HKDSE Economics in Life – Microeconomics 1 (2nd Edition)
Chapter 1 Basic Economic Concepts
Online Test
Chapter 1 Basic Economic Concepts
1.
Which of the following is included in the study of microeconomics?
A.
impact of a rise in profits tax rate on aggregate investment in Hong Kong
B.
impact of a fall in demand for imported rice on importers’ revenue
C.
effects of deflation on Hong Kong economy
D.
impact of a rise in interest rate on savings deposits on Hong Kong economy
ANSWER: B
2.
Which of the following statements about scarcity is CORRECT?
A.
Scarcity only exists in an economy with more than one person.
B.
Scarcity can be eliminated by government intervention.
C.
All goods in our economy are scarce goods.
D.
Scarcity exists if the resources available cannot satisfy all people’s wants.
ANSWER: D
3.
Which of the following situations involve scarcity?
(1) People queue up for free “blessed rice”.
(2) Free cosmetic consultation service is provided by cosmetic shops.
(3) University places are allocated to students with good examination results.
A.
(1) and (2) only
B.
(1) and (3) only
C.
(2) and (3) only
D.
(1), (2) and (3)
ANSWER: D
4.
Which of the following statements is TRUE?
A.
Whenever there is competition, there is scarcity.
B.
Scarce resources are only allocated by price.
C.
Resources are scarce if their quantity is limited.
D.
The problem of scarcity exists for all types of goods.
ANSWER: A
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HKDSE Economics in Life – Microeconomics 1 (2nd Edition)
Chapter 1 Basic Economic Concepts
Online Test
5.
Which of the following statements about choice are TRUE?
(1) Only poor people have to make choices.
(2) Scarcity leads to choices.
(3) In making choices, some wants have to be given up.
A.
(1) and (2) only
B.
(1) and (3) only
C.
(2) and (3) only
D.
(1), (2) and (3)
ANSWER: C
6.
After graduated from the University of Hong Kong, Mary works as an assistant
manager in a trading firm. Which of the following will NOT lead to a rise in her
cost of working in the trading firm?
(1) She has a 20% salary rise.
(2) There is a fall in the number of job offers due to an economic recession.
(3) She is required to work overtime.
A.
(1) and (2) only
B.
(1) and (3) only
C.
(2) and (3) only
D.
(1), (2) and (3)
ANSWER: A
7.
Tim is choosing between being a teacher and a private tutor. The cost of being a
teacher will increase if
A.
the academic results of his students worsen.
B.
the salary of teachers increases.
C.
the salary of private tutors increases.
D.
the working conditions of teachers become poorer.
ANSWER: C
© Aristo Educational Press Ltd.
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HKDSE Economics in Life – Microeconomics 1 (2nd Edition)
Chapter 1 Basic Economic Concepts
Online Test
8.
When the new model of iPhone was introduced in Hong Kong, many people
queued up outside retail stores for hours to buy one. This revealed that
(1) the full cost of obtaining an iPhone was higher than the money price paid.
(2) there would be no scarcity for iPhones if their price doubled.
(3) there was competition for an iPhone.
A.
(1) and (2) only
B.
(1) and (3) only
C.
(2) and (3) only
D.
(1), (2) and (3)
ANSWER: B
9.
With $300 pocket money, Peter is able to buy one of the following items, which
are arranged according to his order of preference:
First choice: a pair of sports shoes
Second choice: a concert ticket
Third choice: a model aircraft
Which of the following statements is TRUE?
A.
Peter’s cost of using the pocket money is zero if the money is given by his
mother.
B.
The cost of buying a concert ticket is the same as the cost of buying a model
aircraft.
C.
Peter’s cost of buying a concert ticket will change if the model aircraft is
sold out.
D.
From the above information, we cannot determine which option Peter will
choose.
ANSWER: B
© Aristo Educational Press Ltd.
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HKDSE Economics in Life – Microeconomics 1 (2nd Edition)
Chapter 1 Basic Economic Concepts
Online Test
10. John invites Peter to watch a movie. The movie lasts for two hours and the ticket
price is $50. If Peter does not watch the movie, he can give a two-hour private
tutorial earning $50 per hour, or work in a coffee shop for two hours earning $40
per hour. What is Peter’s cost of watching the movie?
A.
$50
B.
$100
C.
$130
D.
$150
ANSWER: D
11. Benson wins $3,000 cash in a lucky draw. He has the following options which
are arranged according to his order of preference and each of them costs $3,000.
First choice: a high definition computer monitor
Second choice: a colour laser printer
Third choice: a digital camera
Which of the following will lead to a rise in Benson’s cost of choosing to buy a
high definition computer monitor?
A.
The colour laser printer is sold out.
B.
The digital camera is sold out.
C.
More after-sale services are provided by the laser printer manufacturer.
D.
The high definition computer monitor is accompanied with a free gift.
ANSWER: C
12. Which of the following are opportunity costs of studying in university?
(1) tuition fee
(2) knowledge acquired
(3) income forgone during the study
A.
(1) and (2) only
B.
(1) and (3) only
C.
(2) and (3) only
D.
(1), (2) and (3)
ANSWER: B
© Aristo Educational Press Ltd.
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HKDSE Economics in Life – Microeconomics 1 (2nd Edition)
Chapter 1 Basic Economic Concepts
Online Test
13. Which of the following statement(s) about interest is/are CORRECT?
(1) Interest exists even if there is no inflation.
(2) Interest exists in monetary economies only.
(3) Interest is the premium for deferring present consumption of goods and
resources.
A.
(1) only
B.
(1) and (3) only
C.
(2) and (3) only
D.
(1), (2) and (3)
ANSWER: B
14. Which of the following about free education is FALSE?
A.
The amount of education wanted is greater than the amount available.
B.
Cost is incurred in the provision of education.
C.
It is a free good because it is free of charge.
D.
It is beneficial to the future development of an economy.
ANSWER: C
15. Which of the following are economic goods?
(1) a golden watch won in a lucky draw
(2) rainwater collected in reservoirs
(3) free delivery services provided by a supermarket
A.
(1) and (2) only
B.
(1) and (3) only
C.
(2) and (3) only
D.
(1), (2) and (3)
ANSWER: D
© Aristo Educational Press Ltd.
5
HKDSE Economics in Life – Microeconomics 1 (2nd Edition)
Chapter 1 Basic Economic Concepts
Online Test
16. Which of the following about the Internet search engine services provided by
Yahoo! is/are CORRECT?
(1) The services are free goods because they are free of charge.
(2) More of these services are preferred.
(3) The provision of the services involves the use of scarce resources which
have alternative uses.
A.
(1) only
B.
(2) only
C.
(2) and (3) only
D.
(1), (2) and (3)
ANSWER: C
17. Which of the following about free goods is TRUE?
A.
All free-of-charge goods must be free goods.
B.
Its supply is great.
C.
Free goods must be free of charge.
D.
Nobody wants it.
ANSWER: C
18. Study the following circular flow model of economy X.
Money flow
X
Household
Firm
Real flow
Y
In the above circular flow model, flow X represents __________ while flow Y
represents __________.
A.
factor services … household’s consumption expenditure
B.
final goods and services … household’s consumption expenditure
C.
factor income … final goods and services
D.
final goods and services … factor income
ANSWER: D
© Aristo Educational Press Ltd.
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HKDSE Economics in Life – Microeconomics 1 (2nd Edition)
Chapter 1 Basic Economic Concepts
Online Test
19. Which of the following are positive statements?
(1) More workers will be employed after setting standard working hours.
(2) Setting standard working hours will reduce an economy’s competitiveness.
(3) The government should set standard working hours to improve workers’
quality of life.
A.
(1) and (2) only
B.
(1) and (3) only
C.
(2) and (3) only
D.
(1), (2) and (3)
ANSWER: A
20. Teddy said, “In order to protect the environment, people should use fewer plastic
bags.”
Raymond said, “People will use fewer plastic bags after the plastic bag tax is
imposed.”
Teddy’s statement is a ___________ statement and Raymond’s statement is a
__________ statement.
A.
positive … normative
B.
positive … positive
C.
normative … normative
D.
normative … positive
ANSWER: D
© Aristo Educational Press Ltd.
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