economics No of periods per 6-

days cycle

4

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Date Theme Topics

Cycle 1 Sep 3 – 11 Lesson 1-4

Introduction ⚫ General information

about the course

Macroeconomic Objectives

➢ Prepare students the syllabus and the requirement of the IGCSE 9-1 Economics

➢ Identify their strengths and weaknesses through sharing experience

➢ Distinguish between Microeconomics and Macroeconomics

➢ Identify the six Macroeconomic objectives

Cycle 2 Sep 12 – 19 Lesson 5-8

Ch.25 Economic Growth

➢ Explain Gross Domestic Product as a measurement of economic growth

➢ Identify the limitations of GDP as a measure of growth

➢ State the different phases of business cycle and explain how the business cycle may affect the inflation and unemployment

➢ Discuss the impacts of economics growth on employment, standards of living, poverty, productive potential, inflation and the environment

Cycle 3 Sep 21 – Oct 3

Lesson 9-12

Discussion of Structural Project Ch. 26 Inflation

➢ Instructions of Structural project

➢ Introduce the concept of inflation and deflation

➢ Outline how inflation is measured

➢ Delve into the two main causes of inflation: - Demand-pull - Cost-push

➢ Describe the relationship between interest rates and inflation

Cycle 4 Sep 30 – Oct 10

Lesson 13-16

Ch. 26 Inflation Ch. 27 Unemployment

➢ Know how inflation and deflation affect prices, wages, exports, unemployment,

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menu costs, shoe leather costs, uncertainty business confidence, consumer confidence and investment

➢ Outline how unemployment

is measured ➢ Understand the different

types of unemployment; cyclical, structural, seasonal, voluntary and frictional

Cycle 5 Oct 11–23

Lesson 17-20

Ch. 27 Unemployment Ch. 28 Balance of payments on the current account

➢ Describe the impact of unemployment on: - output - use of scarce resources - poverty - government spending on

benefits - tax revenue - consumer and business

confidence - society

➢ Define the current account ➢ Distinguish between current

account deficits and surpluses; visible and invisible trade

➢ Analyse the reasons for deficits and surpluses: quality of domestic and foreign goods, prices of domestic and foreign goods, and exchange rates between countries

Cycle 6 Oct 24-31

Lesson 21-24

Test 1: Chapter 25-27 Ch. 28 Balance of payments on the current account

➢ Describe the relationship between the current account and exchange rates

➢ Discuss the impacts of a current account deficit on - Leakages from the

economy - Inflation - Demand for domestic

exports - Deficit funding

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Cycle 7

Nov 1–8 Lesson 25-28

Ch. 29 Protection of the Environment Ch. 30 Redistribution of income

➢ Identify the business activity that damages the environment

➢ Explain the ways that businesses damage the environment

➢ Define income inequality,

absolute poverty and relative poverty

➢ Explain different tools to measure income inequality

➢ Understand the current situation around the globe on income inequality and poverty

➢ Analyse the reasons for reducing poverty and inequality

Cycle 8 Nov 11–18

Lesson 29-32

Ch. 29 Protection of the Environment Ch. 30 Redistribution of income

➢ Analyse the government intervention to protect the environment

➢ Learn the government intervention used to reduce inequality and poverty: progressive taxation, redistribution through benefits and investment in education and health care

Cycle 9 Nov 19–26

Lesson 33-36

Ch. 29 & 30 Continued Ch. 31 Fiscal Policy

➢ Develop strategies and skills in answering evaluation type questions

➢ Describe the meaning of

fiscal policy ➢ Identify the nature of ➢ Clarify the difference

between fiscal surplus and fiscal deficit

➢ Delve into the impact of a fiscal deficit and fiscal surplus

Cycle 10 Nov 27 –

Dec 4 Lesson 37-40

Ch. 31 Fiscal Policy

➢ Explain the nature of government expenditure: main area of focus

➢ Explain different types of taxes: direct vs Indirect;

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proportional, progressive vs regressive

➢ Analyse the impact on different types of taxation

➢ Analyse the possible impact of fiscal policies on macroeconomic objectives

Cycle 11 Dec 5–12

Lesson 41-44

Test 2: Chapter 28 - 31 Ch.32 Monetary Policy

➢ Define of monetary policy and interest rates

➢ Explain the role of central banks in setting interest rates

Cycle 12 Dec 13 –

Jan 3 Lesson 45-48

Ch.32 Monetary Policy ➢ Analyse the impact of changes in interest rates on macroeconomic objectives and how consumers and businesses are affected

➢ Explain the use of asset purchasing by central banks

➢ Understand money supply ➢ Discussion of the final task

for the structural project

Cycle 13 Jan 6–9

Lesson 49-50

Revision

➢ Revisit the previous concepts learnt in lessons

➢ Identify the common mistakes students made in quizzes and tests

FIRST TERM EXMINATION

➢

School Suspension Started

Week 1 4-7 Feb

Reading about Supply-side Policy

➢ Read materials about Supply-side policies

➢ Company supply and demand side policies

Week 2 10-14 Feb

Supply-side policies

➢ Define supply side policies ➢ Analsye the impact supply

side policies have on productivity and total output

➢ Explain the impact of supply side policies on macroeconomic objectives: privatization, deregulation, education and training, regions, infrastructure, business taxes and income

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taxes

Week 3 17-21 Feb

Globalisation

➢ Watch videos on gloablisation ➢ Identify the features of

globalisation and explain the global trend of increasing interdependence between countries

➢ Explain the causes and effects for globalization

➢ Assess the possible impact to the economic stakeholder

Week 4 24-28 Feb

Exam Corrections Policy Analysis

➢ Visit the website of gov.mo

and read through the list of economic measures to recover the economy after epidemic COVID-19.

➢ Choose an economic measure and write its expected impact on macroeconomic objectives according to guidelines given.

Week 5 2-6 Mar

Globalisation Multinational companies (MNCs) and foreign direct investment (FDI)

➢ Development on knowledge about features, reasons and impact of globalisation on different economic stakeholders

➢ Brush up on skills in attempting evaluation type questions

➢ identify the characteristics and give proper examples of multinational companies in HK or Macau

➢ Define and distinguish foreign

indirect investment and foreign direct investment

➢ Explain the reasons for the emergence of MNCs/FDI

➢ Explain the pros and cons of MNCs/FDI

Week 6 9-13 Mar

MNC and FDI

➢ Explain the reasons for the emergence of MNCs/FDI

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➢ Evaluate the benefits of MNCs/FDI brought to a country

Week 7 16-20 Mar

MNC and FDI International trade

➢ Consolidate on the knowledge learnt about MNCs and FDI

➢ Interpret the FDI data as percentage of GDP and its significance to the economy

➢ Understand Macau’s FDI level and its components

➢ Evaluate the benefits of MNCs/FDI brought to a country

➢ Explain the reasons for

international trade and give examples

➢ Identify the advantages and disadvantages of free trade to the markets

Week 8 23-27 Mar

International Trade Protectionism

➢ Explain the theory of absolute and comparative advantages

➢ Recognise that world output can be increased by the use of comparative advantage in trading

➢ Identify the mutually beneficial terms of trade

➢ Evaluate the advantages and disadvantages of free trade to a country

➢ Define and explain the meaning of protectionism

➢ Explain the reasons and methods for protectionism

Week 9-10 30 Mar – 8 Apr

Protectionism Trading blocs

➢ Define and explain the meaning of protectionism

➢ Explain the reasons and methods for protectionism

➢ Draw the supply-demand diagram on the effects of a tariff, quota, and subsidy on protectionism

➢ Explain the problems brought by protectionism

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➢ Evaluation on benefits on reducing tariffs to home country

➢ Define and identify the type

of trading blocs ➢ Give examples of the trading

blocs ➢ Assess the pros and cons of

countries joining the trading blocs (including member and non-member of the blocs)

Week 11 20-24 Apr

Trading blocs

➢ Explain the main aim of trading blocs in general

➢ Define and explain different types of trading blocs

➢ Assess the pros and cons of countries joining the trading blocs (including member and non-member of the blocs)

Week 12 27-30 Apr

Reading "Trump says immigration order will apply only to green cards and will last 60 days"

➢ Be aware of happenings around the world

➢ Understand the forces that affect government policies

➢ Build up skills in evaluating government policies from different perspective

School Resumption

Cycle 10 4 May – 5 May Lesson 51-52

Discussion on arrangement after school resumption

➢ Discussion on the adjustment in syllabus and lesson time

➢ Arrangement about assessment changes

Cycle 11 6 May – 14 May

Lesson 53-56

Discussion on reading materials Recap the topics and concepts learnt during the school suspension period Trading blocs

➢ Be aware of happenings around the world

➢ Understand the forces that affect government policies

➢ Build up skills in evaluating government policies from different perspective

➢ Recap the topics and concepts learnt during the school suspension period

➢ Explain the main aim of

trading blocs in general

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➢ Define and explain different types of trading blocs

➢ Assess the pros and cons of countries joining the trading blocs (including member and non-member of the blocs)

➢ Understand the trading blocs RCEP, COMESA, SAFTA and Mercosur

Cycle 12 15 May – 22 May

Lesson 57-60

Ch. 40 The world Trade Organisation and world trade pattern

➢ Compare the trend in international trade between developed and developing countries

➢ Justify the reasons why world trade has increased enormously

➢ Briefly introduce the history of GATT and WTO

➢ Explain the roles and functions of WTO

➢ Analyse some of the criticisms against WTO particular those from pressure group

Cycle 13 25 May – 1 Jun Lesson 61-64

Ch. 40 The world Trade Organisation and world trade pattern

➢ Understand the function of the WTO in settling trade dispute through looking in the cases it handled in the past

Cycle 14 2 Jun – 9 Jun Lesson 65-68

Ch 41. Exchange rates and their determination

➢ Define and quote the exchange rates against basket of currencies for reference

➢ Recognise the value of the currencies is determined by demand-supply interaction

➢ Explain the factors affecting demand and supply of a currency

➢ Use the demand supply diagram to show the effect of a change in demand and supply of a currency on exchange rate

Cycle 15 10 Jun - 17 Jun Lesson 69-72

Test 1 Ch 41. Exchange rates and their determination

➢ Distinguish and explain different exchange rate systems

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➢ Understand the recent phenomenal of the depreciation of RMB against US as a result of US-China trade war

➢ Understand Hong Kong’s Currency Battle during 1998 amid the Asian Financial Crisis

Cycle 16 18 Jun – 1 Jul

(6 periods) Lesson73-78

Ch. 42 Impact of changing exchange rates Supplementary topics: Movie – In Time

➢ Describe how exchange rate changes, either driven by market or government

➢ Explain the difference between revaluation/devaluation and appreciation/depreciation

➢ Assess the impact of exchange rate appreciation and depreciation on the current account

➢ Evaluate the government policies and its limitation in controlling the exchange rate

➢ Examine the role of PED and YED on the exchange rate and current account balance

➢ Calculate and convert exchange rates

➢ Draw the demand supply diagram to show the appreciation and depreciation of a currency

➢ Assess the impact of exchange rate appreciation and depreciation on the current account

➢ Explain the functions money

in our modern economy ➢ Identify the factors affecting

the distribution of wealth

Cycle 17 2 – 9 Jul

Lesson 79-82

Supplementary topics: Movie – In Time Supplementary topics: Consumer and Producer Surplus

➢ Explain the functions money in our modern economy

➢ Identify the factors affecting the distribution of wealth

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➢ Understand the meaning of consumer and producer surplus

➢ Identify the factors affecting the size of consumer and producer surplus

➢ Explain the change in consumer and producer surplus when there is a change in price

Cycle 18 10 – 24 Jul

Lesson 83-86

Supplementary topics: Game Theory

➢ Understand as an introduction what Game Theory is

➢ Participate in a game and understand the difficulties of making decisions under different forces

➢ Understand the concept of optimal strategy

➢ Explain that game theory is a theoretical framework for conceiving social situations among competing players

➢ Know the basic assumptions of game theory: all agents are rational and will strive to maximize their payoffs

Cycle 19 27 – 30 Jul (2 periods)

Lesson 87-88

Supplementary topics Game Theory

➢ Different settings of game-play in game theory: simultaneous/sequential; one-off/indefinite; zero-sum/non zero-sum; two/multiple players, etc

➢ Apply the strategies to real-world scenarios such as pricing competition and product releases

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D. School Suspension and Online Learning During the Chinese New Year holiday, the Education and Youth Affairs Bureau announced the

suspension of schools with no clear resumption timeline. At the same time, the Bureau

instructed school to start online teaching and learning. Specific arrangements are described

in detail along the detailed lesson plans section (please refer to section E.26 and E.39).

During online learning, the teaching partners find it as a good opportunity to train students

to read for details and make useful and meaningful summary note. Students are given

guidance and examples to help them acquire the technique.

Much teaching and learning time is lost during this period. Although it is compensated by

the prolonged school period in July, discussion and development time of each topic has been

substantially reduced.

Another structural project was originally planned in the second term. If it has been carried

out, I would be an in-depth study of the US-China Trade War. Nevertheless, the structural

project was replaced by a number of reading materials with questions and answers. This

adjustment was made to avoid giving too much burden to students after school resumption,

as well as reducing the need for students to meet up and gather to work out the tasks.

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E. Detailed Lesson Plans

1. Lesson 1-2

Date 4 September 2019 Lesson 1-2

Topic General introduction of the subject

BAA -

Learning Objectives

➢ Understand the general requirement of the

subject for this year

➢ Recap of all topics learnt last year

Difficult points

➢ Not applicable

Teaching Strategies

General introduction

➢ Welcome students to the class and start the lesson with this sentence:

“Economics is the study of choices.”

➢ Comment that we face choices every day because resources are limited. If it is not

limited (unlimited time, money, raw materials, etc), there is no need to make choices.

We can simply have it all.

➢ Mention that how much we can learn in our coming lessons is the collective choices

we are going to make together.

Recap of last years’ topics

➢ Without referring to the book, invite students to come to the board and draw

together a mind map of what they have learnt last year. Ask them to write all the

topics that that remember.

➢ Assist students in grouping the topics and present them in the form of a mind map.

➢ After the mind map is finished, go back to each of the points on the board.

➢ Invite students to use one sentence to briefly explain each item on the board. Ask

students to help each other with this exercise. Assist them with guiding questions if

they cannot explain some of the points properly.

Arrangement of groups

➢ Obtain the performance of students on the subject from the teacher of last year.

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➢ Group students according to their ability. Each group should have students who are

strong in the subject, mid-range in the subject and weak at the subject.

➢ Ask students to share among themselves, the topics of last year that they like best,

and one they dislike most.

Assessments

➢ Show students the types of assessment we will use for the subject in the current year,

and the contribution of each part towards the final grade.

✓ Examination 40%

✓ Tests 30%

✓ Class Practices 7.5%

✓ Structural Project 7.5%

✓ Homework 10%

✓ Class Participation 5.0%

➢ Most marking in examination and tests will be done according to the criteria listed

out in Pearson Edexcel IGCSE Economics.

➢ The structured Tasks will be a term-wide project where parts are to be submitted

throughout the term.

Sundry Information

➢ Students are encouraged to look at everything like an economist. At the end of each

lesson, students will be picked to give a class one question to consider and bring back

next time.

➢ This question should be econ-related. It would be best if it is something students

observed in their daily life but do not understand its economic explanation.

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2. Lesson 3-4

Date 9 September 2019 Lesson 3-4

Topic Macroeconomic Objectives

BAA C-5

Learning Objectives

➢ Distinguish between Microeconomics and

Macroeconomics

➢ Identify the six Macroeconomic objectives

Difficult points

➢ Not applicable

Teaching Strategies

➢ Ask students, “How do we judge if a government is doing a good job in managing the

economy?”

➢ Give students time for group discussion. Ask them to write down their answers and

then share their opinion in class.

➢ Students should be able to at least mention that (1) unemployment should be kept

low, (2) there is surplus in the government’s budget, (3) people should be able to

afford housing and other essentials of life, (4) support those who are poor, etc.

➢ Give comments on their ideas. Students might give answers that are not directly

relevant to the economy. Let students share these points first without judging these

points at the moment.

➢ Mention that there are specific areas in the economy that a government should focus

on in their policies. And these areas are universal. To judge is the economy is

managed well, we have to look at each of these areas. They are called

“Macroeconomics Objectives”.

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➢ Show students the SIX macroeconomic objectives as below.

➢ Ask students if there are any macroeconomic objectives that they do not understand.

They probably have doubt on what current account is. Current Account is about

international trade. It is the balance of exports net of imports.

➢ Mention that these are just the areas. Ask students to suggest what the government

should strive for under these areas. For instance, for economic growth, the

government should strive for aim at higher economic growth. It should design its

policy to “promote economic growth”.

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➢ Ask students should fill in the other parts. Check the answer with students after they

have finished.

➢ Discussion with students the importance of the government working on the

appropriate direction of the objectives.

➢ Investors and home owners want the real estate market to thrive. People gain money

in buying and selling of real estate. However, uncontrolled housing prices add burden

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to people’s living. If the government does not see controlling prices to be important

and even encourage speculation, the whole economy will suffer from an overall sharp

increase of prices for everything.

➢ Ask students to explain from the perspective of a health economy why the

government should promote (1) protection of the environment, (2) reduction in

unemployment and (3) income equality. Possible answer may include:

✓ (1) Protection of the environment → sustainability of resources

✓ (2) Reduction in unemployment → avoiding lost productivity

✓ (3) Redistribution of income → correction of large gap between rich and poor

➢ Comment that our focus is on the economy. There might be points that are important

but irrelevant to the “economy”. However, note that a great majority of government

policies are still ultimately related to the economy.

➢ Show students the following policies by the Macau SAR Government. Ask students to

match these policies to the corresponding macroeconomic objectives.

➢ Revisit the difference between microeconomics and macroeconomics. Tell students

that they have learnt the basic mechanism of economics last year. In the current year,

they are going to expand and apply what they have learnt to a broader use.

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3. Lesson 5-6

Date 13 September 2019 Lesson 5-6

Topic Economic Growth (1)

BAA C-7

Learning Objectives

➢ Explain Gross Domestic Product as a

measurement of economic growth

➢ Identify the limitations of GDP as a measure of

growth

Difficult points

➢ The 3 approaches of calculating

GDP

Teaching Strategies

➢ Introduce the topic of today’s lesson as economic growth.

➢ We often heard or read news about “rapid economic growth”, “economic growth

slows down” or “there is a decline of the economy”. Ask students what those phrases

mean.

➢ If students are not able to give specific answers, ask them “how do we measure

economic growth for a country/economy?”

➢ Comment that the measurement should be universal so that we can compare the

growth of different countries.

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➢ Introduce the universal measurement as Gross Domestic Product (GDP). Explain what

GDP is.

➢ GDP is the sum of the market value of all production of final goods and services in a

country/city.

➢ Show the pictures to the class. Assume that the whole production process in the

picture shown takes place in a country, what is the amount to be included in GDP?

➢ The answer is $2,000 only. Comment that GDP only include the value of the final

product because it is made up of a series of “value added” in the whole process.

➢ Farmer: $100 for the harvest of cotton; cloth factory adds $400 in value; jean factory

adds $500 in value to make cloth into jeans; boutique adds $1,000 for the service of

distribution and sales. All added up make the total value of the final product of

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$2,000. This is also the amount of money a customer spends of the pair of jeans.

➢ As illustrated in the example above, total production can be calculated using three

approaches. The income approach, the expenditure approach and output approach.

➢ Going back to the picture showing the production of jeans, ask students, what if the

cloth is indeed brought from another country?

➢ Students should answer that if the cloth is not produced at home, the production of

such should not been included in GDP. Only $1,500 should be included. That is why

GDP would include the amount of exports (produced at home but consumed

elsewhere) and exclude the amount of imports (produced elsewhere but consumed

at home).

➢ Present to students the GDP of Macau from 2000. It amounts to around MOP$434,000

million in 2019 (約四千三百四十億澳門幣). It is a 700% increase from MOP$54,000

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million in 2000.

➢ Back to our first question at the start of the lesson. Ask students again what “rapid

economic growth”, “economic growth slows down” or “there is a decline of the

economy” means.

➢ Invite students to share their answer.

➢ It is very important for students to understand that if we compare the GDP of Macau

and GDP of China, there is no meaning. The two economy is very different in size and

its composition is also very distinctive.

➢ That’s why when we compare growth, what we are comparing is indeed the GDP

growth rate.

➢ Show students that GDP and GDP growth rate of Macau put together in a graph. We

can see that in 2009, 2011, 2014 and 2018, although GDP is still growing, the growth

rate drops (slowing down).

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➢ GDP as a measure of growth is being used worldwide. Yet it is not without its

limitations. For some of the limitations, we can use alternative measurement to

supplement and overcome; for others we have to accept that will always be

discrepancies and we can only hope that it is not significant.

➢ Show students the list of limitations. Each group will be assigned one point. In the

first phase, they have to read the textbook about that limitation. Students in the

group should write down a brief explanation (1-2 sentences) and a few examples for

their assigned limitation.

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➢ Teacher can help students in this phase to make sure students have the correct

concepts of the different limitations.

➢ In the second phase, students go into groups of 7 (4 large groups), with each group

consisting 7 students working on different limitations. Students would share what

their assigned point is about and make sure all students in their group understand

fully all limitations. [JIGSIW arrangement]

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4. Lesson 7-8

Date 18 September 2019 Lesson 7-8

Topic Economic Growth (2)

BAA C-7

Learning Objectives

➢ State the different phases of business cycle

and explain how the business cycle may affect

the inflation and unemployment

➢ Discuss the impacts of economics growth on

employment, standards of living, poverty,

productive potential, inflation and the

environment

Difficult points

➢ Identification of the correct

stage of economic cycle when

the characteristics do not

perfectly align

Teaching Strategies

➢ Recap of what is learnt about economic growth in the previous lesson. Students are

invited to name the limitations of using GDP as a measure of economic growth.

➢ Comment that Macau has been experiencing a period of very high growth after the

liberalisation of the gaming industry. There is a 700% growth from 2000. China also

have a double figure growth for many years.

➢ However, growth cannot sustain forever. There are times of rapid growth and there

will be times where growth slows down. We can observe that growth usually makes a

pattern of ups and downs. We call it the economic/business cycle.

➢ Show the usual look of the economic cycle to students.

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➢ Comment that there are 4 stages in an economic cycle: Boom, downturn, recession and

recovery. The recovery stage is shown in the picture. Ask student to label the other

three stages on it.

➢ Ask students to notice that although there are ups and downs in the economic cycle,

an economy generally has a long-term upward growth trend. It corresponds to our

universal experience that overall speaking, we are all better off than in the past, say 10

years ago.

➢ Go through with students the characteristics of the 4 stages of economic cycle.

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➢ Ask students if it seems to be too much information to remember. Comment that the

economy is a huge mechanism with different factors affecting it. But ultimately, it

comes down to just a few drivers.

➢ Notice that a few items keep appearing in the characteristics.

✓ Demand drives business activities

✓ Business activities drives growth and employment

✓ Growth drives employment and confidence

✓ Employment drives demand and inflation

✓ Inflation drives growth

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✓ Confidence drives demand

➢ All countries strive for economic growth. There are different impacts of economic

growth, most positive. Ultimately, growth should mean higher standard of living for

citizens.

➢ This part should be quite straight forward. Ask students to read the pages and make

their own summary note. Show well prepared summary notes of students to the class

as reference.

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➢ Comment that the ultimate effects of economic growth depends on how well the

government controls the negatives aspects of growth. For instance:

✓ Rapid growth drives price up: income level cannot keep up with prices → loss in

purchasing power

✓ Income inequality: the benefits of economic growth can be inclined towards the

rich only → general public do not enjoy benefits but suffer from inflation

✓ Deforestation and pollution: countries with important natural resources may

enjoy high level of growth in the expense of the environment.

➢ The government should have laws and policies to balance the benefit of growth with

equality and sustainability. There are ample examples of developing countries being

exploited by developed countries in the hope to grow.

➢ In groups, invite students to draw a table to summary the characteristics of the 4

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stages of economic cycles. The different aspects in the first column are given as

guidelines. Check the answer together after they have completed.

➢ Ask students to participate in a Kahoot! check-up exercise for consolidation on the

characteristics of different stages of the business cycle. Clarify points of common

mistakes and misconception in the process.

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➢ Ask students to work on the supplementary exercise at home as consolidation.

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5. Lesson 9-10

Date 23 September 2019 Lesson 9-10

Topic Information session about Structural Task

BAA -

Learning Objectives

➢ Research on the macroeconomic performance

of the assigned country

Difficult points

➢ Identify creditable sources for

the research work

Teaching Strategies

➢ Ask students to go to sit with their group members.

➢ Explain detailed requirement of the 1st task of the structural project.

➢ Provide an example how the 1st Task of the structural project should be like. The

example is about economic growth in Hong Kong.

➢ Students are guided on how to produce a proper line chart using Excel Spreadsheets.

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➢ It is also important for students to cite the source of their information.

➢ After showing the example, we will determine the country assigned to each group by

lucky draw.

➢ Explain to students that the aim of the project is to let students apply what they have

learnt in lessons to the real world. It is a pity if we know the concepts but can never

apply to situations we see and read on news. Using knowledge we acquire in

Economics requires practice.

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➢ The groups can then start on their research work.

➢ Guidance and assistance is to be given to students to make sure that they are on the

right track.

➢ Students are expected to finish working out the chart by the end of the lesson.

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6. Lesson 11-12

Date 26 September 2019 Lesson 11-12

Topic Inflation (1)

BAA -

Learning Objectives

➢ Introduce the concept of inflation and

deflation

➢ Outline how inflation is measured

➢ Explain into the two main causes of inflation:

✓ Demand-pull

✓ Cost-push

➢ Describe the relationship between interest

rates and inflation

Difficult points

➢ Identify the most direct cause

of inflation from case studies

Teaching Strategies

➢ Introduce our topic for today as “Inflation”.

➢ Ask students, “Is inflation good or bad?”, “Do you like inflation?”

➢ Let students discuss in groups and invite them to share their answer.

➢ Students may say that they do not like inflation as they will lose purchasing power.

They may also conclude that inflation is not good.

➢ Do not comment on their sharing yet.

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➢ Ask the next question: what is inflation?

➢ Students may answer “prices increase”.

➢ Ask students, “the price of new iPhone increase from $9,000 to $10,000, is it inflation?”

➢ Let students discuss and share their opinion. They may ultimately conclude that if it is

just the increase in price of one product, it is not inflation.

➢ Show students the definition of inflation as “a sustained increase in the general price

level.”

✓ The increase should not be temporary or seasonal

✓ It should be a general increase → most products and services

➢ Ask students “is it possible to have a “a sustained decrease in the general price level?”

➢ Show the definition of deflation.

➢ Ask students how the general price level is measured, as there are so many different

products and services in the economy.

➢ Introduce CPI as a measure of general price level.

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➢ Show students statistics on Inflation in Macau. Discuss if Macau has a high level of

inflation.

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➢ Ask students “why is there inflation?”.

➢ Comment that we see price level generally goes up, rather than going down in the

long run. Ask students to guess the reason.

➢ Let students share among themselves and share their opinion.

➢ Shows students that there are two main causes of inflation: demand pull inflation

and cost push inflation.

➢ Introduce what demand pull inflation is. It corresponds with what we learn about

demand. When demand goes up, price goes up.

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➢ Aggregate demand is the total demand in the economy. It is the sum of all demand in

an economy, including the demand of local consumers, demand of foreign investors,

demand for government, demand for exports, but net of demand for foreign goods.

➢ When people/government have higher income, there will be higher aggregate

demand. Thus, aggregate demand is determined by economic growth. When there is

growth, people have more income and would have higher demand.

➢ Give the original demand supply diagram show aggregate demand (AD) and

aggregate supply (AS). Ask students to show the increase of AD in the diagram and

the corresponding change in price level and output.

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➢ Expand the concept of an increase in aggregate demand by looking at the reasons of

increase in different components of aggregate demand.

➢ An important factor driving up demand is a decrease in interest rate. Interest rate is

usually affected by government policy. When interest rate is down, the cost of

borrowing is lower. And this encourage borrowing for consumption and investment.

Thus, AD will increase when interest rate decrease.

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➢ Introduce the concept of cost push inflation. Cost put inflation is caused by an

increase in costs. When costs increase, price increases so that producer can earn the

same amount of profit.

➢ Ask students to recall what they have learnt about the supply curve and how changes

in supply is affected by different factors. When there is an increase in costs,

producers are only willing to produce at a lower level; or are only willing to produce

at the same level if price is raised.

➢ Ask students to draw the demand supply diagram to show the changes in the AS

curve due to an increase in costs. Check with students after they have finished. They

should have an AS curve shifted upwards/leftwards to show a decrease in AS, an

increase in price level and a decrease in output.

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➢ Ask students to give a list of production cost that affects AS.

➢ Among all items listed, pick labour costs and energy costs for further discussion.

✓ Labour costs are the salaries and wages paid to labour. It is one of the main

drivers of inflation. Generally speaking, all employees expect a raise every year.

This expectation is mainly due to constant fight with inflation, and secondarily

due to the psychological need for career development. When the employees get

a raise, the cost of producers increase. Producers tend to increase prices to

cover the loss and inflation pressure is alleviated. And employees continue to

fight for pay raise. This is the main reason why general price level goes up as

time pass. There is also a concept call stickly prices. It means increased price/pay

cannot be easily reversed.

✓ Energy is needed in all production, in every stage of production, and even after

production in the distribution of final products. Companies cannot control/affect

energy prices. But as energy price is an important cost component, some

company need to hedge again fluctuation in energy prices.

✓ Show students the other reasons for cost-push inflation.

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➢ Ask students to read the article “U.S. dependence on China's rare earth: Trade war

vulnerability” (Reuters, 2019). China supplies more than 80% of US’ imports of rare

earth. Instability of special raw materials such as rare earth may drives prices up for

all production in US.

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7. Lesson 13-14

Date 3 October 2019 Lesson 13-14

Topic Inflation (2)

BAA -

Learning Objectives

➢ Know how inflation and deflation affect prices,

wages, exports, unemployment, menu costs,

shoe leather costs, uncertainty business

confidence, consumer confidence and

investment

Difficult points

➢ Evaluate the extend to which

inflation bring

benefits/drawbacks to an

economy. Weigh the

importance of different points.

Teaching Strategies

➢ Recap what have been learnt in the previous lesson about inflation. Ask students to

give the definition of inflation and the two causes of inflation.

➢ Continue the discussion in the impact of inflation. Such impact can be divided into

impacts on different aspects: individuals, businesses, the government and the

economy.

➢ It is not difficult to understand the following points. However, it is not easy for

students recognise the links among different points. For instance, when inflation

occurs, local purchasing power deterioriate. Consumers may turn to less expensive

imports, making it less profitable for local businesses, thus reducing the income for

locals. Students have to know how these links go together and evaluate the effects

for the whole economy, as well as for different sections of the economy. Students

have to practise on their ability to recognise and explain these links in attempting

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questions from public examinations.

➢ Ask students to read the textbooks and give students the summary note as shown.

Instruct students to draw a mind map on their notebook, showing the impacts of

inflation in these 4 aspects. Ask them then to put the links between the points and

identify these links with brief introduction explaining their relationship.

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➢ After the mind-map exercise, comment that a mild inflation in the economy push the

economy forward. It is healthy for an economy to have inflation, but the government

has to monitor and make sure that it is not too high.

➢ Introduce the concept of hyperinflation, whether inflation is out of control.

Hyperinflation is not a sign of great economic growth, it gives not benefit to the

economy at all. The undermines money of its functions and make the economy

unstable and unattractive.

➢ Students have to work on this exercise on inflation at home. Remind students that

they need to pay attention part (e) and write in context.

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➢ Give students instruction for the 2nd task of the structural project.

➢ To help students to start with their work, show students how to compare inflation and

economic growth on a graph. This graph uses the statistics of Hong Kong as in the

example given in the 1st task. Comment that there is no meaning of just looking at

inflation without comparing it to GDP growth rate.

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➢ Students can start with their research work with the remaining lesson time.

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8. Lesson 15-16

Date 9 October 2019 Lesson 15-16

Topic Unemployment (1)

BAA -

Learning Objectives

➢ Outline how unemployment is measured

➢ Understand the different types of

unemployment; cyclical, structural, seasonal,

voluntary and frictional

Difficult points

➢ Understand the difference of

each type of unemployment

and identify ways for the

government to reduce each

type of unemployment

Teaching Strategies

➢ Introduce the topic for today’s lesson as unemployment.

➢ Tell the class that we are going to do a survey on employment status of the family

members of our class. We are going to include all the immediate family members of

students in the class (student herself, parents and siblings only).

➢ Ask students to state the size of their family and the number of members who are

working/not working.

➢ After the numbers are collected, put the information on the screen ask students what

the unemployment rate of this group of people is. The data collected is as follows:

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Working 56

Not Working 42

Total 98

➢ Some students may simply give an answer of 43% (42 out of 98). Some other

students may have other thoughts.

➢ Ask students if the answer 43% is accurate. Ask them what other thoughts they have

about the calculation. Students’ points may include:

✓ Herself and her siblings are underage and cannot work legally

✓ Whether part-time jobs are included or not

✓ Their parents are retired/unable to work

➢ Watch the video “What is the ‘real’ unemployment rate?” by CNN Business together

about how unemployment rate should be determined.

[https://www.youtube.com/watch?v=kRE47DZGCEE]

The video should have answered most of their queries raised.

➢ Show students the definition of unemployment by International Labour Organisation.

➢ Show students the unemployment rate statistics in Macau.

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➢ After reading the definition of terms about unemployment above, ask students to

work on the classification exercise.

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➢ Check the answers with students after they have finished. Explain and clarify any

common mistakes and misconception.

➢ Show students the formulas on labour force participation rate and unemployment

rate. Briefly explain the two and discuss about the importance of labour force

participation rate to the economy.

➢ If the labour force participation rate is low, it means the economy is losing a lot of

production capacity.

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➢ Comment that we all should agree that unemployment is not good and we should try

to keep it as low as possible. Challenge the class if it is possible to have no

unemployment.

➢ Students would probably say that it is not possible. Ask them why zero

unemployment is not possible. Let students discuss in group and share their ideas in

class.

➢ Comment that although unemployment is not good in general, some types of

unemployment are worse than others. Show students this slide showing the types of

unemployment. Ask students to guess what these types of unemployment means.

Student might have difficulty about the last type, frictional unemployment. Explain

that frictional unemployment is those who are unemployed temporary as they are

switching jobs, or are waiting for the next job to commence.

➢ Ask student to suggest which type of employment is the worst and which one is not

so important. Do not give comments to students answer yet.

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➢ Go through each type of unemployment in details.

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➢ After the explanation of the types of unemployment, ask students again which type

they will consider it worst and which one is not so important/serious.

✓ Students should choose the worst being structural unemployment while the

least important being voluntary/frictional unemployment. Structural

unemployment represents the mismatch of labour skills with jobs available.

Such unemployment will not be able to be solved by itself. It involve

intervention such as vocational training or government’s policy to assist other

industries to come in to create jobs.

✓ Frictional unemployment should be short-term. The unemployed only need time

to find another job.

✓ Voluntary unemployment is a type of unemployment in question. If the person

do not want to work, he/she is not even included in the work force, and thus

should not be counted as unemployed.

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9. Lesson 17-18

Date 14 October 2019 Lesson 17-18

Topic Unemployment (2)

BAA -

Learning Objectives

➢ Describe the impact of unemployment on:

✓ output

✓ use of scarce resources

✓ poverty

✓ government spending on benefits

✓ tax revenue

✓ consumer and business confidence

✓ society

Difficult points

➢ Relate unemployment with

other macroeconomic

objectives: economic growth

and inflation

Teaching Strategies

➢ Recap on what have been learnt on the topic in the previous lessons. Ask students to

give the definition of unemployment and name the different types of unemployment.

➢ The impact of unemployment is mainly negative. Ask students to try to identify as

many impacts of unemployment as possible in their group, without referring to the

textbook.

➢ Give each group a piece of paper in different colours. Ask the groups to write their

points on the paper and cut each point into a smaller piece. They should still write as

many points as possible. When time is up, they should stop writing and cutting.

➢ Divide the board into different sections. The sections are named “individuals,

businesses, the government, the local communities and Economy”. Ask the group to

stick their cut-out papers containing impacts of unemployment to the corresponding

sections.

➢ After all groups have finished. Invite one representative from each group to review

the answer of each group. If they have doubts, ask them to circle it with chalks.

➢ As each group has their own colour, it is very easy to see which group has more

points. They will add to the excitement of the activity.

➢ Go through all the points with the class, especially those that are circled. Supplement

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students with points missing, usually including:

✓ Individuals: increased family break-ups, low self-value

✓ Businesses: burden due to redundancy fee, low employee morale

✓ The government: political risk

✓ Local communities: less fund for public services, higher crime rate, emigration

✓ The economy: loss of production capacity; loss of competitiveness

➢ Give students the notes for reference and ask them to check if we have all the points

on the board.

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➢ Students will work on a Class Practice on the topic of inflation to check their

understanding. We will go through the correct answer together after they have

finished. Explain any difficult points and clarify common mistakes and misconception.

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➢ Give instruction about the 3rd tasks of the structural project. Give comments on the

previous work collected and suggest ways to improve. Ask students to again include

GDP growth rate as a comparison with unemployment rate. Economic growth rate

should have an inverse relationship with unemployment. Ask students to particularly

try to identify this relationship.

➢

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10. Lesson 19-20

Date 22 October 2019 Lesson 19-20

Topic Balance of payments on the current account (1)

BAA -

Learning Objectives

➢ Define the current account

➢ Distinguish between current account deficits

and surpluses; visible and invisible trade

➢ Analyse the reasons for deficits and surpluses:

quality of domestic and foreign goods, prices

of domestic and foreign goods, and exchange

rates between countries

Difficult points

➢ Not applicable

Teaching Strategies

➢ Introduce the students the topic for today’s lesson is “Balance of Payments on the

Current Account”. Show students to cover page of the PowerPoint slide below and

ask students to guess what this topic is about. Students may know that it is about

international trade.

➢ Briefly explain that Balance of Payment is made up of the Current Account, the Capital

Account and the Financial Account. We are only focusing on the Current Account in

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this topic.

➢ Give students a brief explanation of the two Accounts.

➢ The current account is made up of imports and exports of goods and services, income

from investments overseas and money flowing between the government and other

organisaitons.

➢ Capital and financial accounts, on the other hand, refers to the capital movement

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between home country and overseas.

➢ Going back to current account, students know very well what international is already.

Continue the topic with what visible and invisible trade is. Ask students to give a lot

of examples to ensure that they know the difference.

➢ Countries trade because of two main reasons. It is either because the goods/services

cannot be produced in the home countries (availability), or that producing them is

substantially more expensive than buying them from overseas (competitiveness).

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➢ Ask students if they think Macau has current account surplus or deficit. Students

should realise that Macau has current account surplus.

➢ Show the current account statistics of Macau to students. Macau has current account

surplus of around MOP150 billion. Net export of services amounts to MOP$312

billion million while net import of goods amount to MOP$91 billion.

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➢ Current Account can be balanced theoretically, but in reality seldom so.

➢ As mentioned, international trade takes place because of two main reason, available

and competiveness. The reasons for having a trade surplus or deficit also depend on

availabilities and competitiveness. If there is more natural resources in a country, it

has a better change to be a competitive one too. The more competitive (quality and

price) a country is when compared to others, the higher chances for it to have trade

surplus.

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➢ One point worth noting is that the competitiveness in price can somehow be

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controlled by the policies of the government by playing with exchange rate. Exchange

rates will be learnt in the second term of this year. For now, they should know that if

exchange rate is low, the price of our exports becomes lower, thus our exports will

become more competitive. More will be discussed in the next lesson.

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11. Lesson 21-22

Date 25 October 2019 Lesson 21-22

Test 1 of the First Term

Microeconomics (prior knowledge)

Chapter 3-6 Demand and Supply

- Illustration of factors affecting supply/demand on a demand-supply diagram

- Calculation of excess demand and supply

- Understanding on the concept of equilibrium

Chapter 8-10 Elasticities

- Definitions PED, PES and YED

- Factors affecting PES

- Calculations & Interpretation of the value of PED, YED and XED

Macroeconomics

Chapter 25 Economic Growth

- Types of macroeconomic objectives

- Definition of economic growth, GDP, GDP per capita

- Calculation of real GDP and GDP per capita

- Limitations of GDP

- Economic Cycle (Diagram and Features of the 4 phases)

- Benefits and costs of economic growth

Chapter 26 Inflation

- Definition of inflation, deflation and CPI

- Causes of inflation

- Effects of inflation on Consumers, Businesses and Economy

Chapter 27 Unemployment

- Definition and measurements of unemployment

- Calculation of unemployment rate

- Types of unemployment

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- Effects of unemployment

- Relationship between unemployment rate and inflation rate

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12. Lesson 23-24

Date 30 October 2019 Lesson 23-24

Topic Balance of payments on the current account (2)

BAA -

Learning Objectives

➢ Describe the relationship between the current

account and exchange rates

➢ Discuss the impacts of a current account

deficit on

✓ Leakages from the economy

✓ Inflation

✓ Demand for domestic exports

✓ Deficit funding

Difficult points

➢ Explain the impacts of a current

account deficit according to the

context given

Teaching Strategies

➢ Recap what have been learnt on the topic in the last lesson. Ask students to

participate is a Kahoot! check-up exercise on distinguishing between visible and

invisible trade and exports and imports.

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➢ Going back to the last thing we have discussed in the previous lesson, exchange rate

affects the competitiveness of exports. When exchange rate is low, our goods are

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comparatively more attractive and we will export more. Challenge students, say “if

this is the case, we can also lower exchange rate so that we can export more. Why

don’t all countries do that?”

➢ There is a two-way effect between exchange rate and international trade. Exchange

rate affect the competitiveness in price of the our export and the attractivesness of

imports. This effect is reflected in the current account balance. On the other hand,

the effect is fed back to exchange rate itself. When more we export more and import

less, there is higher demand for our currency and exchange rate is under pressure of

appreciation. More about exchange rate and international trade will be discussed in

the second term.

➢ The graph shows the exchange rate of RMB against USD from November 2018 to

October 2019. It shows how much RMB is needed to buy 1 dollar of USD. From March

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2018 onwards, there is a significant upward swing. To buy US$1, you will pay around

RMB6.70 in March 2019, going up to almost RMB7.10 by October 2019, meaning that

RMB depreciate against USD. This might be

➢ International trade is a zero-sum game on the current account. A country’s surplus

must be from another country’s deficit. A small deficit is not a big problem, it can be

gained back in another year. However, if the trade deficit is sustained and the amount

is large, it can be quite problematic.

➢ Among all the negative effects stated, the most serious one being leakages from the

economy which ultimately leads to national debt.

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➢ Macau has a sustained trade surplus in so many years due to tourism and the gaming

industry. The huge amount of trade surplus is reflected in the rapid economic growth

Macau has experienced in these years. It is not without drawbacks. Macau has high

inflation in all areas, especially in housing and food.

➢ Give instructions to students about the 4th task of the structural project. In knowing

the make-up of the country’s main exports and imports, we can understand more

about the country’s international trade competitiveness.

➢ Ask student to also work on supplementary exercise on the topic. (Please refer to

appendix 2 for the exercise)

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13. Lesson 25-26

(Lesson 25-34 is a series of lesson specially planned of Chapter 29 and 30)

Date 4 November 2019 Lesson 25-26

Topic Chapter 29 Protection of the Environment (1)

BAA C-1, C-2, C-3, C-4, C-5, C-8

Learning Objectives

➢ Identify the business activity that damages the

environment

➢ Explain the ways that businesses damage the

environment

Difficult points

➢ Not applicable

Teaching Strategies

Before Lesson 25

➢ Students pre-read Chapter 29 Protection of the Environment (pg 229-235) [TASK 1]

Lesson 25-26

➢ Class practice in groups (40 fill in the blanks about business activities that damages

the environment) [TASK 2] (please refer to Appendix 3 for the class practice)

➢ This part of the chapter is very informational but quite straight forward. It is

important for students to know the points, but the need for teacher’s guidance is

minimal. The following areas are learnt:

➢ Correction of class practice and explanation to clear doubts.

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14. Lesson 27-28

(Lesson 25-34 is a series of lesson specially planned of Chapter 29 and 30)

Date 7 November 2019 Lesson 27-28

Topic Chapter 30 Redistribution of Income (1)

BAA -

Learning Objectives

➢ Define income inequality, absolute poverty

and relative poverty

➢ Explain different tools to measure income

inequality

➢ Understand the current situation around the

globe on income inequality and poverty

➢ Analyse the reasons for reducing poverty and

inequality

Difficult points

➢ Understand different forces in

affecting income inequality and

the fight against poverty

Teaching Strategies

➢ Play the video “Record Inequality between Rich and Poor” by OECD as in introduction

about income inequality. [https://www.youtube.com/watch?v=ZaoGscbtPWU]

➢ Give the definition of Income Inequality

➢ Ask students to brainstorm why inequality occurs

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➢ Introduce the Lorenz Curve and explain what it shows

➢ Introduce the Gini Coefficient and explain what it shows

➢ Watch the video “Top 15 Most Unequal and Equal Countries (1800-2018): by Income

Inequality (Gini Index)” from year 1900 (starting 2:46).

[https://www.youtube.com/watch?v=5nhUXDIAMoQ]

➢ Discuss the emergence of the relationship between wealth and income inequality.

➢ Ask student to brainstorm and discuss how they would define poverty. Give the hint

of the term “Absolute poverty” and “Relative poverty”.

➢ Ask students to calculate the relative poverty line of Macau.

(Median income MOP20,000 in 2019 x 40% = MOP8,000)

➢ **Ask students if they would like to have poverty and inequality reduced and share

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their ideas.

Secretly give them different identities: (1) government officials, (2) owners of big

corporations, (3) middle-class citizens, (4) citizens with low income.)

➢ Read through the textbook and find out the general reason for hoping to reduce

poverty and inequality.

➢ Comment that it is generally regarded as a common goal, but forces exist otherwise

because of the conflict of interest among different parties.

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15. Lesson 29-30

(Lesson 25-34 is a series of lesson specially planned of Chapter 29 and 30)

Date 13 November 2019 Lesson 29-30

Topic Chapter 29 Protection of the Environment (2)

Chapter 30 Redistribution of Income (2)

BAA C-1, C-2, C-3, C-4, C-5, C-8

Learning Objectives

➢ Analyse the government intervention to

protect the environment

➢ Learn the government intervention used to

reduce inequality and poverty: progressive

taxation, redistribution through benefits and

investment in education and health care

Difficult points

➢ Selection of relevant

information to support their

case

Teaching Strategies

➢ Students (in groups) pre-read and do research on a designated topic (iPad provided):

✓ Taxation (environmental protection)

✓ Subsidies (environmental protection)

✓ Regulation (environmental protection)

✓ Pollution permit (environmental protection)

✓ Progressive taxation (income inequality)

✓ Redistribution through benefit payments (income inequality)

✓ Investment in education and health care (income inequality)

➢ Students are given time for general reading during Lesson 29. Starting from Lesson

30, groups are given certain research areas to be focused on. Students are

particularly asked to spend time on how to evaluate the effectiveness of the assigned

government policy.

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16. Lesson 31-32

(Lesson 25-34 is a series of lesson specially planned of Chapter 29 and 30)

Date 15 November 2019 Lesson 31-32

Topic Chapter 29 Protection of the Environment (3)

Chapter 30 Redistribution of Income (3)

BAA C-1, C-2, C-3, C-4, C-5, C-8

Learning Objectives

➢ Analyse the government intervention to

protect the environment

➢ Learn the government intervention used to

reduce inequality and poverty: progressive

taxation, redistribution through benefits and

investment in education and health care

Difficult points

➢ Make evaluation in the context

given

Teaching Strategies

➢ Teacher shows students an evaluation question (12%) on park provision. A sample

answer is prepared in the form a mind map.

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➢ Students (in groups) prepare a mind map for their evaluation question (case study on

government intervention) of the topic previously assigned [TASK 3]

➢ (for the 7 case studies, please refer to Appendix 4)

➢ A peer evaluation form is given to each student to grade their peers’ mind maps.

[TASK 4]

➢ HOMEWORK: Each student is assigned 1 of the 7 evaluation questions other than the

one attempted in TASK 3. They have to read the mind map prepared by the groups for

points to write. [TASK 5]

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17. Lesson 33-34

(Lesson 25-34 is a series of lesson specially planned of Chapter 29 and 30)

Date 20 November 2019 Lesson

Topic Chapter 29 Protection of the Environment (4)

Chapter 30 Redistribution of Income (4)

BAA C-1, C-2, C-3, C-4, C-5, C-8

Learning Objectives

➢ Develop strategies and skills in answering

evaluation type questions

➢ Analyse the government intervention to

protect the environment

➢ Learn the government intervention used to

reduce inequality and poverty: progressive

taxation, redistribution through benefits and

investment in education and health care

Difficult points

➢ Assessment of effectiveness of

different government

intervention to protect the

environment/ reduce

inequality

Teaching Strategies

Before Lesson 33

➢ Students finish their individual evaluation answer with reference to the mind maps

➢ Students complete the peer evaluation form

Lesson 33

➢ Students bring in their individual evaluation answer and sit in groups with those with

the same assigned question.

➢ Students read the answers of their group members and discuss to come up with an

improved answer.

➢ Write up the improved evaluation answer in the group. [TASK 6]

Lesson 34

➢ Project the answer of each group on the screen. Discuss with students about each

evaluation answer.

➢ Point out the good points provided and suggest possible improvement areas.

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18. Lesson 35-36

Date 25 November 2019 Lesson 35-36

Topic Fiscal Policy (1)

BAA -

Learning Objectives

➢ Describe the meaning of fiscal policy

➢ Explain the nature of government revenue:

types of taxes

➢ Clarify the difference between fiscal surplus

and fiscal deficit

➢ Delve into the impact of a fiscal deficit and

fiscal surplus

Difficult points

➢ Identify useful information in

the Policy Address for 2019

Teaching Strategies

➢ Introduce to students that the topic we are going to learn today is “Fiscal Policy.

➢ Ask students to recall what we have learnt about macroeconomic objectives. Invite

students to name the six objectives.

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➢ Recall that a government’s performance in managing the economy is determined by

how well these objectives are achieved. The government should make decisions and

adopt policies accordingly. Comment that in the coming weeks, we will learn two

category of policies: fiscal policy and monetary policy.

➢ Provide students with an overview of the main policy instruments to be used in these

two categories.

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➢ These policies are announced every year in the policy address. Ask students if they

have watched/read news about the government announcing increase in funding on

education, health care, elderly benefits, art and culture; while giving tax refunds, tax

breaks on income and profits. These are related to fiscal policy.

➢ Show students the definition of fiscal policy as follows:

➢ The government can plan for a budget deficit, meaning a higher governmetn

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spending than tax revenue. Alternatively, it can plan for a budget surplus, meaning a

lower government spending than tax revenue. The surplus can be save as reserves so

that the government can have money to spend during recession when tax revenue is

low. If there is no reserve but the government still need to spend, it has to borrow.

National debt is then build up.

➢ Ask students to be aware that budget deficit/surplus refers to the plan the

government made for the coming year. Fiscal deficit/surplus, on the other hand,

refers to the actual amount of the government net spending/income for a particular

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year.

➢ When the government has higher income and higher reserve level, it has a higher

level of freedom in making different policies to meet the need of its citizens. It is

especially true for large capital investment in infrastructure.

➢ Show students the provisions of the Macau SSAR Basic Law about the Economy.

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➢ Macau has autonomy in determining the fiscal and monetory policies. The Macau

Government should strive for a balanced budget and promote economic growth. We

have the right to make decision on our tax policies and to spend according to the

level of income. No tax will be levied on Macau by the Central Government.

➢ Read the highlights of Policy Address for the Fiscal Year 2019 of Macau SAR (Macau

SAR Government, 2018). (Please refer to Appendix 5 for the document)

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19. Lesson 37-38

Date 28 November 2019 Lesson 37-38

Topic Fiscal Policy (2)

BAA -

Learning Objectives

➢ Identify the nature of government

expenditure: main area of focus

➢ Explain the nature of government revenue:

types of taxes

➢ Analyse the possible impact of fiscal policies

on macroeconomic objectives

Difficult points

➢ Realise that both expansionary

and contractionary fiscal

policies have positive and

negative impact; judgement has

to be made on how much the

negative side will offset the

positive side of the policy

Teaching Strategies

➢ Recap on what has been learnt in the previous lesson. Ask student to explain briefly

what fiscal policy is, naming the policy instruments of fiscal policy.

➢ Ask students to name as many as possible different areas of government spending.

Some examples are given below.

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➢ The government spending can be divided into two main categories. Mandatory

spending are those usual spending that a government would have while discretionary

spending are those that are not continuous. Usually discretionary spending is for

building new infrastructure. Ask students to categorize the government spending

they have listed into the two categories.

➢ Tax revenue are the main income of the government. Apart from financing

government spending, it can also be used to discourage certain activities such as

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smoking and to manage the level of activities by controlling aggregate demand.

➢ Show students a list of taxes that we usually see. Ask student if there is any tax type

that do not understand. Refer to the explanation of the textbook and provide further

clarification if needed.

➢ Ask students to work on a matching exercise in groups. They have to match the

examples of the tax with the types of tax shown above. Check the answers together

after they have finished.

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➢ Recall what we have read in the last lesson about the Macau Policy Address for 2019.

Below is a list of some items in the Policy Address.

➢ Go to the website of the Macau Statistics Bureau to look for the data about

government spending and revenue in the past years. There has been an almost 10

times increase in government revenue. Ask students to suggest why there is such an

increase. They should realise that most of the government income is from gaming

tax.

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➢ Ask students to distinguish between the items shown below.

➢ Expansionary/contractionary fiscal policy is the adjustment in spending and tax policy

to promote or control economic growth. Explain when and how they are used.

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➢ As mentioned at the start of the topic, all government policies should be directed in a

way to achieve macroeconomic objectives. Ask students whether expansionary or

contractionary fiscal policy should be used in tackling the following objectives. Let

students mark down their answers first. After they finish, check their answer by go

through the following slides.

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➢ As a consolidation exercise, ask students to complete the Class Practice on the topic of

Fiscal Policy.

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20. Lesson 39-40

Date 3 December 2019 Lesson 39-40

Topic Fiscal Policy (3)

BAA -

Learning Objectives

➢ Explain different types of taxes: direct vs

Indirect; proportional, progressive vs

regressive

➢ Analyse the impact on different types of

taxation

Difficult points

➢ Understand how much tax

burden is shifted to consumers

Teaching Strategies

➢ Recap what we have learnt about the topic in the last lesson. Ask students what

expansionary and contractionary fiscal policy is.

➢ Ask students to go back to the list of taxes we have last time. Comment that there are

different ways to categorize taxes. One of them is to divide them into direct tax and

indirect tax. Ask students to guess what the word “direct” refers to. Let students

discuss in groups and share their answer in the class.

➢ After their sharing, comment that the word “direct” means the tax is directly levied

on a firm or individual. Indirect tax, on the other hand, is not levied on a first or

person, but on the activities concerned (usually on spending).

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➢ Ask students if they can do the classification of direct and indirect tax. The answer is

shown to students after they have finished. Note that the four tax at the bottom of the

list is sub-categorized as environmental tax. It is imposed for the aim of reducing

pollution. When you look at how it is taxed, it can also be categorised under the

indirect tax group.

➢ When tax is levied on a product, the supply curve will shift upwards for the amount

of the tax. It is because, for the produce be willing to produce the same level of

output, price has to be increase for the same amount. Ask students to point out the

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changes in price and quantity in the demand supply diagram. Price increases and

quantity decreases. Ask students if they know what the orange and blue box

represents. Let students discuss in groups and invite them to share in the class.

➢ The orange box represents the tax burden born by consumers. Consumers are paying

more than before. The blue box represents the tax burden born by producers.

Producers are receiving less than before. The two boxes together represent tax

revenue for the government.

➢ Show students the two supply demand diagrams as follows. Ask them if they notice

the size of the tax burden is different in the two cases. It means that in some cases,

consumers have to bear a higher proportion of the tax. Challenge students, “what

affect the distribution of the tax burden?” Let students discuss in groups and invite

them to share the opinion.

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➢ Comment that it is determined by price elasticity of demand (PED). If demand is price

elastic, that means consumer are responsive to a price change. A lot of consumers

will not continue to buy the product due to the increase in price. Producers will not

be in a good position to shift the tax burden to consumers. The reverse is true for

inelastic demand.

➢ It is important for the government to recognise this. For instance, if tax is levied on

public transport, where demand is quite price inelastic, commuters will have no choice

but to bear most of the tax burden. This will not be good because public transport is a

necessity.

➢ Another way to categorize tax is by tax rate.

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➢ A progressive tax rate will help to narrow the gap between the rich and the poor as

the wealthier population pay a higher proportion of their income as tax.

➢ However, indirect tax is regressive tax. For instance, the rich and the poor paid the

same amount of tax for a can of coke. This translate to a higher proportion of income

for the poor than for the rich.

➢ Comment that the government should be very careful when imposing indirect tax. To

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do this, the government can levy higher tax rate for luxury goods and lower tax rates

for necessity.

➢ Give out a table for the evaluation of direct and indirect taxation. Ask students to fill

in according to the comparison criteria given. Check the answer with students have

they have finished. Give further explanation for common mistakes and clarify points

of misconception.

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21. Lesson 41-42

Date 6 December 2019 Lesson 41-42

Test 2 for the Second Term

Microeconomics (prior knowledge)

Chapter 14 The factors of production and sectors of the economy

- Factors of production

- Sectors of the economy

Chapter 15 Productivity and division of labour

- Definition of productivity and division of labour

- Factors affecting productivity

- Division of labour and the workers

- Division of labour and businesses

Chapter 16 Business costs, revenues and profit

- Calculation and application of total fixed costs/variable costs, total costs, average

costs, total revenue and profit

Macroeconomics

Chapter 28 Balance of payments on the current account

- Definition of balance of payments, current account, exports, imports, current account

deficit/surplus

- Calculation of current account balance, visible and invisible balance

- Visible and invisible trade

- The relationship between the current account and exchange rate

- Reasons for deficits and surpluses

- The impact of a current account deficit

Chapter 29 Protection of the environment

- Business activity that damages the environment (focus on power generation,

chemical processing and construction; others → only need to understand)

- Ways businesses damage the environment (read and identification only)

- Government intervention to protect the environment

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Chapter 30 Redistribution of income

- Definition of income inequality, absolute and relative poverty

- Reasons to reduce poverty and inequality

- Government intervention to reduce poverty and income inequality

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22. Lesson 43-44

Date 11 December 2019 Lesson 43-44

Topic Monetary Policy (1)

BAA -

Learning Objectives

➢ Define of monetary policy and interest rates

➢ Explain the role of central banks in setting

interest rates

Difficult points

➢ 2

Teaching Strategies

➢ Introduce the topic of today’s lesson as “monetary policy”.

➢ Challenge students, “Do you know the people shown below?”

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➢ Although they may have different titles in different countries, they are the chief of

economics and finance in Macau, Hong Kong, China and US.

➢ Ask students to recall the four policy instrument we have seen in the previous topic.

Monetary policy, self-telling by the name, is the policies regarding money itself.

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➢ Monetary policy involves adjusting interest rates and mony supply to achieve

macroeconomic activities.

➢ Interest rate can be understood as the price for money. It is the price you pay to

obtain money for a period of time. As a result, when interest rate (price) is lower, a

higher quantity (more loan) is demanded.

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➢ The central banks has many differnet important roles. One of which is to set interest

rate for commercial banks in the country to follow.

➢ Show students in the following slides how the Central Bank in UK and Federal Reserve

in US review and set interest rates.

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➢ Ask students to work on the case studies in groups. Discuss the answer of the

questions with students after they have finished.

➢ Just like for fiscal policy, expansionary and contractionary monetary policies are used

to manage economy activities in different stages of economic cycle. In the following

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cases, ask students to determine the appropriate monetary policy to be used.

➢ Show students a reference to expansionary and contractionary monetary policy to be

used to tackle economic problems.

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23. Lesson 45-46

Date 16 December 2019 Lesson 45-46

Topic Monetary Policy (2)

BAA

Learning Objectives

➢ Analyse the impact of changes in interest rates

on macroeconomic objectives and how

consumers and businesses are affected

➢ Explain the use of asset purchasing by central

banks

➢ Understand how money supply is determined

in an economy

Difficult points

➢ Explain how money supply is

adjusted through quantitative

easing and reserve ratio

Teaching Strategies

➢ Recap with students on what has been learnt for the topic in previous lesson. Ask

students to name the policies instruments to be used in monetary policy.

➢ Ask students in what direct we should adjust interest rate and money supply if we

want to adopt expansionary monetary policy.

➢ Recall that government policies aim at achieving macroeconomic objectives.

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➢ Ask students to write up in groups, the effects on consumers, producers, economic

growth, inflation, unemployment, current account balance and redistribution of

income. Each group will be assigned one aspect. After 1st stage of discussion,

students are then re-group to form groups of 7 with member working on different

aspect [JAGSAW arrangement]. Students will share what they have discussed about

their own point. Each group is to produce one final summary note on effects of

changes in interest rate. The notes will be shown to other groups for comparison and

perfection.

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➢ Ask students if they have ever heard of the term “quantitative easing”. Explain the

main process of quantitative easing and how it help in increase money supply

without decreasing interest rate.

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➢ Japan has been using quantitative easing for many years to try to fight increase

money supply and fight against deflation. This efforts seem to be not so successful.

➢ Watch the video about quantitative easing in Japan by Cable Financial News

[http://www.youtube.com/watch?v=Ush-i6OLCZQ]

➢ Another way to increase money supply is to adjust the reserve ratio. This method is

often used by China. The government has regulation on how much reserve

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commercial banks have to keep before lending out loan. This reserve is left in the

bank to make sure there is no over-loaning risking a run on the bank. When the

requirement on the reserve ratio is reduced, the bank can lend more money to

borrowings, thus money supply increase.

➢ Ask students to discuss in groups: which method of increase money supply is better?

Let students discuss and later invite them to share their opinion. Comment on their

points and make a conclusion on the discussion.

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24. Lesson 47-48

Date 2 January 2020 Lesson 47-48

Topic Monetary Policy (3)

BAA

Learning Objectives

➢ Consolidation of the chapter

➢ Discussion of the final task for the structural

project

Difficult points

➢ Identify relevant and useful

information about the

demand-side government

policies needed in the 5th tasks

of the structural project

Teaching Strategies

➢ As consolidation of what have been learnt in the chapter, as students to participate in

a Kahoot! check-up exercise. Explain any difficult points identified and clarify

common mistakes and misconception.

1

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➢ Give instructions to students about the 5th task of the structural project. Give specific

examples to students using the Hong Kong case.

➢ Students can start their research work in groups. Give assistance and guidance to

students as it is a task that requires advance analytical skills.

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25. Lesson 49-50

Date 7 January Lesson 49-50

Topic Revision for Examination

Teaching Strategies

➢ Going through the examination syllabus together, use questions and answers to help

students in revising for the examination.

➢ Remind students about the techniques in answering questions. Show students again

the 4 assessment objectives and the requirement for marks to be obtained. Revisit the

list of command words and their corresponding requirements.

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26. Second Term Started

➢ School was suspended starting the end of the Chinese New Year Holiday

➢ According to the instructions of DSEJ, the school starts online learning from 4

February 2020. Information is dispersed by the school administration to panel heads

and teachers through WhatsApp instant messaging tool. The following rules applies:

(1) Online learning during the school suspension period should be focused on

consolidation of previous knowledge, and the extension of such knowledge.

(2) Optional schooling is extended to 30 July 2020. Thus, there is not rush to cover

the original syllabus during school suspension period.

(3) When designing contents for online learning, the rule of thumb is to let students

make good use of the time they have, without adding too much pressure on

them and their parents. Thus, the total learning hours for each subject should

not exceed 3 hours each week.

(4) Learning tasks should be designed in a way to allow students to learn at their

own pace. Tasks should be divided into 3 level of difficulties (basic, intermediate

and advanced) and labelled as such to help students level up their learning

accordingly.

(5) Learning tasks during the suspension period do not contribution to the

assessment grade in the second term.

(6) Alternative learning should be made available to students who have difficulty in

accessing the Internet.

(7) Optional extended learning is available for students who will take public

examinations.

(8) Lesson planning should be submitted each week to the panel head and

administration team for approval.

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27. Online Learning Week 1

Date 4-7 February 2020 Online Learning Week 1

Topic Supply-Side Policies (1)

BAA -

Learning Objectives

➢ Define supply-side policies

➢ Explain the main aim of supply-side policies

➢ Explain the impact of supply-side policies on

macroeconomic objectives: privatization,

deregulation, education and training, regions,

infrastructure, business taxes and income

taxes

Difficult points

➢ Not applicable

Tasks for Students

➢ Students should read p. 266-272 (Basic)

➢ While reading the chaper, students should prepare summary notes on their notebook

according to the following sections. (Intermediate)

✓ Definition of supply side policies

✓ Aims of supply side policies

✓ Illustration of implementation of supply side policies on a PPC diagram and

description on output of both goods

✓ Examples of supply side policies

a. Privatisation

b. Deregulation

c. Education and training

d. Regional policies

e. Infrastructure spending

f. Lower business taxes

g. Lower income taxes

*Note: For each of the above example, students should include

i. Name of the policy

ii. Mechanism of the policy (what the government does)

iii. Impact of the policy

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iv. Evaluation of the policy (if there is any)

➢ Students should scan their notebook and submit on OneDrive for teachers to check.

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28. Online Learning Week 2

Date 3 – 11 February 2020 Online Learning Week 2

Topic Supply-Side Policies (2)

BAA -

Learning Objectives

➢ Explain the impact of supply side-policies on

macroeconomic objectives: privatization,

deregulation, education and training, regions,

infrastructure, business taxes and income taxes

➢ Evaluation of advantages, disadvantages and

effectiveness of the supply side polices

mentioned above

Difficult points

➢ Identification of the key

advantage and limitation of a

policy imposed

Tasks for Students

Before attending the zoom meeting, students should

➢ Finished the summary notes assigned in Week 1

➢ Copy the table on their notebook (Basic)

Zoom meeting on 11 February 2020 10:00-11:00 am (Basic to Intermediate)

➢ Ask students to name the Macroeconomic Objectives that they have previously learnt.

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➢ Commented that everything that the government does should be related to the

macroeconomic objectives; and that we are going to link the supply-side policies to

these objective

➢ With the help of the PowerPoint slides make available to students, invite students to

explain the supply-side policies that they have read in Week 1, including:

➢ Privatisation

➢ Deregulation

➢ Education and training

➢ Regional policies

➢ Infrastructure spending

➢ Lower business taxes

➢ Lower income taxes

➢ Comment on students’ explanation and clear students’ doubt, if any.

➢ Exercise: show students a table containing 6 government policies in Macau, ask

students to name of the type of supply-side policy used for each case, and the

macroeconomic objective(s) it wishes to attempt. Students can directly fill in the form

on the shared screen.

➢ Answers would then be discussed

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➢ Ask students to recall some demand-side policies previously learnt, eg. Monetary

policies, wealth part-taking scheme, etc.

➢ Point out that supply-side policies aim to increase supply and demand-side policies aim

to increase demand.

➢ Challenge students in identifying the differences of the two types of policy in the other

aspects given in the table.

➢ Comment on the suggestions given by students and ask students to fill in the form by

themselves. Answers could be as follows:

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Assignments to be submitted on OneDrive

➢ Complete the table comparing Demand-side and Supply-side Policies. (Intermediate)

➢ Complete exercise on supply side policies (pg.273) Questions 1, 2 and 4(b) (refer to

Appendix 6). (Advanced)

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29. Online Learning Week 3

Date 17-21 February 2020 Online Learning Week 3

Topic Globalisation (1)

BAA C-3, C-7, D-4, D-5

Learning Objectives

➢ Identify the features of globalisation and

explain the global trend of increasing

interdependence between countries

➢ Explain the causes and effects for globalization

➢ Assess the possible impact to the economic

stakeholders

Difficult points

➢ Properly identify the economic

standpoints of different

stakeholders, who are inter-

related and how they have

conflict of interest

Tasks for Students

➢ Watch the video “Globalization Explained” by Explainitychannel.

[https://www.youtube.com/watch?v=JJ0nFD19eT8&t=109s]

➢ Prepare summary notes on Globalisation based on the video and submit on

OneDrive. The summary note should include: (Intermediate)

➢ Complete the Google Form Exercise on the topic of Globalisation (refer to appendix

7). (Basic to Intermediate)

✓ Definition of globalisation

✓ Features of globalization

✓ Advantages and disadvantages of Globalisation to different stakeholder (table)

Advantages Disadvantages

Individual countries

Governments

Producers

Consumers

Workers

The Environment

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30. Online Learning Week 4

Date 24-28 February 2020 Online Learning Week 4

Topic Discussion of 1st Term Examination

Analysis of Policies Adopted during COVID-19

BAA -

Learning Objectives

➢ Learn what economic measures the Macau

Government had to recover the economy after

COVID-19

➢ Evaluate the extent to which different

measures impact on macroeconomic

objectives.

Difficult points

➢ Identify the deeper economic

consequences of the measures

Tasks for Students

Zoom meeting on 25 February 2020 10:30-11:30 am (Intermediate)

➢ Clarify misconceptions and explain common mistakes identified in students’ answers

in the 1st term examination.

➢ Discussion on evaluation questions and comment on how to improve the answering

skills of this question type.

➢ Ask students if they have watch news about Macau Government’s economic measures

released just then. Briefly explain the assignment of the week.

Assignments to be submitted on OneDrive

➢ Visit the website of gov.mo and read through the list of economic measures to recover

the economy after epidemic COVID-19. (Basic)

[https://www.gov.mo/en/news/122812/]

➢ Choose one Macau government’s economic measure to recover the economy after

epidemic COVID-19 and analyse its impacts on macroeconomic objectives. (Advanced)

✓ Students of odd student number should choose demand-side measures and

students of even student number should choose supply-side measures.

✓ Note: an economics measure could be demand-side and supply-side at the

same time, but the analyses on AD and AS are different

✓ You should focus on:

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• Mechanism of the policy

- Identification of demand-side or supply-side policy

- Department of enforcement

- Time period

- Details of the policy

• Impact of the policy on at least two macroeconomic objectives

• Two points of evaluation

- Possible loopholes

- Time taken for effects to be seen

- Cost (does it matter a lot to the Macau Economy?)

- Negative impacts

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31. Online Learning Week 5

Date 2-6 March 2020 Online Learning Week 5

Topic Globalisation (2)

Multinational Companies (MNCs) and Foreign Direct

Investment (FDI) (1)

BAA C-3, C-7, D-4, D-5

Learning Objectives

Globalisation

➢ Development on knowledge about features,

reasons and impact of globalisation on

different economic stakeholders

➢ Brush up on skills in attempting evaluation type

questions

➢ identify the characteristics and give proper

examples of multinational companies in HK or

Macau

MNCs and FDI

➢ Define and distinguish foreign indirect

investment and foreign direct investment

➢ Explain the reasons for the emergence of

MNCs/FDI

➢ Explain the pros and cons of MNCs/FDI

Difficult points

➢ Writing up answers to

evaluation type questions in

the given context

Tasks for Students

Before attending the zoom meeting, students should

➢ Print or copy the exercise on globalisation onto notebook.

Exercise on Globalisation

1. The increased integration and interdependence of economies is known as (1%) 2019 Jun

A. privatisation

B. specialisation

C. protectionism

D. globalisation

2. Increased globalisation has improved the living standards in countries such as China.

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a. Explain one reason for the increases in globalization in recent years. (3%)

b. Analyse how globalization may result in improvements in living standards in

China. (6%)

3. Kenya is the third largest exporter of cut flowers in the world, accounting for 1.3% of its

GDP. Kenya’s main airport has a terminal dedicated especially to the transport of flowers

and vegetables.

The Kenyan flower industry has created many employment opportunities. Around 100,000

people are employed directly on the flower farms and over 500,000 people benefit

indirectly from this industry.

Over half of Kenya’s 127 flower farms are concentrated around Lake Naivasha dueto the

large amount of water needed to grow the flowers. Some environmental campaigners

have expressed concerns over the impact that the flower industry could have on the lake.

With reference to the data above and your knowledge of economics, evaluate the likely

benefits for Kenya of the globalisation of its flower industry. (12%)

➢ Brainstorm and write down the answer in point form for discussion during zoom

meeting. (Basic to Advanced)

➢ Submit the work on OneDrive before 5 March 2020 (zoom meeting time).

Zoom meeting on 5 March 2020 10:30-11:30 am (Basic to Advanced)

➢ Discussion of last week’s assignment. Share with the class well-written analysis. An

example of a student’s work is given as follows:

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➢ With the help of the PowerPoint slides make available to students, invite students to

explain what they know about globalisation from the video assigned in week 3,

including the following aspects:

➢ Supplement students with any missing points and clarify any misconception.

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➢ Discuss with students the answers of the exercise on globalisation. Invite students to

share their answers with the class.

➢ Answering techniques are taught and suggested answers shown to students (please

refer to Appendix 8 for suggested answers to the questions).

➢ Students are most likely unable to score well in AO2 (writing in context). Special

instructions are given to assist students to “write in context”. For question 3 of the

exercise, students have to include in their answers the context information given,

and identify what points are most relevant to the case. Students are encouraged to

underline the context information and make sure they include these parts in their

answers.

Assignments to be submitted on OneDrive

➢ Read chapter 36 Multinational Companies (MNCs) and Foreign Direct Investment in

the textbook.

➢ Copy/Print the notes of FDI and MNCs and fill in the blanks (Please refer to Appendix

9 for the fill in the blanks exercise, with answer key). (Basic)

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32. Online Learning Week 6

Date 9-13 March 2020 Online Learning Week 6

Topic Multinational Companies (MNCs) and Foreign Direct

Investment (FDI) (2)

BAA C-3, C-7, D-4, D-5

Learning Objectives

➢ Explain the reasons for the emergence of

MNCs/FDI

➢ Evaluate the benefits of MNCs/FDI brought to a

country

Difficult points

➢ Apply the skills learnt about

writing in context

Tasks for Students

➢ Complete the Google Form Exercise on the topic of MNCs and FDI (refer to appendix

10). (Basic to Intermediate)

➢ Complete the exercise on the topic of MNCs and FDI and submit the work on

OneDrive. (Advanced)

Exercise on MNCs and FDI

1. According to the UN there are now over 63,000 multinational corporations (MNCs) and the number is growing daily. Many well-known MNCs, including PepsiCo, the Tata Group and Microsoft, are expanding in India.

Explain one reason for the emergence of MNCs in a country such as India. (3)

2. Since 2016, 24 Japanese multinational corporations (MNCs) have invested in Bangladesh. This takes the total to 269 Japanese MNCs in Bangladesh. Low wages and the low cost of production are the main reasons for locating in Bangladesh. The cost of production is four times higher in China compared to Bangladesh.

Investments in Bangladesh have been made by Japanese automobile firm Honda and steel manufacturer Nippon Koei. Nippon Koei has invested $59.19m and recruited 2,500 employees to work in its steel factories.

With reference to the data above and your knowledge of economics, assess the benefits that MNCs bring to a country such as Bangladesh. (9)

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33. Online Learning Week 7

Date 16-20 March 2020 Online Learning Week 7

Topic Multinational Companies (MNCs) and Foreign Direct

Investment (FDI) (3)

International Trade (1)

BAA C-3, C-7, D-4, D-5, D-8

Learning Objectives

MNCs and FDI

➢ Consolidate on the knowledge learnt about

MNCs and FDI

➢ Interpret the FDI data as percentage of GDP

and its significance to the economy

➢ Understand Macau’s FDI level and its

components

➢ Evaluate the benefits of MNCs/FDI brought to

a country

International Trade

➢ Explain the reasons for international trade and

give examples

➢ Identify the advantages and disadvantages of

free trade to the markets

Difficult points

➢ Retrieve useful and relevant

data from the DSEJ interactive

time serious database

➢ Find relationship and

corelation among data set and

make relevant observation and

conclusion

Tasks for Students

Zoom meeting on 19 March 2020 10:30-11:30 am (Basic to Advanced)

➢ With the help of the fill in the blanks exercise completed in Week 5 (please refer to

Appendix 9 for the fill in the blanks exercise, with answer key), invite students to

explain what they know about MNCs and FDI, including the following aspects:

✓ Features of MNCs

✓ Reasons for the emergence of MNCs and FDI

✓ Advantages to countries with inward FDI and MNCs setting up operations

✓ Disadvantages to these countries

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➢ Watch the video “Top 15 Countries by Foreign Direct Investment, net inflows (1969-

2918)” by Infinite Enterprise together.

[https://www.youtube.com/watch?v=nequylsTbtU]

➢ Ask students to guess the amount of Inward FDI of Macau. (Hint: GDP of Macau in

2019 is MOP434,670 million)

➢ Some students may make wild guess while other may research on the Internet.

➢ Share the screen for the visit of DSEC interactive time series database.

[https://www.dsec.gov.mo/ts/#!/step1/zh-mo]

➢ Retrieve the data for comparison of GDP and Inward FDI.

➢ As the website do not the function to show the data as a tailored graph, we will build

our own in Excel.

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➢ Discuss with students the trend in Inward FDI and GDP. Although we cannot conclude

on any cause and effect of the two, we can see a strong corelation of the two data set.

➢ Ask students to guess out of the Inward FDI of Macau, which industries make up the

largest proportion. Students would probably suggest the gaming industry, which is

correct. Ask students to name other industries that come next in the race.

➢ Use the DSEC database again to look up the data concerned.

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➢ Ask students to read each other’s work of the Exercise on MNCs and FDI. Ask them to

quote good points and share to the class.

➢ Meanwhile, these points are types on the shared screen so that all students can read.

Students are invited to improve the answer together and learn from the combined

effort.

Other tasks

➢ Read chapter 37 International Trade in the textbook.

➢ Copy/Print the notes of International Trade and fill in the blanks (Please refer to

Appendix 11 for the fill in the blanks exercise, with answer key). Submit the completed

exercise on OneDrive. (Basic)

➢ Complete the Google Form Exercise on the topic of International Trade (refer to

appendix 12). (Basic to Intermediate)

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34. Online Learning Week 8

Date 23-27 March 2020 Online Learning Week 8

Topic International Trade (2)

Protectionism (1)

BAA D-4, D-5, D-8, D-10

Learning Objectives

International Trade

➢ Explain the theory of absolute and

comparative advantages

➢ Recognise that world output can be increased

by the use of comparative advantage in

trading

➢ Identify the mutually beneficial terms of trade

➢ Evaluate the advantages and disadvantages of

free trade to a country

Protectionism

➢ Define and explain the meaning of

protectionism

➢ Explain the reasons and methods for

protectionism

Difficult points

➢ Calculation of benefits to

countries at different

import/export price level

➢ Identify relevant information to

be researched about in the

absence of such in evaluation

questions

Tasks for Students

Zoom meeting on 26 March 2020 10:30-11:30 am (Basic to Advanced)

➢ Invite students to explain the reasons why countries trade with each other. They can

use the share-screen function and show their fill in the blanks exercise as visual aids.

Points should include the following:

✓ Obtaining goods that cannot be produced domestically

✓ Obtaining goods that can be bought more cheaply from overseas

✓ Selling off unwanted commodities

➢ Focus on the second point “obtaining goods that can be bought more cheaply from

overseas”, give students the following scenario:

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Cost of production Country A Country B

Apple Juice $0.50 $2.00

Orange Juice $1.00 $2.00

➢ The table shows the cost of production of 1 unit of apple juice and 1 unit of orange

juice by Country A and Country B respectively.

➢ Assume that Country A want 1,000 units of each juice. Ask students how Country A

should obtain the units needed. Allow some time for consideration and discussion.

➢ Students probably would say that as the cost of production of both apple juice and

orange juice of Country A is lower than that of Country B, Country A should produce

domestically all the units needed.

➢ Watch the video “Absolute vs. Comparative Advantage in One Minute: Definitions,

Explanation, Examples and Comparison” by One Minute Economics together.

[https://www.youtube.com/watch?v=qwoc_f9Is3s]

➢ Explain the concept of absolute advantage and comparative advantage mentioned in

the video.

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➢ Ask students “If you are an importer in Country B, are you willing to pay $2.00 for one

unit of apple juice?”; ”How much will you accept then?”

➢ Comment that when a country is sourcing goods/materials from a country that that

produce at a lower cost, the price would lie between the two countries’ production

cost (somewhere between $0.50 to $2.00). The final price would be determined by

demand and supply as well as the bargaining power of the two countries.

➢ Challenge students in calculating the benefits to Country A and Country B if price is

set at different levels for apple juice and orange juice.

➢ Show students the following question:

The Philippines has free trade agreements with China, India, Japan, Republic of

Korea, Australia and New Zealand under ASEAN (Association of Southeast Asian

Nations).

Evaluate the advantages and disadvantages of free trade for a country such as the

Philippines. (12)

➢ Invite students to apply what they learnt about advantages and disadvantages of

international trade in answer the question.

➢ Students have to pay attention to “writing in context”. If not much information is

given, they have to make a little research on relevant topics. Examples are given

below:

✓ Major imports and exports of the Philippines to do that properly. (World's Top

Exports, 2020)

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✓ GDP of the Philippines compared (Asean Up, 2018)

➢ Comment on students’ answer and clarify any misconception.

Assignments to be submitted on OneDrive

➢ Read chapter 38 Protectionism (page 312 - 317) and prepare summary notes

according to guidelines given below: (Intermediate)

✓ Definition of protectionism and trade barriers

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✓ Reasons for protectionism

✓ Methods of protectionism, including for each

- mechanism

- advantages

- drawbacks

➢ Read the case study “US Tariffs on Foreign Steel Produces on page 317 of the

textbook. Answer question 2 and 4 (please refer to appendix 13 for the case study).

(Advanced)

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35. Online Learning Week 9

Date 30 March – 3 April Online Learning Week 9

Topic Protectionism (2)

Trading Blocs (1)

BAA D-4, D-5, D-6, D-7, D-8, D-10

Learning Objectives

Protectionism

➢ Define and explain the meaning of

protectionism

➢ Explain the reasons and methods for

protectionism

➢ Draw the supply-demand diagram on the

effects of a tariff, quota, and subsidy on

protectionism

➢ Explain the problems brought by

protectionism

Trading Blocs

➢ Define and identify the type of trading blocs

➢ Give examples of the trading blocs

➢ Assess the pros and cons of countries joining

the trading blocs (including member and non-

member of the blocs)

Difficult points

➢ Distinguish between impacts on

imports, exports and local

markets

➢ Identify the secondary effects

of method of protection after

the immediate effects

Tasks for Students

Zoom meeting on 2 April 2020 10:30-11:30 am (Basic to Advanced)

➢ Introduce the topic “Protectionism”. Ask students why this term is used. Comment

that countries experience drawbacks and harms when trading with other countries.

They then decide to “do something to protect their own economy from the harm of

trade”.

➢ Invite students to explain the reasons for protectionism (avoiding what kind of harm).

Students can use the share-screen function and show their summary notes as visual

aids. Points should include the following:

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➢ Ask students to name the three method of protection they have learnt:

✓ Tariffs, Quota and Subsidy

➢ Show students the following demand-supply diagrams

➢ Ask students to match the demand-supply diagrams to the 3 methods of protection.

➢ Students should give explanation about their choice.

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➢ Comment that there are other methods of protection.

➢ Ask students to summarize the 3 methods of protection in the following table.

Students can write directly on the shared screen.

➢ The answer should be as follows:

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➢ Ask students to suggest what problems would protectionism bring. Give them time

for discussion.

➢ After students share their answers, supplement them with missing points and clarify

any misconception.

➢ Discuss with students the answer to the case study. Show students a well written

answer by one of the students.

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Assignments to be submitted on OneDrive

➢ Read chapter 39 Trading Blocs and prepare summary notes according to guidelines

given below: (Intermediate)

1. What is a trading bloc?

✓ Definition

✓ Different types of trading blocs

2. Impact of trading blocs on member states

Draw a table to lay out the advantages and disadvantages of trading blocs

Advantages of trading bloc Disadvantages of trading bloc

3. Impact of trading blocs on non-member states

4. Examples of trading blocs

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36. Online Learning Week 10

Date 6-8 April 2020 Online Learning Week 10

Topic Protectionism (3)

Trading Blocs (2)

BAA D-4, D-5, D-6, D-7, D-8, D-10

Learning Objectives

Protectionism

➢ Draw the supply and demand curve on the

effects of a tariff or quota on protectionism

➢ Evaluation on benefits on reducing tariffs to

home country

Trading Blocs

➢ Explain the benefits and drawbacks of a

country joining trading blocs

Difficult points

➢ The question asks for the

evaluation of reducing tariffs,

which is in reserve of the points

given in the textbook for

imposing tariffs.

Tasks for Students

(This week’s work would be lighter for students. Students would enjoy their Easter holiday

from 9th to 18th April, with no tasks to be assigned)

➢ Students should complete the following exercise and submit on OneDrive (Basic to

Advanced).

Exercise on Protectionism and Trading Blocs

1. In 2017 the US government wanted to introduce a 300% tariff on imported

aircraft made by Canadian manufacturer Bombardier.

Using the diagram below, draw the effects of the introduction of a tariff on

the equilibrium price and quantity of the aircraft made by Bombardier. Label

the new curve, the new equilibrium price and new equilibrium quantity. (3)

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2. In 2015, the Tripartite Free Trade Area (TFTA) was established in Africa. This

trade bloc includes more than half of the countries in Africa.

Explain one disadvantage of the African countries becoming a member of

this trade bloc. (3) June 2016

3. Following a trip to Asia in 2017 by US president Donald Trump, China has

reduced tariffs from 17.3% to 7.7% on over 200 consumer products. These

include pharmaceuticals, food, health supplements and clothing.

Many multinational corporations may have major financial gains. Nestle’s

sales could increase by 15% or $18.7 bn because of the reduction in

tariffs. Procter & Gamble, will also benefit from tariff reductions on items

ranging from shampoos to electronic toothbrushes.

With reference to the data above and your knowledge of economics,

evaluate the possible benefits of reducing the level of tariffs on imported

goods and services to China. (12) June 2019 1R

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37. Online Learning Week 11

Date 20-24 April 2020 Online Learning Week 11

Topic Trading Blocs (3)

BAA D-4, D-7, D-6

Learning Objectives

➢ Explain the main aim of trading blocs in

general

➢ Define and explain different types of trading

blocs

➢ Assess the pros and cons of countries joining

the trading blocs (including member and non-

member of the blocs)

Difficult points

➢ Understand the relationship

within and beyond trading blocs

is not only economic in nature,

but also political

Tasks for Students

Zoom meeting on 23 April 2020 10:30-11:30 am (Basic to Advanced)

➢ Invite students to explain what trading blocs are and give examples of trading blocs.

They can use the share-screen function if they have anything interesting to show to

the class. Students should be able to mention the points below.

➢ Ask students “Different trading blocs have different aims. If you are to name one

common and most important aim, what will it be?”

➢ Students may say that “it is to promote free trade within the bloc”.

➢ Show students the world map marked in colours for different trading blocs. Almost all

countries are members of different trading blocs. Ask students “It seems as if joining a

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trading bloc is a MUST for countries. What is it so?”

➢ Comment that trading blocs do not really promote free trade. Instead, many of the

times, they even promote protectionism. Many small countries suffer from

international trade because they are exploited by MNCs. Resources are bought

cheaply, income doesn’t improve much while exports flood in a takeover the

domestic market. These small countries cannot practise protectionism on its own as

these capitals will simply leave the country and go to another one nearby. This would

make countries in the area being exploited and destroyed one by one. If they join

forces and have common trade policies, these countries act like one bigger country

together and will have higher bargaining power against foreign capital.

➢ At the same time, members of the trading blocs promote free trade within the bloc

so that they will enjoy the benefits of free trade as well.

➢ Ask students if they understand well the different types of trading blocs mentioned

on page 320 of the textbook. Students would probably say no as the concept is not

very straight forward.

➢ Watch the video “Episode 38: Trade Blocs” by mjmfoodie together.

[https://www.youtube.com/watch?v=YDUq0DINhYk]

➢ Comment that some trading blocs are having a looser tie while some others are

highly integrated.

➢ The major similarities and differences can be summarised in the table below.

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➢ Invite students to explain the advantages of trading blocs to member states. Students

can use the share-screen function and show their summary notes as visual aids.

Points should include the following:

➢ Ask students “If joining a trading bloc give so many advantages, why would countries

sometimes wish to leave a trading bloc? United Kingdom is leaving EU, a strong a

established trading bloc. Can you suggest the reason?”

➢ After students’ discussion and answer, watch the video “Why does the UK want to

leave the EU?” by NowThis World together.

[https://www.youtube.com/watch?v=ZbEZNhFY9TA]

➢ Conclude the Brexit case with disadvantages of trading blocs on member states.

Countries have to weigh the pros and cons of joining a trading bloc. These blocs are

not deemed to exist forever. When the bloc no long serve the benefits of the member

states, it will be dissolved and some other new trading blocs will emerge.

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➢ Discuss with students the answer to the previous Exercise on Protectionism and

Trading Blocs. Show students a well written answer by one of the students.

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Assignments to be submitted on OneDrive

➢ Conduct research on the trading blocs and analyse its impact on member / non-

member countries. (Advanced)

Instructions: Student responsible

Regional Comprehensive Economic

Partnership (RCEP) 1 5 9 13 17 21 25

Common Market of Eastern and

Southern Africa (COMESA) 2 6 10 14 18 22 26

South Asian Free Trade Area

(SAFTA) 3 7 11 15 19 23 27

Mercosur 4 8 12 16 20 24

➢ Students should focus on:

✓ Basic details of trading bloc

- Significance of trading bloc on global trade

- Member countries of the trading bloc

- Objectives of the trading bloc

✓ Impact of the trading bloc on the member / non-member countries

✓ Two points of evaluation

- Negative impact

- Criticisms

- Opportunity costs

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38. Online Learning Week 12

Date 27-30 April 2020 Online Learning Week 12

Topic Globalisation

International Relationship

Labour Market

BAA -

Learning Objectives

➢ Be aware of happenings around the world

➢ Understand the forces that affect government

policies

➢ Build up skills in evaluating government

policies from different perspective

Difficult points

➢ Identify short term and long

term effects of government

policies

Tasks for Students

(School will resume in the next week. This week’s work would be lighter for students to

allow students to better prepare themselves for school.)

➢ Read the article on "Trump says immigration order will apply only to green cards and

will last 60 days" [https://edition.cnn.com/2020/04/21/politics/donald-trump-

immigration-coronavirus/index.html] (CNN, 2020)

➢ Discussion will be held after school resumed. Students are expected to explain the

mechanism of this policy, evaluate the advantages and disadvantages of this policy.

➢ Relate Macau’s immigration and imported labour policies.

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39. School Resumption

➢ Upon school resumption, the following instructions are given to teachers:

(1) No assessment should be made in the first two weeks. During this period,

lessons should focus on revision and consolidation of topics learnt.

(2) In the Second Term, formative assessment approach will be used. Final

examination will be cancelled. Frequency of test will be limited to 1 time for

each subject. Higher weighting will be put on short class practices and

assignments.

40. Lesson 51-52

Date 4 May 2020 Lesson 51-52

Topic Arrangement about learning of the subject after school

resumption

BAA -

[On the first day of school resumption, a counselling session is arranged in the first period

of the day. Part of the lesson time of Lesson 51 is used for this purpose.]

➢ Ask students the following question. “What is the economic effect when school is

resumed?”

➢ Students are asked to discuss with each other the effect. Hints will be given to help

students in the assessment of the situation.

➢ Encourage students to think like economists. Everything is related to Economics as it

is a science of choices.

➢ Possible answers include:

✓ Increased usage of public transport (students going to and back from school)

✓ Increased revenue for restaurants (students eating out during lunch)

✓ Parents can work in their normal hours (some parents have to take no pay leave

to take care of students)

✓ Increased revenue for tutorial centres

➢ Discuss with students the economic effects of the “working from home” arrangement

that is used worldwide during this pandemic. Ask students to also think of the long-

term effects on the change of jobs market.

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➢ Inform students about the arrangement in learning the subject after school

resumption.

✓ Lessons during these two weeks are for consolidation.

✓ School will be extended to late July to compensate for the time lost.

✓ There is not examination in the second term.

✓ There will only be one test in mid-June.

✓ A substantial proportion of the grade will be made up of class practices and

performance during lessons.

✓ The proportion that each term contributes to the final grade will be adjusted.

✓ Pearson Edexcel GCE/IAL/IGCSE exams are cancelled but grades will be predicted

using internal results.

➢ Mention that in the next lesson, we will discuss the article we have read in the last

week of online learning as well as recap what we have learnt during the school

suspension period.

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41. Lesson 53-54

Date 7 May 2020 Lesson 53- 54

Topic Globalisation

International Relationship

Labour Market

Recap the topics and concepts learnt during the school

suspension period

BAA

Learning Objectives

➢ Be aware of happenings around the world

➢ Understand the forces that affect government

policies

➢ Build up skills in evaluating government policies

from different perspective

➢ Recap the topics and concepts learnt during the

school suspension period

Difficult points

➢ Identify short term and long

term effects of government

policies

Teaching Strategies

Discussion of the Article Assigned

➢ Discussion of the article on "Trump says immigration order will apply only to green

cards and will last 60 days" (CNN, 2020)

➢ Invite students to give a summary of the article.

➢ The article is about pausing immigration for those seeking permanent residence (green

cards) for 60 days.

➢ Ask students to evaluate the effects of this executive order by Trump. Students’

answers include:

✓ Limit the increase in labour force during these times to protect jobs for locals.

✓ Enable workers who have lost their job due to the pandemic to find a new one.

✓ Control the flow of foreigners into the country during these risky times.

✓ Give confidence to people in the country that the Government is standing with

them and understand their condition.

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✓ A sudden change in policies may undermine trust towards the Government.

✓ Immigrant advocates condemn that the executive order is fanning anti-immigrant

flames.

✓ The imported labour may be taking up jobs that US citizens do not want.

➢ Relate Macau’s immigration and labour policy during the pandemic. Ask students what

the most notable policies are during this period. Give hints to students if they are not

well aware of the situation.

➢ Students’ answers include:

✓ The Macau Government publicly commented that corporation, especially large

ones, should take up social responsibility and help each other through the difficult

time.

✓ The Macau Government offered grants to companies to help them remain in

business so that employees would not be sacked. However, many companies are

being criticized for taking the grants and at the same time requesting employees

to take no pay leave.

✓ In the early outbreak of the pandemic, many imported labour left Macau and

went back to their home country (both mainland China and other countries). The

Macau Government later only allowed Macau citizens to come back, blocking all

foreign employees (except from mainland, Hong Kong and Taiwan).

➢ Comment on students’ opinion.

Recap of the topics and concepts learnt during the school suspension period

➢ Give each student a table of different topics and a list of concepts learnt.

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➢ Ask students to put all concepts into the corresponding boxes. In the first phase,

students are not allowed to look at the textbooks and notebooks, but they are

allowed to discuss with others. Student should recall from their memory what they

have learnt.

➢ They should have put most points, leaving some that they are most uncertain. In the

second phase, they are allowed to look at the textbooks and notebooks for 3

minutes, and then continue to complete their task.

➢ After they finish, we will check the answer together. Some points can be present in

more than one boxes as economic concepts are very much interrelated.

➢ Ask students if they have any doubt/question about these concepts. Clarify any

misconception if necessary.

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42. Lesson 55-56

Date 13 May 2020 Lesson 55-56

Topic Trading Blocs (4)

BAA D-4, D-7, D-6

Learning Objectives

➢ Explain the main aim of trading blocs in general

➢ Define and explain different types of trading

blocs

➢ Assess the pros and cons of countries joining

the trading blocs (including member and non-

member of the blocs)

➢ Understand the trading blocs RCEP, COMESA,

SAFTA and Mercosur

Difficult points

➢ Understand the relationship

within and beyond trading blocs

is not only economic in nature,

but also political

Teaching Strategies

Before the lesson

➢ Students should have already research on the assigned trading bloc. Each have to print

out a copy of their work and bring it back to class. They work should be limited to one

page in length. They are encouraged to include the most significant information,

without putting in too much trivial items.

During lesson 55-56

➢ In the first phase, students take their own work and sit in groups of 3 or 4, with those

working on the same trading bloc.

➢ Students read each other’s work and supplement their own work with good points that

others have. They should be aware that their work should contain the following points:

1. Basic details of trading bloc

- Significance of trading bloc on global trade

- Member countries of the trading bloc

- Objectives of the trading bloc

2. Impact of the trading bloc on the member / non-member countries

3. Two points of evaluation

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- Negative impact

- Criticisms

- Opportunity costs

➢ The first point is quite easy and involves only hard facts. The impact and evaluation

part involves judgements and students have to go through a lot of different sources to

reach their conclusion.

➢ In the second phase, students are to go into groups of 4, with those who are working

on different trading blocs. Thus each group should consist of students working on each

of the 4 trading blocs. [JIGSAW arrangement]

➢ Students will share in their group their findings and judgement on each of the 4 trading

blocs.

➢ Advise students to pay attention to others and learn about other trading blocs. It is

because at the end of the lesson, they are going to work on an exercise about these

trading blocs.

➢ In the third phase, ask students “Which is the best trading bloc among the 4?”. Instruct

students to have a debate and choose the best one. Give support for their choices.

➢ Students may make the judgement according to the following criteria:

✓ Number of member countries

✓ International status of the member countries

✓ Economic strength (GDP of member countries) of the trading bloc

✓ Political strength of the trading bloc (how well it is at bargain with non-member

countries)

✓ Aim of the trading bloc

✓ Relationship (level of integration) of the member countries

➢ While it is correct in using these criteria for judgement, it is not meaningful to choose

the “best”. They “best” trading bloc is the one that will best serve your country. “Our

best” is not “your best”.

➢ Complete the Google Form Exercise on the topic of Trading Blocs (refer to appendix 14)

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43. Lesson 57-58

Date 18 May 2020 Lesson 57-58

Topic The World Trade Organisation and World Trade Patterns (1)

Recap the topics and concepts learnt during the school

suspension period

BAA D-4, D-7, D-6

Learning Objectives

➢ Compare the trend in international trade

between developed and developing countries

➢ Justify the reasons why world trade has

increased enormously

Difficult points

➢ Students do not have a

systematic way to read news

about the world. They rely on

bits and pieces of information

that they come across.

Teaching Strategies

Before the lesson

➢ Ask students to revisit all google form exercise completed during the school suspension

period and get ready for a class practice on those questions.

During lesson 57-58

➢ Ask students if they know the game “Unchartered Waters (大航海時代)”. If so, let they

share about the game. Commented that it is a game in my childhood memory. And that

it is my first encounter with the concept of international trade.

➢ The game is based on the time of “the age of discovery” in the 15th to 17th century. At

that time, different countries raced in the discovery of new land. The main aim of the

game is to sail in unknown waters and draw the most accurate map, discover cities and

hidden wonders, buy and sell exotic goods, etc.

➢ World trade started to flourish when countries in Europe started building large trade

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ships, and building colonies around the world.

➢ Ask students to imagine that we are living in that period of time. As time emerge, how

has the pattern of world trade changed? Give students some time for discussion and

writing down their points for sharing.

➢ After some free sharing, guide students to focus on the points listed.

✓ Volume of Trade: The volume of international trade goes up exponentially since

the 60’s. It is now very difficult to find a country that is not heavily involved in

imports and exports. Reasons for such increase is already learnt in the chapter of

“International Trade”.

✓ Trade Barriers: Although different countries protect their own economy with

different methods, trade barriers are seen to be lowered when compared to the

past.

✓ Trade Agreements: Different trading blocs are established and trade agreement

signed among different countries. These agreements are promised of a stable

trading term for the parties involved, which increase confidence and thus trade

between countries.

✓ Travelling: Travelling is no longer limited to those who are wealthy. An average

person is able to travel to other countries with a fairly affordance price. Travelling

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allows consumers to understand a place in person, but not only from the stories

of others.

✓ Consumer Awareness: Better communication makes information available to the

general public. Consumers are well informed about the markets around the world.

They welcome greater choice and recognise that imports can satisfy a growing

number of needs and wants.

✓ Foreign Direct Investment: MNCs and FDI brings the world closer together by

sourcing goods and services in different parts of the world.

✓ Migration: The movement of people is also an important international pattern.

Countries attract global talents as well as import labour for jobs that are difficult

to fill. People also migrate for better opportunities and higher income offering.

✓ Type of Goods for Trade: International trade has made countries focusing on

producing goods/services in which they have comparative advantage. There is

also a significant change in the type of goods that developing an developed

countries produce.

➢ Ask students to name the countries of the national flags shown:

➢ Show studnets a list of major export and ask them to match the countries to these

exports.

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➢ The answer is as follows.

➢ Apart from the differences in the types of goods produced, discuss with students other

trade related patterns observed in developed and developing countries. In the

discussion, ask students to cite examples of countries that align and unaligned with the

observation.

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Class Practice on Previous Google Form Exercises

➢ Students will work on a 10-question multiple choice class practice. Questions are

extracted from previous google form exercises completed during the school

suspension online learning period (please refer to Appendix 15 for the class practice)

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44. Lesson 59-60

Date 21 May 2020 Lesson 59-60

Topic The World Trade Organisation and World Trade Patterns (2)

BAA D-4, D-7, D-6

Learning Objectives

➢ Briefly explain the history of GATT and WTO

➢ Explain the roles and functions of WTO

➢ Analyse some of the criticisms against WTO

particular those from pressure group

Difficult points

➢ Identify relevant and useful

information in their research

➢ Find information from different

creditable sources to see the

whole story of their assigned

cases

Teaching Strategies

Before the lesson

➢ Ask students to pre-read chapter 40 “The World Trade Organisation and World Trade

Patterns” (page 325-328).

During Lesson 59-60

➢ Watch the video “Looking back at 20 years of multilateral trade” by World Trade

Organisation [https://www.youtube.com/watch?v=KKi0lW3boqE].

➢ Distribute this note to students and ask them to fill in the blanks according to what the

video said, as well as what they have read at home before the lesson.

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➢ Briefly go through the points after students complete the blanks.

➢ Comment that WTO plays an important role in promoting international trade and

reduce protectionism around the globe. However, it is not without criticism.

➢ Ask students to brainstorm and write down the major criticism that WTO receives.

Invite students to share their ideas in the class.

➢ Comment that the most common criticism is that WTO’s rules most favour developed

countries and MNCs. While free trade is beneficial on the whole, it hurts smaller

economies when they are still developing. Developing countries need protection

before their industries can develop muscles to compete with MNCs.

➢ Ask students to complete the notes for the criticisms against the WTO.

➢ Watch the video “How the US obstructs the World Trade Organisation” by DW news.

[https://www.youtube.com/watch?v=8cBJFUpK_xI]

➢ Comment that whether WTO can function will and really fight for universal benefits

depends on the genuine cooperation of all member countries.

WTO Case Studies

➢ Give information on the next task.

➢ Comment that one of the main functions of the WTO is to settle trade disputes

between members.

➢ In groups, students are to research on one of the cases given. Only a brief introduction

of the case is given at the moment.

Case 1:

Airbus-Boeing trade dispute

The US filed a case with the World Trade Organization in 2006 claiming that Airbus,

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which is jointly owned by Germany, France, Spain and Britain's BAE Systems, had

received $22 billion (€19.4 billion) in illegal subsidies.

The EU retaliated with a counter case, alleging that Boeing had received $23 billion in

"trade-distorting" subsidies in the US.

Case 2:

US-China Trade War dispute

The US government applied its anti-dumping regulations against China, which involving

trade limits on Chinese products that are or were sold below market value. An anti-

dumping duty will be imposed on Chinese goods.

In response, China reported the case to the WTO’s dispute settlement body and ask for

retaliatory tariffs on U.S. goods.

Case 3:

Canada–Australia trade dispute over imports of fresh salmon

In 1975, Australia imposed a ban on imports of fresh salmon under a quarantine

regulation except for the imports of non-fresh salmon, including salmon that had been

heat-treated by canning (see salmon cannery) or smoking.

In 1995, Canada made a complaint to the World Trade Organization about Australia's

restriction on imports of fresh salmon.

Case 4:

European Community, US and Japan trade dispute over sound recordings

In 1996, the European Community and US filed complaints with

the WTO against Japan concerning their distribution and protection of sound

recordings, including those of The Beatles, The Who, Eric Clapton, Leonard

Bernstein, Berlin Philharmonic Orchestra and Vienna Philharmonic Orchestra in

circulation in Japan.

Japan was accused of violating Article 22.1 of the Uruguay Round of the GATT, as well as

some of the articles of the TRIPS Agreement.

➢ Students are provided with iPad of their research work during lesson. They can

continue at home and bring back their work next time for the task.

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45. Lesson 61-62

Date 26 May 2020 Lesson 61-62

Topic The World Trade Organisation and World Trade Patterns (3)

BAA D-4, D-7, D-6

Learning Objectives

➢ Understand the function of the WTO in settling

trade dispute through looking in the cases it

handled in the past

Difficult points

➢ Identify relevant and useful

information in their research

➢ Find information from different

creditable sources to see the

whole story of their assigned

cases

Teaching Strategies

Before the lesson

➢ Students have to finish their research on the assigned cases of trade disputes.

During lesson 61-62

➢ Based on students’ research work, they have to answer the following question

regarding their case.

With reference to the cases above, answer the following questions:

1) Explain the argument(s)/reason(s) made by country(ies) over the complaint /

use of protectionist measures.

2) What is the ruling made by the WTO? (does not apply to case 4)

3) What is the outcome of the trade settlement in case 4? (apply to case 4 only)

4) Analyse the likely impact of the WTO rulings/trade settlement to the

countries.

➢ Students have to attempt the questions (1) in the form of an electronic poster and (2)

make a short oral report.

➢ The template of the poster is given to students.

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➢ Students have to send their electronic posters to the class.

➢ All students have to read the posters of other groups at home.

➢ Students have to prepare a 5-minute oral report about their case and the findings.

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46. Lesson 63-64

Date 29 May 2020 Lesson 63-64

Topic The World Trade Organisation and World Trade Patterns (4)

BAA D-4, D-7, D-6

Learning Objectives

➢ Understand the function of the WTO in settling

trade dispute through looking in the cases it

handled in the past

Difficult points

➢ Evaluate other group’s

presentation

Teaching Strategies

➢ Students in groups take turns to present their electronic poster and introduce to the

class about the assigned case and their findings.

➢ Other groups will ask questions after the presentation. Good questions will be awarded

with bonus points on their own presentation.

➢ Each student will assess the quality of others’ posters and presentation.

➢ Give comments to students’ presentation according to the following points:

Case 1: Airbus-Boeing trade dispute

1) Explain the argument(s)/reason(s) made by country(ies) over the use of

protectionist measures.

US / EU offers subsidies to protect the domestic aircraft manufacturers

→ subsidies make costs of production lower → makes aircraft

manufacturers more competitive → able to export aircraft overseas

2) What is the ruling made by the WTO? (does not apply to case 4)

WTO has ruled that both sides unfairly subsidized their aircraft makers

and gave permission for US / EU to counteract the harms caused by

imposing tariffs on selected range of goods and services.

3) Analyse the likely impact of the WTO rulings/trade settlement to the

countries.

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U.S. issues a list of $21 billion of EU products from which any WTO-

approved tariffs could be drawn, ranging from planes to food and

handbags, to counteract $11.2 billion of harm it says EU subsidies cause

the U.S. each year.

The EU issues its own $20 billion list of U.S. imports that could face

tariffs for damage from U.S. subsidies.

Case 2: US-China Trade War dispute

1) Explain the argument(s)/reason(s) made by country(ies) over the use of

protectionist measures.

US: China dumps its goods below costs → it hurts the competitiveness

of the US domestic industry → anti-dumping duties are needed to raise

the cost of Chinese exports as a counteracting measure to the dumping

2) What is the ruling made by the WTO? (does not apply to case 4)

China secured the World Trade Organization’s go-ahead to impose $3.6

billion in sanctions against the US. The amount is about half of what was

requested by China, which argued that some U.S. anti-dumping rules

were illegal.

3) Analyse the likely impact of the WTO rulings/trade settlement to the

countries.

The rulings give China the rights to impose $3.6 billion worth of goods

against US → it makes some of the affected US goods uncompetitive →

China is able to compensate some of the losses caused by anti-dumping

duties

US has to retract its anti-dumping duties → has to directly compete with

Chinese goods and services → it may hurt the US domestic firms

Case 3: Canada–Australia trade dispute over imports of fresh salmon

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1) Explain the argument(s)/reason(s) made by country(ies) over the use of

protectionist measures.

The use of a ban (partial embargo) has hurt Canadian fishing industry →

unable to export its fish cuts revenue of the fishing companies in Canada

→ some fishing companies may shut down

2) What is the ruling made by the WTO? (does not apply to case 4)

WTO dispute resolution favored Canada and determined that

the Agreement on the Application of Sanitary and Phytosanitary

Measures (SPS Agreement) did not allow Australia's import ban. The

WTO ordered Australia to lift its ban and increased quarantine

requirements not only for salmon, but for imports of other species of

fish as well.

3) Analyse the likely impact of the WTO rulings/trade settlement to the

countries.

Australian has forced to lift it ban against fresh salmon from Canada →

imports of fresh salmon and other species of fishes post big challenge

for the Australian fishing industry → some fishing companies in

Australia may shut down

Fishing industry in Canada can now enter the Australian market →

regain the market share lost and start to earn profit

Case 4: European Community, US and Japan trade dispute over sound

recordings

1) Explain the argument(s)/reason(s) made by country(ies) over the use of

protectionist measures.

EU and US: Japan violating the copyright laws has hurt the sound

recording industries in EU and US → it hurts the revenue of the

recording companies

2) What is the outcome of the trade settlement in case 4? (apply to case 4

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only)

Japan has entered a dispute settlement with EU and US and agreed to

modify their copyright laws to protect the rights of a recording from

their country for at least fifty years after the end of the calendar year.

3) Analyse the likely impact of the WTO rulings/trade settlement to the

countries.

Japan has to modify its copyright laws → local companies now have to

pay the copyright rights to use the sound recordings from US and EU →

results in higher costs

The sound recording companies in US and EU can recoup some of the

revenue lost and have a higher stream of revenue in the future by selling

licenses to Japanese companies

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47. Lesson 65-66

Date 3 June 2020 Lesson 65-66

Topic Exchange Rates and their Determination (1)

BAA -

Learning Objectives

➢ Define and quote the exchange rates against

basket of currencies for reference

➢ Recognise the value of the currencies is

determined by demand-supply interaction

Difficult points

➢ Not applicable

Teaching Strategies

➢ Introduce the topic of the lesson as “Exchange Rate”

➢ Ask student why there is exchange rate. Comment that money is used as a medium of

exchange by every country has their own currency as well as their own way in valuing

goods and services.

➢ When international trade begins, buyers and selling from different countries have to

deal with the difficulty that they are using “different money”. Exchange rate, therefore,

can be regarded as the price of a currency in term of another currency.

Activity: Do you know these currencies?

➢ Students participate in different activities of the lesson in groups. Each correct answer

earn them points.

➢ Q1 (10%): Ask students if they know the name of the currencies of these countries.

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➢ Show the answer to students and ask them to mark down the number of correction

answers. Invite students to read the name of the currency.

➢ Symbols are used for the currencies for easy and quick reference, especially in

countries where international trade is common.

➢ Q2 (10%): Ask students to put in the table the symbol of each currency.

➢ Show the answer to students and ask them to mark down the number of correction

answers.

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➢ Show students some other currency symbols. Ask them to notice that some symbols

are similar, but indeed representing different currencies (ie. UK pound sterling and

Turkey Liras).

➢ Ask students if they know the following currency symbol.

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➢ Comment that it is the symbol of Bitcoin. Bitcoin is a cryptocurrency that exists on the

Internet. It is a decentralized digital currency without a central bank. Just like other

currencies, Bitcoins can be exchanged for other currencies, products, and services. The

price of Bitcoin increases drastically in recent years. Below is the price (exchange rate)

history of Bitcoin from 2013 till now.

➢ Q3 (10%): Going back to the 10 currencies, ask student to rank the value of them from

highest to lowest.

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➢ Show the answer to students and ask them to mark down the number of correction

answers.

➢ In the table, the value of the currencies is ranked according to how much 1 unit of the

currency in terms of Hong Kong Dollar. The ranking will change when the exchange rate

of the currencies change.

➢ A typical exchange rate quotation shows as follows:

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➢ Teach student how to read a quotation and the components of common exchange rate

quotation.

Exchange Rate and Currency Conversion

➢ Q4 (20%): Ask students to attempt the calculation of the following questions. Check

the answer after they finish and ask them to mark down the points they get.

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➢ In the questions, the exchange rate is shown as an equation (ie. £1=€1.1).

➢ Q5 (16%): Ask students to rewrite the exchange rate quotation in the quotation format

we have learnt just then.

➢ Check the answer after they finish and ask them to mark down the points they get.

Changes in Exchange Rate

➢ We know that exchange rate changes all the time. Ask students “why does exchange

rate change?”

➢ Invite students to share their opinion. Guide students that we have mentioned

exchange rate is the price of a currency in terms of another currency.

➢ In general, what affect the prices? Demand and Supply.

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➢ Comment that when demand/supply changes, exchange rate change.

➢ Q6 (4%): When demand and supply of a currency changes, how will exchange rate be

affected?

➢ Students should be very familiar with the effect of a change in demand/supply on price

(exchange rate). Check the answer after they finish and ask them to mark down the

points they get.

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➢ Conclude on what has been learnt in the lesson.

➢ Maximum score the activities in the lesson is 70%. Ask students to submit the score.

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48. Lesson 67-68

Date 8 June 2020 Lesson 67-68

Topic Exchange Rates and their Determination (2)

BAA -

Learning Objectives

➢ Explain the factors affecting demand and

supply of a currency

➢ Use the demand supply diagram to show the

effect of a change in demand and supply of a

currency on exchange rate

Difficult points

➢ Distinguish between a change

in demand and supply of a

currency, as it is very easy to mix

up

Teaching Strategies

➢ Recap with students what we have learnt in the last lesson about changes in exchange

rates. Ask students to tell the class how changes in demand and supply affect exchange

rates.

➢ Ask students, “What are the factors affecting demand and supply of a currency then?”

➢ Let students discuss and share with the class points that they have in mind.

➢ An increase in demand means that at the same price level, you are willing to buy more

of a good. Just like the demand of good, the demand of a current applies the same

mechanism. At the same exchange rate, you are will to buy more currency. There are

different reasons why a person/company/country would like to buy more of another

country’s currency, thus bring an increase in demand. The most important reasons are

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as follows:

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➢ All 4 points involve wanting to invest/spend RMB. Importers/investors/speculators in

different countries have to convert their currency to RMB in the foreign exchange

market. Comment to students that “wanting to convert to RMB in foreign exchange

market” is the key. Tell them to remember this phrase first for later use.

➢ Summarize the above factors affecting the demand for a currency and ask students if

they have any doubt and difficulty.

➢ Ask students to draw the demand supply diagram of Pound Sterling in terms of Dollars.

Remind students that the axis for price should become the exchange rate ($ per £).

➢ When there is an increase in the demand of a currency, the demand curve shifts to the

right/outwards/upwards. The currency appreciates and equilibrium quantity goes up.

➢ Students should be able to draw this diagram correctly and write the explanation of it,

as it is no different from other demand-supply diagram. Show students the following

for their checking.

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➢ With minimal assistance given, ask students to draw the demand supply diagram to

show the effect of a decrease in demand for Pound Sterling in terms of Dollars.

➢ Walk around the classroom and check students’ answer. Make sure they write the

effect of exchange rate and quantity correctly.

➢ Give the following cases to students to determine the effects on demand. Ask

students to decide if demand for HKD will increase or decrease. Check with students

the answer after they have completed the exercise. Ask students to pay attention to

how the effect is determined, as it would be more difficult when we add effect of

supply as well.

➢ Comment that factors affecting supply of a currency is theoretically the opposite of

factors affecting demand for a currency. Show students the comparison. Demand is

affected by the willingness to buy a currency, while supply is affected by the need to

sell the currency.

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➢ Ask students to refer to the first factor affecting the demand for a currency (left side)

and try to write down the corresponding factor affecting the supply of the currency

(right side). The first one will be done together with students. The points should be a

corresponding pair.

➢ Ask students to continue with the remaining 3 factors. Remind students again that

changes in demand is related to buying a currency, while changes in demand is related

to selling the currency. Check that students are writing up the note correctly. Ask

students to review their peers’ work.

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➢ Ask students to draw the demand supply diagram of Pound Sterling in terms of

Dollars to show an increase in the supply of a currency. The supply curve shifts to the

right/outwards/downwards. The currency depreciates and equilibrium quantity goes

up.

➢ Students should be able to draw this diagram correctly and write the explanation of it.

Show students the following for their checking.

➢ With minimal assistance given, ask students to draw the demand supply diagram to

show the effect of a decrease in supply for Pound Sterling in terms of Dollars.

➢ Walk around the classroom and check students’ answer. Make sure they write the

effect of exchange rate and quantity correctly.

Kahoot! Check-up Exercise

➢ Give students a check-up exercise with Kahoot!. The exercise is to check students’

knowledge on the effect on demand and supply of a current. After each question,

students will be asked to name the factors affecting the change. Explanation will be

given the clear any doubt and misconception spotted in the exercise.

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49. Lesson 69-70

Date 11 June 2020 Lesson 69-70

Test 1 for the Second Term

Chapter 33 Supply side policies and government controls

- Definition

- Examples of supply side policy

- Evaluation on impacts of a specific supply side policy (Education and training;

lowering business tax to encourage investment; Deregulation)

Chapter 35 Globalisation

- Definition

- Reasons for globalization

- Impact of globalization and global companies

Chapter 36 MNCs & FDI

- Features of MNCs

- Definition of FDI

- Advantages and disadvantages of MNCs/FDI

Chapter 38 Protectionism

- Definition of protectionism, tariffs, embargo, quota, administrative barriers and

subsidies

- Reasons for protectionism

- Methods of protection (tariffs, quotas and subsidies)

- Impact of tariffs, quotas and subsidies on markets (graphical explanation)

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50. Lesson 71-72

Date 16 June 2020 Lesson71-72

Topic Exchange Rates and their Determination (3)

BAA -

Learning Objectives

➢ Distinguish and explain different exchange rate

systems

➢ Understand the recent phenomenal of the

depreciation of RMB against US as a result of

US-China trade war

➢ Understand Hong Kong’s Currency Battle

during 1998 amid the Asian Financial Crisis

Difficult points

➢ Relate exchange rate systems

to international trade, and how

it affect the overall economic

and financial system around

the globe

Teaching Strategies

Types of exchange rate system

➢ The currency market is a network of markets for the buying and selling of currencies.

The exchange rate system is how different countries participate in the market.

➢ Introduce these two types of exchange rate system to students: the fixed/pegged

exchange rate and the flexible/floating exchange rate.

➢ The former is a system where exchange rate relative to a chosen currency is fixed. The

latter is a system where exchange rate fluctuate solely according to market forces of

demand and supply.

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➢ Give examples of the fixed/pegged exchange rate. Comment that although it is

against the free market forces, a fixed rate has its own advantage. For small and

developing countries. If exchange rate fluctuates according to the market, it will be

very unstable and discourage investment and trade.

➢ Ask students if they know any other currency that uses a fixed/pegged exchange rate

system. They may mention the Macau Patacas and Hong Kong Dollar. Comment that

we will look at the Hong Kong Dollar later during the lesson.

➢ Give examples of countries that uses a flexible/floating exchange rate system.

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➢ Show students that the two exchange rate systems introduced are in the two end

points of a scale representing how much exchange rate is fully controlled and wholly

affected by market forces.

➢ In between the two end points are systems that are mostly controlled and those that

are mostly free.

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➢ Introduce the other two types of exchange rate system.

➢ Give examples of countries using the managed floating exchange rate system. It can

be understood as a mostly free systems that works based on market forces. But the

government will “manage” the exchange rate level to serve the purpose of stability.

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➢ China’s currency, the RMB is not freely traded in the currency market. It is accused to

be heavily managed.

➢ Let students read the article “China could depreciate yuan further if trade war

escalates, IMF says, rebuking currency manipulator charge”. (Tang, 2019)

[https://www.scmp.com/economy/china-economy/article/3024921/imf-china-could-

depreciate-yuan-further-if-trade-war]

➢ Discuss with students the content of the article. China has long been accused of

manipulating its own currency and deliberately making it weak so that export can be

kept at a high level. If RMB is kept low, the price of China’s export would become more

competitive.

➢ In the article, it is mentioned the US has imposed higher tariffs on China’s export into

US. China’s exchange rate has then been depreciated in hope to offset the effect of the

tariff and boost export.

➢ Ask students to discuss if the recent depreciation of RMB is an effect of the trade war

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or the tactics during the trade war.

➢ Ask students to discuss what happen if RMB is allowed to be traded freely and

exchange rate is wholly determined by market forces of demand and supply.

➢ Cite an example of semi-fixed exchange rates. Hong Kong dollar’s peg with the US is

indeed not a fixed rate system. The price of USD is allowed to slightly fluctuation within

a range.

➢ During the Asian Financial Crisis, Hong Kong is being attacked by global speculation

money, hoping to gain a fortune by breaking Hong Kong Dollar and the HK stock

exchange. Lucky, the attack was unsuccessful.

➢ Watch videos about the incidence to understand what happen at that time and how

Hong Kong prevail in the battle.

➢ Watch the TV news report in 2009 about George Soros admitting defeat in the Hong

Kong Currency Battle back in 1998. (TVB News, 2009)

[https://www.youtube.com/watch?v=aWkP1mcs2gE]

➢ Watch the video by New Money Talks about how Hong Kong won the Hong Kong

Currency Battle. (New Money Talks, 視知 TV, 2018)

[https://www.youtube.com/watch?v=gn3QUoEALoM]

➢ Hong Kong Dollars is not the only currency attacked at that time. Watch the next

video to understand how Thailand is defeated by its own currency.

➢ Watch the video by New Money Talks about how Thailand’s currency was attacked by

George Soros during the Asian Financial Crisis. (New Money Talks, 視知 TV, 2018)

[https://www.youtube.com/watch?v=dtIgIuOnbl0]

➢ Make conclusion about which exchange rate system is better.

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51. Lesson 73-74

Date 19 June 2020 Lesson 73-74

Topic Impact of Changing Exchange Rate (1)

BAA -

Learning Objectives

➢ Describe how exchange rate changes, either

driven by market or government

➢ Explain the difference between

revaluation/devaluation and

appreciation/depreciation

➢ Assess the impact of exchange rate

appreciation and depreciation on the current

account

➢ Evaluate the government policies and its

limitation in controlling the exchange rate

➢ Examine the role of PED and YED on the

exchange rate and current account balance

Difficult points

➢ Make assessment on the

change in current account

balance when there are

multiple factors affecting it

Teaching Strategies

➢ Recap on the concepts we have learnt in previous lessons. Ask students what will

affect the demand of a currency. And the supply of a currency?

➢ Students should be able to give answers including:

✓ Demand for exports (demand) and imports (supply)

✓ Inward FDI (demand) and Outward FDI (supply)

✓ Attractive home interest rate (demand) and attractive foreign interest rate

(supply)

✓ Speculation (demand and supply)

➢ Comment that the above factors affect the demand and supply of a currency, and at

the same time, changes in currency also affect the above items. The market correct

itself if there is no intervention. Market forces balance the situation through time.

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➢ Before going on to the topic of the lesson, challenge students if they know the

difference between appreciation and revaluation; as well as depreciation and

devaluation.

➢ Let students discuss and share in the class. Comment that “appreciation”

and ”depreciation” refer to the change in exchange rate due to market forces.

“Revalution” and “devaluation”, however, refers to the government’s effect in making

exchange rate higher or lower.

➢ Ask students, “When there is a fall in exchange rate, what will happen to the current

account balance?”

➢ Students may directly answer that current account will improve/deteriorate.

However, it is important for students to remember that good development of

answers takes into account more than one concepts learnt.

➢ Encourage student to recall the components of the current account and determine

the effect of exchange rate on each of those. In particular, students have to consider

the effects on exports and imports.

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➢ This time, ask students to determine the effect of a rise in exchange rate on the

current account balance. They should be able to work it out step by step, with

reference the case of a depreciation exchange rate. Conclusion: when exchange rate

rises, balance of trade/ current account balance will be worsened.

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➢ Challenge students about the accuracy of our conclusion. Allow some time for

students to discuss on my query.

➢ Invite students to share their opinion in the class.

➢ Comment that our conclusion is based on the assumption that exports and imports

are price elastic. That means a decrease in price of export due to the depreciation of

currency will be met with a more than proportional increase in quantity sold. This

assumption is correct only to some product type.

➢ Nevertheless, it is common that when a country suffer a prolonged and large trade

deficit, it can devalue/depreciate its currency to tackle the situation. The explanation

below tells how a government can do it.

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➢ Challenge students “If trade deficit is so easily solved, why does the US struggle so

many years of trade deficit with China?”

➢ Give students some time for discussion and invite them to share their opinion with

the class.

Consolidation

➢ Ask students to complete the Google Form Exercise on the topic of Exchange Rate and

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its Determination (refer to appendix 16).

➢ Go through the answer immediately after they have finished. Explain common

mistakes and clarify misconceptions.

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52. Lesson 75-76

Date 24 June 2020 Lesson 75-76

Topic Test Correction

Impact of Changing Exchange Rate (2)

BAA -

Learning Objectives

➢ Calculate and convert exchange rates

➢ Draw the demand supply diagram to show the

appreciation and depreciation of a currency

➢ Assess the impact of exchange rate

appreciation and depreciation on the current

account

Difficult points

➢ Assess how PED and YED affect

the current account when

there is a depreciation/

appreciation of a currency

Teaching Strategies

Before the lesson

➢ Students are asked to revise for the class practice. They have to know (1) how to do

conversion of exchange rates, (2) draw the demand supply diagram for the effect of

exchange rate when there is a change in the demand/supply of a currency, and (3)

evaluate the effect of the depreciation/appreciation of a currency.

Test Corrections

➢ Clarify misconceptions and explain common mistakes identified in students’ answers

in the test.

➢ Discussion on evaluation questions and comment on how to improve the answering

skills of this question type.

➢ Share with students answers that are of high quality and encourage students to read

others’ answer and learn from each other.

Class Practice on Exchange Rate

➢ Ask students to complete the following class practice:

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53. Lesson 77-78

Date 30 June 2020 Lesson 77-78

Topic Supplementary topic: Movie – In Time (1)

BAA -

Learning Objectives

➢ Explain the functions money in our modern

economy

➢ Identify the factors affecting the distribution of

wealth

Difficult points

➢ Relate the real world with the

fictional world in the movie.

Find the resemblance of the

two

Teaching Strategies

➢ Give students a general introduction of the movie “In Time”. Mention that in the movie,

time is used as a medium of exchange. People continue to live if they have time and

die when they run out of time.

➢ Ask students to pay special attention to the following:

✓ How time fulfil the function of money in the movie

✓ How similar/different is the distribution of wealth in the movie with our real world

➢ Encourage students to mark down any questions or thoughts they have about the

movie

➢ Watch the movie “In Time” together (In Time, 2011).

Assignment

➢ Ask students to revisit what they have learnt about “functions of money”. Write down

the functions of money on their notebook and bring it back in the next lesson.

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54. Lesson 79-80

Date 3 July 2020 Lesson 79-80

Topic Supplementary topic: Movie – In Time (2)

BAA -

Learning Objectives

➢ Explain the functions money in our modern

economy

➢ Identify the factors affecting the distribution of

wealth

Difficult points

➢ Compare the fictional world of

the movie with the

phenomenon we experience in

the real world

Teaching Strategies

Functions of Money

➢ Ask students to name the 6 functions of money:

✓ A medium of exchange

✓ A measure of value

✓ A store of value

✓ The basis of credit

✓ A unit of account

✓ A standard of postponed payment

➢ In groups, ask students to fill in the following form about how money and time fulfil

these functions in the real world and in the fictional world respectively.

➢ Invite students to share their answers and give examples in real world and in the

fictional world. Assist students when necessary. Suggested answers are given below:

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Distribution of Wealth (Income Inequality)

➢ Ask students to recall what they have learnt about income inequality in chapter 30

(lesson 27-28).

➢ Discuss with students that in the movie, the distribution of wealth is very extreme.

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The gap between the rich and the poor is enormous. The rich people have hundreds,

thousands or even more years that they can live forever if there is no accident. The

poor people live their lives by the day (with no more than 24 hours).

➢ In groups, ask students to suggest what makes the distribution of wealth so uneven in

the fictional world. Give more guidance to students if they have difficulties in

identifying the points.

➢ Invite students to share their ideas. Points might include, but not limited to, the

following:

➢ Ask students to notice the resemblance of the points to the real world.

The Movie Continued

➢ The movie ends with the main character trying to fight income inequality by robbing

credit facilities (banks). A great deal of time is taken out the facilities and given to the

poor for free.

➢ Ask students to give suggestions about how the story would continue. What will

happen to the society of different time zones. Ask students if inequality will be

successfully solved.

➢ Invite students to share what they have discussed in their groups. Accept any logical

answer and share the following if it is not mentioned by students.

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➢

Further Consideration

➢ Give the following statement

✓ “In the fictional world of the movie, being perfectly equal means that everyone

will live for exactly 26 years (nothing more nothing less).”

✓ “In our real world, wealth is indeed the accumulation of time.”

➢ Ask students, if they have time and interest, assess to what extend the two statements

is true. We do not have time to discuss it further in class. But students are encouraged

to do that among themselves.

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55. Lesson 81-82

Date 8 July 2020 Lesson 81-82

Topic Supplementary topic: Consumer Surplus and Producer

Surplus

BAA -

Learning Objectives

➢ Understand the meaning of consumer and

producer surplus

➢ Identify the factors affecting the size of

consumer and producer surplus

➢ Explain the change in consumer and producer

surplus when there is a change in price

Difficult points

➢ Illustrate and explain the

effects on consumer surplus

and producer surplus under

government intervention

Teaching Strategies

➢ Tell students that BTS is coming to Macau to hold a concert. And that I have some

tickets (official ticket box said that all seats are sold out). Ask students how much they

are willing to pay for the tickets.

➢ Students have to secretly write down the price they are willing to pay on a piece of

paper.

➢ Now tell students that the price of the tickets is $180 per seat. Ask students how many

of them has written down a price higher than $180.

➢ Ask them if they get the ticket for $180, how will they feel. They should mention that

they feel they get a bargain for the tickets.

➢ Comment to students that this feeling of getting a bargain (welfare) is called “consumer

surplus”.

➢ Every consumer has his/her utility obtained from different goods/services. Some value

the goods/services at a higher value while some value at a lower value. If the price of

the goods/services is lower than your utility, you will feel happier because you have a

“surplus” (welfare).

➢ The total consumer surplus is the sum of all individual consumer surplus that bought

the goods/services.

➢ Show the supply-demand diagram on the screen and ask students to shade the area

depicting consumer surplus.

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➢ Students should be able to show the consumer surplus as follows:

➢ Show the definition of consumer surplus

➢ Ask student “How about the orange triangle in the diagram? What is it?”

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➢ Hopefully, students are able to answer that it is the “producer surplus”. With reference

to the definite of consumer surplus, ask students if they know the definition of

producer surplus. Students should be able to come up with an answer similar to this.

➢ Ask students to draw the diagram properly in their notebook.

➢ Comment that in the diagram above, consumer and producer surplus looks pretty

much the same. It means psychologically, consumers and producers feel that they have

more or less the same bargain at the equilibrium price. Ask students if it is the case in

reality. Ask students how the demand supply diagram will look like if (1) the consumer

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surplus is higher; (2) the producer surplus is higher. Ask them to draw in their

notebook. Ask students what factors affect the size of consumer and producer surplus.

➢ Assist students if they cannot make the conclusion by themselves. Students should be

able to see that price elasticity of demand (PED) affects the size of the consumer

surplus while price elasticity of supply (PES) affects the size of producer surplus. The

lower the elasticity, the large the surplus.

➢ Consumer and producer surplus are important concepts when discussing the dffects

of different government interventions in markets. Changes in conditions of market

supply and demand will bring about changes in the level of consumer and producer

surplus (welfare).

➢ The government wants to impose tax on a product. Ask students to illustrative the

effect of the tax in their notebooks. Students should be able to show that supply

decreases, price goes up and quantity reduced.

➢ Do the following comparison with students:

No Tax After Tax

Consumer surplus (welfare) 1+2+3 1

Producer surplus (welfare) 4+5+6 6

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Government tax revenue - 2+4

➢ Note that after the tax is imposed, the surplus (welfare) of different parties added in

1+2+4+6. 3 and 5 is lost. We call this loss the “deadweight loss”. It is a loss of the

economy because tax is imposed.

➢ It is very important for the government to examine the size of deadweight loss before

any tax is imposed. It is also important to know how such a change would affect

consumer and producer surplus.

➢ In the case of a produce with high PED, a tax imposed would mean that consumers end

up bearing most of the tax burden. Encourage students to draw the diagram to confirm

this proposition.

➢ It is also important for producers to understand consumer and producer surplus. Going

back to our case of BTS concert tickets.

➢ Demand is high and inelastic as there are many “die hard fans” and are willing to pay a

premium price for the tickets. In this case, a secondary market emerges. People who

get the tickets at regular price can sell them to the highest bidder. Scalper tickets will

be available in the market (whether legal or illegal).

➢ Ask students to cite other examples where suppliers try to take away consumer

surplus. Some examples are: Apple Inc offers different variation of iPhones at different

prices; hotel booking websites offers different discounts at different time, etc.

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56. Lesson 83-84

Date 13 July 2020 Lesson 83-84

Topic Supplementary topic: Game Theory (1)

BAA -

Learning Objectives

➢ Understand as an introduction what Game

Theory is

➢ Participate in a game and understand the

difficulties of making decisions under different

forces

➢ Understand the concept of optimal strategy

Difficult points

➢ Identify the dominant strategy

and the optimal strategy for

the group

Teaching Strategies

Game of Eden in Action

➢ Students are divided into 9 groups and participate in the Game of Eden. [See appendix

17 for details of the game]

➢ Students are encouraged to score as high as they could, using strategies such as

bargaining, form alliances, or even cheating.

➢ After the game, students are invited to share their opinion of what their dominant

strategy is and what the optimal strategy for the whole class is (all choose Red).

Game of Eden Master Class

➢ Show students an extract of the final episode of Japanese TV series LIAR GAME season

2. It shows the strategic game play of the Game of Eden. Students are encouraged to

watch the whole episode at home. [http://www.gimyvod.com/video/83468/1-1.html]

(Liar Game: The Final Stage, 2010)

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57. Lesson 85-86

Date 21 July 2020 Lesson 85-86

Topic Supplementary topic: Game Theory (2)

BAA -

Learning Objectives

➢ Explain that game theory is a theoretical

framework for conceiving social

situations among competing players

➢ Know the basic assumptions of game theory:

all agents are rational and will strive to

maximize their payoffs

Difficult points

➢ Identify the dominant strategy

and the optimal strategy by

acting as a rational agent

seeking for maximum payoffs

Teaching Strategies

Before Lesson 85

➢ 5 students are invited to help setting up mini game booths for period 4.

➢ Helpers are briefed with the details of the games chosen.

➢ They are also invited to be the observer of strategies used during the games.

Lesson 85

➢ Introduce what game theory is.

➢ Explain the basic assumptions of game theory: all agents are rational and will strive to

maximize their payoffs

➢ Invite 2 students to do demonstration of the famous Prisoner’s Dilemma.

➢ Ask other students to identify the dominant strategy and the optimal strategy of the

group.

➢ Ask students to recall the Game of Eden and compare the strategies with those of the

Prisoner’s Dilemma. They should be able to conclude that it’s better to cooperate than

to defect.

Lesson 86

➢ The 5 students set up mini game booths. There will be 5 mini games:

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✓ Battle of the sexes

✓ The 21 flags game

✓ Diner’s dilemma

✓ Dollar auction

✓ Five pirates puzzle

[see appendix 18 for details of the games]

➢ Students go to these game booths to take part in the games. They will be given a score

according to win/draw/lose for each game.

➢ Students will mark down 1) their strategies; 2) reason for winning/losing; and the 3)

optimal strategy for the game.

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58. Lesson 87-88

Date 29 July 2020 Lesson 87 - 88

Topic Supplementary topic: Game Theory (3)

BAA -

Learning Objectives

➢ Different settings of game-play in game

theory: simultaneous/sequential; one-

off/indefinite; zero-sum/non zero-sum;

two/multiple players, etc

➢ Apply the strategies to real-world scenarios

such as pricing competition and product

releases

Difficult points

➢ Spot of the pattern of real-

world scenarios as different

types of settings in game theory

Teaching Strategies

➢ The game booths hosts are invited to share interesting observations during game play.

➢ Students are invited to share their strategies, reason for winning/losing and the

optimal strategy for the group identified.

➢ Recap the conclusion of Prisoner’s dilemma: it’s better to cooperate than to defect.

➢ Point out that some games are bound to have winners/losers. Not all games have win-

win situations.

➢ Introduce different settings of game-play in game theory:

✓ simultaneous/sequential

✓ one-off/indefinite

✓ zero-sum/non zero-sum

✓ two/multiple players

➢ Apply the strategies to real-world scenarios such as pricing competition and product

releases

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F. Evaluation and Recommendations Overall speaking, the year’s plan of F5 Economics is executed successfully. All topics are well

covered. Students’ results in school internal assessments are satisfactory. It is a pity that the

summer series for IGCSE examinations is cancelled due to the pandemic. Students do not

have a chance to prove the outcome of their learning through worldwide competition.

The overall objectives laid out in section B-1 is largely fulfilled. Recommendations, if

applicable, is shown in bold.

➢ Students display a good understanding of the topics learnt. It provides students with a

solid foundation in their next year’s learning as well as for further studies if they are to

pursuit in the field of Economics.

➢ Students display critical thinking in their discussion of real-life events and government

policies. Some of them shows great reasoning and analytical power in their sharing. Others

show genuine interest in looking at happening around them with the mind of an economist.

Students’ queries and answers are valuable learning materials. It can be collected and

edited. Private publication is also possible.

➢ All topics in the curriculum are well covered. Students obtained satisfactory results in their

school internal assessments. It is evident the students’ learning is effective. Our formal

internal assessment is strategically designed to resemble IGCSE Economics. More

detailed statistics can be retrieved from the data to assist students in the learning by

spotting strong and weak areas.

➢ Most students like collaborative learning and can learn more effectively through the

arrangement. Some students are less active in groups and can only have limited

contribution. Students with different abilities form a group. Usually the student with

better result takes the lead and the slow learn may have less participation. Role rotation

can be adopted to give equal opportunities to all students.

➢ Scaffolding is important in learning the subject. Students are constantly asked to link what

they have learnt before to extend their learning of new topics. The more times a topic to

brought up, the better the students can handle and master that topic. Students often have

impression of the pre-requisite knowledge needed. They need hints to help them recall.

If students are required to create a summary list of the topics they have learnt, with the

most important points outlined, they should do even better in acquiring new knowledge.

➢ Learners’ differences are tackled using coaching classes after school. From the coaching

classes, it is learnt that slower students do not have much problem in understanding the

topics. However, their difficulty lies in their inability to explain their thoughts properly in

writing. Having known this, the coaching sessions should focus more on helping student

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put together answers and gain important technique in answering questions.

➢ This generation is very adaptive to new learning tools. They can grasp the advantages of

these new methods very quickly. There are new opportunities to extend learning outside

classrooms in the coming year.

➢ The structural project is a new try of F5 Economics. Students have displayed improvement

throughout the process. However, they commented on their difficulties in working out the

tasks. There is too much information on the web. They do not have to ability to tell which

is more useful and should be brought into the tasks. More guidance is to be given to

students. Teachers have to sit down with students to review the information they got.

This will be a very valuable by tedious process. It is worth trying.

Evaluation is made on the effectiveness of learning and teaching of each topic.

Recommendations, if applicable” are made as to how improvement is possible in the coming

year.

Topics Evaluation Recommendations

Macroeconomic

Objectives

This topic lays a very important

foundation on all other topics to be

learnt during the year. Every topic

ultimately relates back to this one.

Students should be embedded with a

mindset to automatically relate other

topics to it.

An overall consolidation can

be designed by the end of

the year to make the

learning of the whole year’s

learning more

comprehensive.

Economic Growth

This is the first main topic learnt for

the year. Students are not familiar

with me nor my way to teaching.

More time should be given in this

first topic to get students into

motion.

Students comment that

there are much to learn in a

topic. To help students get

all the important points,

students can be given the

main sub-topics as an

overview of the topic.

Inflation

The topic should be one that is

closely related to their daily life.

However, I think it can be better

designed. Scaffolding is not done

properly. The whole topic is more of

a lecture, which is a pity as I can see

done in a more interesting way.

A simulation game can be

designed to let students

learn about inflation and its

causes through exploration.

Unemployment Students start to pick up the pace of Students love to learn in

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learning. Students display much

interest in the two main activities:

survey on unemployment and

determining impacts to different

aspects of the economy.

activities.

Real-time impact

identification can also be

done using WordCloud.

Balance of

payments on the

current account

Students display understanding of

the topic. They are interested in

learning about the trade statistics of

Macau.

-

Protection of the

Environment and

Redistribution of

income

The two topics are previously

regarded as tedious. They are

deliberately redesigned and

combined to make it less scattered.

Students perform will in producing

the mind map.

Other topics can also be

combined and redesigned.

Fiscal Policy

The topic is very huge. Students have

to learn the mechanism as well as

the many different types of taxes.

Students seem a little overwhelmed.

The topic can be further

subdivided to help student

capture all important

concepts.

Monetary Policy

The mechanism taught are simplified.

In reality, interest rate and money

supply is affect be much more

factors, rather than just determined

by the central bank.

Readings can be given to let

students know more. Even

though it might be difficult

to learn, students can have

a glimpse of its actual

workings bit but bit.

Supply-side policies

This is the first topic to be learnt

through online learning during the

school suspension period. Students

are quite nervous but performance is

satisfactory.

Student are asked to make

summary notes before the

zoom meeting. Students

commented that they have

spent a lot of time for the

preparation. It is found that

they put in too much

content and is not much of a

“summary”. Guidance can

be given to teach students

how summary notes should

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be prepared to make it

meaningful and effective.

Globalisation

The topic is not difficult. Students can

handle the topic well.

If the topic is learnt in

regular classroom setting,

students can be asked to

find information about

international trade. This

help students develop a

better understanding of

different countries around

the world.

Policy Analysis

Students’ work on evaluating Macau

Government’s policy during the

pandemic is satisfactory. They display

genuine understanding in the policies

designed.

Learning with recent events

makes learning Economics

more meaningful.

In the tight schedule of

regular lessons, it is very

difficult to give time to

evaluation of recent event

like this. It is only possible if

time is specially reserve in

advance.

Multinational

companies (MNCs)

and foreign direct

investment (FDI)

This is a quite straight forward topic.

Students do not have problem in

learning the topic.

Learning can also be done

from a different perspective.

Students can imagine

themselves as decision

makers in MNCs, and make

comparison of countries to

determine which to invest

in.

International trade

The example of absolute and

comparative advantage is a good

one. It can be used further to help

students understand how prices and

terms are determined in

international trade.

If this topic is taught in a

classroom setting, a

simulation of different

countries with different

products can be designed to

let student see the forces. It

can also be taught together

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with protectionism and

trading blocs to see the

different forces affecting

international trade.

Protectionism

The topic is difficult but students

seem to handle well. The only thing

they are not so confident in is to

determine which method of

protectionism is more effective with

less drawbacks, with context given.

Students to have

watch/read more news on

this topic to understand

actions of the real world.

Trading blocs

The functions and impact of trading

blocs is quite far from student’s daily

life. They presume that the work of

trading blocs is political and are not

very interested in it.

Students’ research on different

trading blocs is satisfactory. However,

they cannot relate much to the topic.

The learning about trading

blocs can take the form of

learning the major

agreements made.

The world Trade

Organisation and

world trade

pattern

The design of this topic is quite good

and foster interest toward the topic.

Students like the activity of imagining

themselves in the time when

international trade is not common.

Students perception on the main

exports is very far away from reality.

It lets students realize their

inadequacy in knowledge about the

other countries around the globe.

The case studies electronic posters

are also nicely done.

More activities can be

designed to improve global

knowledge.

Exchange rates and

their

determination

Conversion of currency is a useful

skill for students in their daily life.

Determination of exchange rate is

not difficult for students.

Students are interested in learning

Stories are an attractive

factor in learning. Students

are very interested real-

world events.

More of these can be used

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more about the US-China Trade War

and the Hong Kong Currency Battle.

to help student realise the

value of learning Economics.

Impact of changing

exchange rates

This topic is quite tedious as most

part of the chapter involves the

movement of exchange rate, interest

rate and current account. These

movement are not interesting.

A model can be built to help

students spot the

movement rather that

mentally determine the

movement one by one.

Movie – In Time

The movie has a very interesting

setting and consist of a good deal of

discussion points. Students are

enthusiastic in the follow up

discussion and give great ideas to the

class. However, they do not have

enough time for in-depth discussion.

For good movies, there are

usually amply movie reviews

and interpretation available

on the web. Students can be

asked to read some of these

reviews first to foster quality

discussion.

Consumer and

Producer Surplus

It is taught as a supplementary topic.

Not enough linkage is made to the

other topics learnt.

The topic can be taught

together with “Fiscal policy:

effects of indirect tax”.

Stronger linkage can be

established then.

Game Theory

Students love the setting the lesson.

Learning through games is always

effective. However, more time is

needed than usual to cover the same

topic.

We can continue to pick

special topics for learning

through games. Possible

topics to be learnt through

games are inflation and

protectionism.

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G. Appendix

Appendix 1 Requirement of the Structural Project

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Appendix 2 Supplementary Exercise on Current Account Balance (Lesson 23-24)

Appendix 3 Class Practice on Environment Protection (Lesson 25-26)

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Business Activities that Damage the Environment

A wide range of business activity has the potential to damage the environment. However, heavy industry such as _____________, _____________and mining can have harmful effects on the environment. Mining (@7%)

_____________of valuable minerals or other geological materials from the ground › Examples of minerals: copper, __________, __________ and etc.

Problems: › Release of _____________ (toxic and radioactive) →

_____________pollution › Destruction of _____________

_____________ → water pollution Power Generation (@7%)

Burning of fossil fuels (e.g. __________ and coal) to generate _____________ Problems:

› Greenhouse gas emission › Release of _____________ › Climatic and visual impacts from _____________ › Waste disposal (_____________, ash) › Noise

Nuclear power generation Problems:

› Leak of _____________________ › Waste disposal (stored _____________)

Chemical Processing (@5%)

The production of a majority of __________________________ Protect _____________ and increase yield Prevent and cure _____________ Problems:

› Release of __________________________ (HAPs) by refineries and chemical processing plants

› Volatile organic compounds (__________) → air pollutions Agriculture (@7%)

Cutting or burning down trees for farming space leads to _____________ Problems:

Less _____________ to absorb greenhouse gases Use of _____________ and fertilizer Problems:

› Released to ___________________ after heavy rainfall → killing aquatic life › Long-term exposure to _____________ can cause ill health (e.g. headaches,

hand tremors) › Some fertilisers can starve soil of organic matter → _____________ › Factory farming → generate 37% of global _____________ → global warming

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Construction (@2%) Production of ________________ in the process of construction work

› E.g. In UK, the construction industry produces 109 million tonnes of construction waste per year

_____________ › activities such as land clearing, operation of diesel engines, demolition,

burning and working with toxic materials Water pollution

Visual Pollution (@2%)

Something _____________ that does not look attractive › E.g. _________________________, advertising hoarding, light pollution,

litter, etc. Noise Pollution (@2%)

_____________ noise resulted from business activities Examples:

› _____________ › Music and loud conservations in pubs, bars, night clubs, etc. › Heavy industry machinery such as compressors, generators, exhaust fans, etc. › Constant sound of commercial traffics on a road and motorway

Air Pollution (@2%)

Emission of _____________________ WHO: In 2012, toxic gases caused around 6.5 million deaths per year Burning of fossil fuels: ___________________ Emission from factories and other business activities Agricultural activities: Ammonia

Water Pollution (@4%)

_____________of oceans, rivers, lakes, groundwater and other bodies of water by

harmful substances

Industrial waste Marine and ocean _____________ Sewage Problems:

› Loss of _____________and loss of habitat › _____________to clean water

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Appendix 4 Case Studies on Government Intervention (Lesson 31-34)

1. Taxation

The Bureau of International Recycling China estimates that China last year imported 7.3

million tonnes of plastic scrap from Europe, Japan and USA, and 27 million tonnes of

waste paper. For China the problem is simply one of pollution. Its submission to the WTO

reads: "We found that large amounts of dirty wastes or even hazardous wastes are mixed

in the solid waste that can be used as raw materials. This polluted China's environment

seriously."

Western recyclers admit that China has been a cheap and easy waste bin for their

industry. In theory the rubbish from your recycling rubbish bin is meant to be treated or

sorted before it goes in the container overseas, but the rules have too often been ignored

and rarely enforced.

It is suggested that a heavy landfill tax could be imposed in China to reduce waste.

**With reference to the data above and your knowledge of economics, assess the

effectiveness of taxation to reduce pollution in China.

2. Subsidies

Compared with gasoline-powered vehicles, electric vehicles (EVs) reduce air pollution

from harmful exhaust emissions, Battery Electric Vehicles can even achieve zero emission.

EV is an effective tool to improve roadside air quality and combat global warming through

reducing our collective carbon footprint. In Macau, EV owners can enjoy subsidy of up to

50% of tax due with capped at MOP 60,000. Besides, EV owners enjoy the exemption from

license tax in 2016.

CEM stated that it was supporting the Macau SAR government’s green commuting policy,

providing “technical evaluation of the EV charger installation.” EV owners can charge their

cars for free.

**With reference to the data above and your knowledge of economics, assess the

effectiveness of government subsides on electric cars to reduce pollution in Macau.

3. Regulation

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Legislation for “Environmental Noise Prevention and control” was issued on 22 February

2015. The purpose of this legislation is to provide statutory controls to restrict and reduce

the nuisance caused by environmental noise. Citizens, enterprises and the Government

should corporate responsibility and work hard together to build a suitable living

environment.

**With reference to the data above and your knowledge of economics, assess whether the

legislation of noise prevention and control in Macau has worked.

4. Pollution permit

China was working on new regulations of pollution permits to reverse the environmental

consequences of industrial expansion and clean up its heavily polluted air. Provinces

pledged to meet targets to cut air pollution by 5% to 25%. There are more than 20 trading

platforms that allow industrial firms to buy and sell permits for pollutants like Sulphur

dioxide. However, the effects may be in conflict with other policies such as economic

growth.

**With reference to the data above and your knowledge of Economics, evaluate the

effects of pollution permit in reducing the external costs of air pollution in China.

5. Progressive taxation

After the death of Hanjin Group Chairman Cho Yang-ho, his three children -- including his

son, Korean Air President Cho Won-tae -- inherited a tax bill of more than 170 billion won

($148 million). Business observers speculate that the Cho family might have to take out

loans using their stock as collateral, or sell off stock in some of the group’s affiliate

companies.

South Korea’s inheritance tax rate ranges from 10% to 50%, but rises to 65 percent when

the inheritance benefits a company’s largest controlling stockholder, as in the case of the

Hanjin Group chairman’s family.

**With reference to the data above and your knowledge of Economics, evaluate the

impact of inheritance tax on income inequality in South Korea.

6. Redistribution through benefit payments

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The Supplemental Nutrition Assistance Program (SNAP) provides food-purchasing

assistance for low income families living in the United States. It benefits roughly 40 million

Americans in 2018 and is the largest nutrition program. The program used paper-

denominated "stamps" or “coupons” (e.g. USD1, USD5, and USD10) bounding into a

booklet, where it can be used to exchange foods in supermarket. However, some critics

argue that SNAP disincentivises work and keeps able-bodied adults out of the workforce.

**With reference to the data above and your knowledge of Economics, assess the impact

of benefit payments to low-income families in US.

7. Investment in education and health care

The Chief Executive, Mr Chui Sai On, reviews the Government's work over the past decade

at a press conference in the Government Headquarters. He noted that the measures taken

by his government that he feels most proud of are the ones relating to education and the

policies that allow the youth of Macau to have access to tertiary education and to

continuous education.

“Equity of access to education is the base for an equalitarian society,” the CE said, noting

that his government’s policies on education had contributed to a firm foundation that will

allow future generations to perform better.

**With reference to the data above and your knowledge of economics, evaluate the likely

impact of investment in education to Macau’s economy.

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Appendix 5 Highlights for the Policy Address of Macau SAR for 2019 (Lesson 35-

36)

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Appendix 6 Exercise on Supply-Side Policies (Online Learning Weak 2)

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Appendix 7 Google Form Exercise on Globalisation (Online Learning Week 3)

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Appendix 8 Suggested Answers for Exercise on Globalisation

(Online Learning Week 5)

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Appendix 9 Fill in the Blank Exercise on MNCs and FDI, with Answer Key (Online

Learning Week 5)

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Appendix 10 Google Form Exercise on MNCs and FDI (Online Learning Week 6)

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Appendix 11 Fill in the Blank Exercise on International Trade, with Answer Key

(Online Learning Week 7)

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Appendix 12 Google Form Exercise on International Trade (Online Learning

Week 7)

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Appendix 13 Case Study on Protectionism (Online Learning Weak 8)

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Appendix 14 Google Form Exercise on Trading Blocs (Week 55-56)

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Appendix 15 Class Practice on Previous Google Form Exercises (Lesson 57-58)

Appendix 16 Google Form Exercise on Exchange Rates and its Determination

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(Week 73-74)

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Appendix 17 Instructions on Game of Eden (Lesson 83-84)

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Appendix 18 Instructions on Game Booths (Lesson 85-86)

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H. Reference

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CNN, 2020. Trump says immigration order will apply only to green cards and will last 60

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In Time. 2011. [Film] Directed by Andrew Niccol. United States: New Regency, Strike

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Jones, R., 2017. Government and the Economy. In: J. Toynbee, ed. Edexcel International GCSE

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Liar Game: The Final Stage. 2010. [Film] Directed by Hiroaki Matsuyama. Japan: Fuji

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[Online]

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content/uploads/sites/2/2018/11/en_2019Highlights.pdf

New Money Talks, 視知 TV, 2018. 【人生资本论】亚洲金融风暴真的只是因为索罗斯？

太天真了. [Online]

Available at: https://www.youtube.com/watch?v=dtIgIuOnbl0

New Money Talks, 視知 TV, 2018. 索罗斯能成功狙击英国和泰国，但为啥偏偏就败在了

香港？. [Online]

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Reuters, 2019. U.S. dependence on China's rare earth: Trade war vulnerability. [Online]

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