F.5 Economics Final Revision

Which of the following statements about a planned economy is correct?
(1) The quantity of public goods is greater than that of private goods.
(2) Most resources are allocated by government commands.
(3) There are still competitions in the economy.

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)

Sharon, a university graduate, is considering studying a master degree programme in the same university or working as a management trainee. Which of the following situations would lower her opportunity cost of studying the master degree programme?

• A famous lecturer is employed by the university to teach the master programme.

• The tuition fee of the master programme is increased.

• The economy is now in recession.

• There is an increasing demand for management trainees.

Which of the following statements is a normative statement / are normative statements?

(1) The Hong Kong government should play an active role to solve the problem of poverty.
(2) There was a 1.9% growth of Hong Kong’s real GDP in 2017.
(3) People should not invest in shares through borrowing low-interest loans.

• (1) only

• (2) only

• (1) and (3) only

• (2) and (3) only

Which of the following statements about the novels in the public library is correct?

• They are economic goods because they satisfy human wants.

• They are producer goods because they are man-made resources bought by the library used in production.

• They are consumer goods because more of them are preferred.

• They are public goods because the public library can be visited by the general public.

The labour supply in Hong Kong would decrease if

• more Hong Kong people migrated to Taiwan.

• fewer Hong Kong students studied in tertiary institutions.

• the Government lowered the requirements for the Quality Migrant Admission Scheme.

• the Government decreased the number of days of paternity leave to fathers.

Sony’s PS4 was responsible for $17.8 billion of sales value, or 51% share of the global console hardware market, compared with Microsoft’s Xbox One at $9.1 billion of sales value or a 26% market share. Nintendo’s 3DS platform (and its variants, such as 2DS) was a distant third on the list with $2.6 billion of sales value of 8% share of the market. The market structure of the above global console hardware market is _____ because _____

• monopoly …... the PS4 was responsible for over a half of the market

• oligopoly …... there are a few dominating companies in the market

• monopolistic competition …... the companies sell differentiated goods in the market

• perfect competition …... there are many sellers in the global market

If the government raises the effective minimum wage rate of domestic helpers from the Philippines and at the same time the wage of domestic helpers from Indonesia increases, the consumer surplus in the market of domestic helpers from the Philippines ______.

• will increase

• will decrease

• will remain unchanged

• may increase or decrease

Taking photos in high-end restaurants is considered as a behaviour creating disturbance to other customers. In some high-end restaurants, the owners charge an extra fee for customers taking photos in their restaurants.

It is an example of divergence between private and social __________ and the ___________ solution is being practiced to reduce the divergence.

• costs …… market

• costs …… government

• benefits …… market

• benefits …… government

The Gini coefficient of Hong Kong has been increasing in the recent 40 years. We can conclude that

• real income of Hong Kong people has been increasing.

• income gap has been widening.

• government policies failed to reduce income inequality.

• the problem of poverty has been worsening.

Which of the following are included in the calculation of the gross domestic product (GDP) of Hong Kong?

(1) the estimated market rental of an apartment occupied by the owner
(2) the financial assistance received by a poor family
(3) the sales bonus received by a salesperson working in a local shop selling second-hand goods

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)