Unit 1 Exercises
MCQ1
Which of the following best describes production?
A. It is an activity through which inputs are turned into outputs.
B. Some production does not require inputs.
C. Production must generate money income.
D. All of the above
MCQ2
Which of the following does NOT belong to primary production?
A. Lumbering
B. Gold mining
C. Electricity generation
D. Uranium (鈾) mining
MCQ3
_________ are NOT secondary producers because _________.
A. Security guards in a factory ... they do not participate in production
B. Sewing workers in a garment factory ... they provide sewing services to the factory
C. Sales representatives of a printing factory ... they provide services
D. Decorators … they do not construct buildings
MCQ4
Which of the following does NOT belong to tertiary production?
A. Investigators carrying out anti-spy work
B. Merchants selling CDs
C. Reporters conducting interviews
D. Cooks preparing food
MCQ5
Read the following passage carefully.
‘The business idea behind IKEA is to offer a wide range of home furnishings with
good design and function at (low) prices…Our designers work with
manufacturers to find smart ways to make furniture using existing production
processes. Then our buyers look all over the world for good suppliers with the
most suitable raw materials…’
Source: http://www.ikea.com.hk
According to the above passage, in which type(s) of production is IKEA involved?
(1) Primary production
(2) Secondary production
(3) Tertiary production
A. (3) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
MCQ6
Study carefully the information about an economy in the table below:
Types of
Total value of production ($)
production
2050
2100
Primary
200,000
300,000
Secondary
300,000
600,000
1,000,000
100,000,000
Tertiary
According to the table above, which of the following is correct?
A. The growth rates of value of production for primary, secondary and tertiary production are
identical.
B. The proportion of value of primary production to the total value of production was more or
less the same in 2050 and 2100.
C. Compared with 2050, the proportion of value of secondary production to the total value of
production doubled in 2100.
D. The proportion of value of tertiary production to the total value of production increased in
2100.
MCQ7
Study the following table and answer the following question.
Contribution to total value of production
Year
1980
1990
2000
2010
Primary production
1.0%
2.0%
0.1%
0.1%
Secondary production
30.8%
24.3%
13.2%
7.0%
From the table, we can conclude that
A. Secondary production produces less.
B. Fewer people are engaged in primary production.
C. The contribution of tertiary production to the total value of production has increased.
D. None of the above
MCQ8
The following table shows the city Winterfall’s employment distribution in different years.
Year
1814
1824
1834
Primary production
50%
45%
38%
Secondary production
40%
45%
50%
Tertiary production
10%
10%
12%
From the table, we can conclude that from 1814 to 1834,
A. the overall unemployment rate remained unchanged.
B. the total value of tertiary production increased.
C. the number of people engaged in tertiary production decreased.
D. the relative importance of primary production in terms of employment decreased.
SQ1
Identify the type of production in which each of the following people is engaged. Explain your
answers.
(a) Paparazzi (「狗仔隊」)
(2 marks)
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(b) Coal mine supervisors
(2 marks)
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(c) Dim sum makers
(2 marks)
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MCQ1
Compared to a planned economy, a market economy
A. is more modernised (現代化).
B. has more resources controlled by private enterprises.
C. has less even income distribution.
D. has fewer government officials.
MCQ2
When a planned economy is transformed into a market economy,
A. the government will intervene less in production.
B. people can consume more goods.
C. more resources will be wasted.
D. there will be social unrest.
MCQ3
Star City is famous for its high-quality medical services. However, the medical services are
mainly in private hospitals. To meet the needs of the poor, public hospitals also provide cheap
medical services. The above example shows that Star City is most likely a
A. traditional economy.
B. planned economy.
C. market economy.
D. mixed economy.
MCQ4
Which of the following situations is most likely to be found in a command economy?
A. The government provides subsidies to some industries.
B. People can inherit (承繼) the properties of their ancestors.
C. Students are assigned by the labour department to work in different positions after
graduation.
D. Prices of agricultural products have been very stable in recent years.
MCQ5
Kevin has bought some oranges from a supermarket. As far as private property rights to the
oranges are concerned, which of the following rights would Kevin have after the purchase of the
oranges?
(1) To throw the oranges at someone whom Kevin dislikes
(2) To give the oranges to his friends for free
(3) To prevent others from eating the oranges
(4) To exchange the oranges for some apples
A. (1), (2) and (3) only
B. (1), (2) and (4) only
C. (1), (3) and (4) only
D. (2), (3) and (4) only
SQ1
In what ways does the distribution of goods and services in market economy differ from that in
planned economy?
(2 marks)
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SQ2
The Hong Kong government plans to introduce the “Hong Kong Property for Hong Kong
Residents” policy. The flats built under the policy can only be sold to Hong Kong permanent
residents within 30 years.
What are private property rights? Explain why the private property rights over the flats may be
weakened under this policy.
(4 marks)
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SQ3
Explain TWO examples of private property rights that you do NOT have over a book borrowed
from a school library.
(4 marks)
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