F.4 1st Exam Revision

Which of the following is INCORRECT?

• Because of scarcity, people must make choices.

• Scarcity would not exist if everyone had enough money to buy everything.

• When there is no choice, there is no cost.

• Scarcity exists in both market economies and planned economies.

Javier plans to watch a NBA game in which his favourite player, Steph Curry, will play.

His cost of watching this game

• will increase if he is 30 minutes late for the game.

• will increase if the game is extended by 30 minutes due to overtime.

• will decrease if his view is blocked by a tall spectator in front of him.

• will decrease if Steph Curry is hurt and cannot play the game.

Which of the following would increase Danny’s opportunity cost of watching a movie instead of doing a part-time job?

(1) An increase in ticket prices

(2) An increase in the salary of his part-time job

(3) The movie is better than expected.

• (1) only

• (1) and (2) only

• (2) and (3) only

• (1), (2) and (3)

Which of the following is a correct statement about ‘free good’?

• The price of free goods must be zero.

• Goods at zero price must be free goods.

• A free good is only available in limited quantities.
• Free good has no value in use.

A normative statement

• is always false.

• is not refutable with facts.

• does not include any subjective judgements.

• may be the same as a positive statement if many people agree with it.

Which of the following is related to the problem of 'how to produce'?

• A school decided to provide international syllabus.

• A school offers students with more types of elective subjects.

• A school employs external tutors to conduct some of the music lessons.

• A school allocates quotas of an exchange programme to students with good performance.

In a planned economy,

• most productive resources are owned by the government.

• allocation of goods is governed by market prices.

• private ownership of property is widespread.

• customs are followed in the allocation of resources.

The completion of Tuen Ma Line of the MTR would

• increase the equilibrium fares of minibus.

• increase the prices of private property near the stations of Tuen Ma Line.

• increase the time cost of travelling from Tuen Mun to Ma On Shan.

• All of the above.

Which diagram on the left shows the result of a decrease in the cost of transporting choi sum from China to Hong Kong?

• A

• B

• C

• D

Which of the following would change the equilibrium position in the market of calculators from point A to point B?

• An increase in the cost of producing calculators

• Less people sitting for the public examination of mathematics

• A decrease in the number of calculator producers

• A decrease in price of calculators