HKDSE-ECON 1-1 (Mock Test 2) 2010 Aristo Educationa !

ress "td#
INSTRUCTIONS
$ead care%u& t'e instructions on t'e Ans(er S'eet# Stick a )arcode a)e and insert t'e in%or*ation re+uired in
t'e s,aces ,ro-ided#
.'en tod to o,en t'is )ook/ &ou s'oud c'eck t'at a t'e +uestions are t'ere# "ook %or t'e (ords 0END OF
PAPER1 a%ter t'e ast +uestion#
A +uestions carr& e+ua *arks#
ANSWER ALL QUESTIONS# 2ou are ad-ised to use an H3 ,enci to *ark a t'e ans(ers on t'e Ans(er
S'eet so t'at (ron4 ans(ers can )e co*,ete& erased (it' a cean ru))er#
2ou s'oud *ark on& ONE ans(er %or eac' +uestion# 5% &ou *ark *ore t'an one ans(er/ &ou (i recei-e NO
MARKS %or t'at +uestion#
No *arks (i )e deducted %or (ron4 ans(ers#
Not to be taken away before the
end of the examination session
ECONOMICS INQUIRY FOR H!SE
HON" ON" !I#$OM% OF SECON!%RY E!UC%&ION E'%MIN%&ION
ECONOMICS PAPER 1
(Mock Test 2)
&ime a((owed) *+ min,tes
T'ere are 60 +uestions in t'is ,a,er# C'oose t'e BEST ans(er %or eac' +uestion#
1# T'e e7istence o% scarcit& i*,ies t'at
A# )ot' ric' and ,oor ,eo,e cannot satis%& a t'eir (ants#
3# resources in t'e (ord are i*ited#
C# ,eo,e 'a-e to use ,rice co*,etition to aocate resources#
D# ,eo,e are not in a )arter econo*&#
2# Miss "ee is a )ank *ana4er# $ecent& s'e took a t(o-(eek un,aid ea-e and s,ent 'er 'oida& in Austraia (it'
'er %a*i&# .'ic' o% t'e %oo(in4 s'oud )e incuded in 'er cost o% takin4 t'e tri,8
(1) t'e e7,ense %or a round-tri, air ticket %ro* Hon4 Kon4 to Austraia
(2) t'e (a4e %or4one durin4 t'e t(o (eeks
(9) Miss "ee1s *edica e7,enses durin4 'er tri,
A# (1) on&
3# (2) on&
C# (1) and (2) on&
D# (1)/ (2) and (9)
9# T'e Hon4 Kon4 4o-ern*ent 'as a,,ro-ed t'e construction o% t'e :uan4;'ou-S'en;'en-Hon4 Kon4 E7,ress $ai
"ink# .'ic' o% t'e %oo(in4 (oud NOT a%%ect t'e cost o% constructin4 t'e rai(a& to Hon4 Kon48
A# T'e a%%ected residents in t'e Ne( Territories de*and %ro* t'e 4o-ern*ent a 4reater a*ount o%
co*,ensation#
3# T'e construction da*a4es t'e natura en-iron*ent aon4 t'e rai(a&#
C# T'ere is an increase in t'e (a4es o% construction (orkers#
D# T'e %ee %or t'e rai(a& (i )e e7,ensi-e/ so %e( ,eo,e (i c'oose it#
6# T'e %act t'at ,eo,e ,a& interest to 4et 4oods earier i*,ies t'at
A# t'e costs o% earier a-aia)iit& o% 4oods and de%errin4 consu*,tion o% 4oods are t'e
sa*e#
3# ,eo,e (it' o(er de4rees o% ,ositi-e ti*e ,re%erence tend to )e )orro(ers#
C# so*e ,eo,e are (iin4 to de%er t'eir consu*,tion in return %or a co*,ensation#
D# a 4oods are econo*ic 4oods#
<# .'ic' o% t'e %oo(in4 co*es cosest to a %ree 4ood in econo*ics8
A# t'e *o-ies a-aia)e on t'e 5nternet %or %ree
3# sea (ater in t'e !aci%ic Ocean
C# street )ands1 sin4in4
D# air in t'e Hi*aa&as
HKDSE-ECON 1-2 (Mock Test 2) 2010 Aristo Educationa !ress "td#
=# T'e %oo(in4 are t'e 4oods t'at Si*on (ants to )u&>
Order o% ,re%erence 5te*s A*ount
1 a *o)ie ,'one ?9/000
2 a (atc' ?<00
9 a ,air o% s,ort s'oes ?600
6 a cacuator ?200
5% Si*on 'as ?<00 ,ocket *one& on&/ ('ic' o% t'e %oo(in4 is t'e o,,ortunit& cost o% )u&in4 a (atc'8
A# a *o)ie ,'one
3# a (atc'
C# a ,air o% s,ort s'oes
D# a ,air o% s,ort s'oes and a cacuator
@# Hon4 Kon4 is a *i7ed econo*&# Aor e7a*,e/ in Hon4 Kon4/ t'e rents %or ,u)ic 'ousin4 are deter*ined )&
BBBBBBBBBBB ('ie t'e c'ar4es %or internet ser-ices are deter*ined )& BBBBBBBBBBB#
A# t'e ,rice *ec'anis* C t'e 4o-ern*ent
3# t'e 4o-ern*ent C t'e ,rice *ec'anis*
C# socia custo*s C t'e ,rice *ec'anis*
D# t'e ,rice *ec'anis* C re4iona distri)ution
D# Eanet is t'e ,resident o% t'e Co*,uter Cu) at a sc'oo# E-er& da&/ s'e sta&s in t'e co*,uter roo* to %inis' 'er
'o*e(ork and 'e,s *aintain order in t'e roo*# .'ic' o% t'e %oo(in4 4oods is *ost ike& a ,ri-ate ,ro,ert&
%or 'er8
A# t'e 4a*e consoe e%t )& a student in t'e co*,uter roo*
3# t'e co*,uter s'e uses in t'e co*,uter roo*
C# t'e ,en s'e )u&s and uses to %inis' 'er 'o*e(ork
D# t'e note)ook s'e uses to record students1 na*es
F#
Air* A Air* 3
Nu*)er o% o(ners 2 6
Trans%er o%
o(ners'i,
%ree& trans%era)e needs t'e consent o%
ot'er o(ners
"e4a status e4a entit& not a e4a entit&
Accordin4 to t'e a)o-e in%or*ation/ ('ic' o% t'e %oo(in4 is CO$$ECT8
A# 3ot' Air* A and Air* 3 are not isted co*,anies#
3# Air* 3 can issue )onds to raise ca,ita )ut Air* A cannot#
C# Air* A 'as to ,a& a 'i4'er ,ro%its ta7 rate t'an Air* 3#
D# 3ot' %ir*s 'a-e to )e disso-ed i% one o% t'eir o(ners 4oes )ankru,t#
HKDSE-ECON 1-9 (Mock Test 2) 2010 Aristo Educationa !ress "td#
10# Co*,ared to a i*ited co*,an&/ a soe ,ro,rietors'i, enGo&s
(1) a si*,er set-u, ,rocedure#
(2) a 'i4'er de4ree o% autono*&#
(9) a (ider source o% ca,ita#
(6) a o(er ,ro%its ta7 rate
A# (1) and (2) on&
3# (1)/ (2) and (6) on&
C# (1)/ (9) and (6) on&
D# (2)/ (9) and (6) on&
11# .'ic' o% t'e %oo(in4 descri,tions a)out ,u)ic 4oods is 5NCO$$ECT8
A# !u)ic 4oods *a& not )e ,ro-ided to users %ree o% c'ar4e#
3# :oods t'at are not e+ua& a-aia)e to a users at t'e sa*e ti*e can aso )e ,u)ic 4oods#
C# T'e cost o% c'ar4in4 users %or ,u)ic 4oods *a& )e -er& 'i4'#
D# T'e *ore users ser-ed )& ,u)ic 4oods/ t'e 'i4'er t'e cost o% ser-in4 e7tra custo*ers#
12# Mar4aret/ Eaine and Oscar o(n a co%%ee s'o, to4et'er# 5n t'e co%%ee s'o,/ t'e& are res,onsi)e %or di%%erent duties
accordin4 to t'eir a)iities> Mar4aret ser-es t'e custo*ersH Eaine is res,onsi)e %or *akin4 t'e drinksH Oscar
cooks t'e dis'es# .'ic' o% t'e %oo(in4 descri,tions is CO$$ECT8
A# T'e co%%ee s'o, ado,ts a si*,e di-ision o% a)our#
3# Oscar en4a4es in ,ri*ar& ,roduction#
C# T'e co%%ee s'o, ,roduces consu*er 4oods and ,roducer 4oods#
D# T'eir ,roducti-it& is increased#
19# Trees in t'e tro,ica rain%orest in Maa&sia )eon4 to BBBBBBBBBB/ ('ie trees in Hon4 Kon4 !ark )eon4 to
BBBBBBBBBB#
A# and C ca,ita
3# ca,ita C and
C# ,roducer 4oods C %ree 4oods
D# ,u)ic 4oods C consu*er 4oods
16# .'ic' o% t'e %oo(in4 4o-ern*ent ,oicies CANNOT raise t'e *o)iit& o% a)our8
A# ,ro-idin4 %are su)sidies to t'e residents i-in4 in re*ote areas
3# inGectin4 ca,ita into t'e Continuin4 Education Aund to encoura4e ,eo,e to earn ne( tec'ni+ues
C# e7tendin4 t'e rai(a& net(ork
D# i*,osin4 t'e *ini*u* (a4e a(
HKDSE-ECON 1-6 (Mock Test 2) 2010 Aristo Educationa !ress "td#
1<# T'e in,ut-out,ut reations'i, o% a %ir* is as )eo(>
"a)our (units) Mac'ines (units) A-era4e !roduct o% Mac'ines (units)
1 1 =
1 2 10
1 9 19
1 6 1<
1 < 1=
Di*inis'in4 *ar4ina returns set in a%ter t'e BBBB unit o% *ac'ines is e*,o&ed#
A# 2nd
3# 9rd
C# 6t'
D# <t'
1=# "ar4e enter,rises can usua& o)tain oans %ro* )anks at o(er interest rates t'an s*a %ir*s# T'is is an e7a*,e
o%
A# interna econo*ies o% scae#
3# interna disecono*ies o% scae#
C# e7terna econo*ies o% scae#
D# e7terna disecono*ies o% scae#
1@# T'e %oo(in4 ta)e s'o(s t'e cost sc'edue o% a co*,etiti-e %ir*#
Out,ut (units) Tota cost (?)
1 20
2 90
9 <0
6 D0
< 120
5% its ,ro%it-*a7i*isin4 out,ut is 6 units/ ('at (i )e t'e *arket ,rice8
A# ?10
3# ?20
C# ?90
D# ?60
1D# T'e ar4est cos*etics retai c'ain in a cit& ac+uires t'e second ar4est cos*etics retai c'ain# .'ic' o% t'e
%oo(in4 is t'e MOST ,ossi)e o)Gecti-e %or t'e %or*er1s action8
A# di-ersi%&in4 risk
3# *a7i*isin4 *arket s'are
C# sur-i-a
D# %u%iin4 socia res,onsi)iities
1F# A construction co*,an& *er4es (it' a ce*ent %actor&# T'is is an e7a*,e o%
A# interna )ack(ard e7,ansion#
3# interna atera e7,ansion#
C# e7terna )ack(ard e7,ansion#
D# e7terna con4o*erate e7,ansion#
HKDSE-ECON 1-< (Mock Test 2) 2010 Aristo Educationa !ress "td#
20# 5n order to s,read risk/ a *a4a;ine ,u)is'er can consider
(1) ac+uirin4 a to& %actor&#
(2) *er4in4 (it' a te7t)ook ,u)is'er#
(9) ac+uirin4 anot'er *a4a;ine ,u)is'er#
A# (1) on&
3# (1) and (2) on&
C# (2) and (9) on&
D# (1)/ (2) and (9)
21# Co*,an& A is a s'oe *anu%acturer# T'ere is a(a&s unsod stock in its (are'ouse# .'ic' o% t'e %oo(in4
state*ents isIare CO$$ECT8
(1) T'e ,re-aiin4 ,rice o% s'oes is )eo( t'e *arket cearin4 e-e#
(2) T'ere is a do(n(ard ,ressure on t'e ,rice o% s'oes#
(9) T'e +uantit& o% s'oes transacted e+uas t'e +uantit& o% s'oes de*anded#
A# (2) on&
3# (1) and (2) on&
C# (1) and (9) on&
D# (2) and (9) on&
22# .'en an e%%ecti-e ,rice ceiin4 is i*,osed on 4ood J/
A# t'e ,re-aiin4 ,rice is 'i4'er t'an t'e *arket cearin4 ,rice#
3# an increase in t'e de*and %or 4ood J (i ead to an increase in +uantit& transacted#
C# t'ere is a sur,us o% 4ood J#
D# t'e +uantit& su,,ied is s*aer t'an t'e +uantit& de*anded#
29# T'e %oo(in4 dia4ra* s'o(s t'e (eddin4 ,annin4 ser-ice *arket in Countr& J# E0 is t'e ori4ina e+uii)riu*
,oint#
5n recent &ears/ t'e nu*)er o% ,eo,e 4ettin4 *arried 'as )een increasin4# T'e ,ro*isin4 ,ros,ects aso attract
ne( %ir*s into t'e *arket# T'e ne( e+uii)riu* ,oint (i )e at BBBBBBBBBB#
A# E1
3# E2
C# E9
D# E6#
HKDSE-ECON 1-= (Mock Test 2) 2010 Aristo Educationa !ress "td#
Kuantit& o% (eddin4 ,annin4 ser-ice
Lnit ,rice
0
D
1
D
0
D
2
S
0
S
2
E
1
E
0 E
9
E
2
S
1
E
6
26# 5n recent &ears/ t'e ,roduction cost o% c'e*ica %ertiisers increases drastica&# On t'e ot'er 'and/ t'e use o%
c'e*ica %ertiisers is not as ,o,uar as )e%ore )ecause o% t'eir ne4ati-e e%%ect on 'eat'# As a resut/ t'e ,rice o%
c'e*ica %ertiisers BBBBBBBBBBBBB and t'eir +uantit& transacted BBBBBBBBBBBBB#
A# increases C *a& increase/ decrease or re*ain unc'an4ed
3# decreases C *a& increase/ decrease or re*ain unc'an4ed
C# *a& increase/ decrease or re*ain unc'an4ed C increases
D# *a& increase/ decrease or re*ain unc'an4ed C decreases
2<# T'e dia4ra* )eo( s'o(s t'e *arket o% instant ca*era %i*#
.'ic' o% t'e %oo(in4 (i ead to a c'an4e in t'e de*and cur-e %ro* D0 to D18
A# T'e ,roduction cost o% instant ca*era %i*s increases#
3# T'e ,rice o% di4ita ca*eras increases#
C# T'e ,rice o% instant ca*eras increases#
D# T'e use o% instant ca*eras )eco*es *ore ,o,uar a4ain#
HKDSE-ECON 1-@ (Mock Test 2) 2010 Aristo Educationa !ress "td#
Kuantit&
Lnit ,rice
0
D
0
D
1
2=# T'ere is a ,oor 'ar-est o% su4ar cane in 5ndia# As a resut/ ,eo,e )e4in to su)stitute 4ucose () %or sucrose
()# .'ic' o% t'e %oo(in4 dia4ra*s (oud descri)e t'e a)o-e situation )est8
2@# Due to an increase in t'e cost o% ,roduction/ t'e ,rice o% note)ooks increases %ro* ?6 to ?= and t'e +uantit&
transacted decreases )& 99M# .'ic' o% t'e %oo(in4 state*ents isIare CO$$ECT8
(1) T'ere is an increase in t'e de*and %or note)ooks#
(2) T'e de*and %or note)ooks is ineastic#
(9) T'e tota re-enue decreases#
A# (2) on&
3# (9) on&
C# (1) and (9) on&
D# (2) and (9) on&
2D# 3ecause o% (ater ,oution/ t'e catc' o% tuna decreases# As a resut/ t'e ,rice and t'e +uantit& o% tuna transacted
c'an4e )& 60M and <<M/ res,ecti-e&# .e can concude t'at
A# t'e de*and %or tuna is ineastic#
3# t'e de*and %or tuna is eastic#
C# t'e su,,& o% tuna is ineastic#
D# t'e su,,& o% tuna is eastic#
HKDSE-ECON 1-D (Mock Test 2) 2010 Aristo Educationa !ress "td#
Lnit ,rice
Kuantit&
0
3#
Market %or sucrose
S
0
S
1
Lnit ,rice
Kuantit&
0
A#
Market %or sucrose
S
K
0
K
1
!
0
!
1
Lnit ,rice
Kuantit&
0
D#
Market %or 4ucose
D
0
D
1
Lnit ,rice
Kuantit&
0
C#
D
K
0
K
1
!
1
!
0
Market %or 4ucose
2F# Mr# C'an is a kitc'en ca)inet *anu%acturer# He can raise 'is tota re-enue )& o(erin4 t'e ,rice o% 'is kitc'en
ca)inets i% t'e de*and %or 'is kitc'en ca)inets is
A# eastic#
3# ineastic#
C# ,er%ect& eastic#
D# ,er%ect& ineastic#
90# .'en t'e ,rice o% co%%ee increases/ Sa*ue s,ends t'e sa*e a*ount on it ('ie Keit' )u&s t'e sa*e a*ount o%
co%%ee# Sa*ue1s de*and %or co%%ee is BBBBBBBBBB ('ie Keit'1s de*and %or co%%ee is BBBBBBBBBB#
A# ,er%ect& ineastic C unitar& eastic
3# unitar& eastic C ,er%ect& eastic
C# ,er%ect& eastic C ,er%ect& ineastic
D# unitar& eastic C ,er%ect& ineastic
91# Su,,ose t'e 4o-ern*ent i*,oses a ,er-unit saes ta7 on ,roducers rat'er t'an consu*ers# :i-en t'at t'e de*and
is *ore eastic t'an t'e su,,&/ ('ic' o% t'e %oo(in4 is CO$$ECT8
A# Consu*ers1 ta7 )urden (i )e s*aer t'an ,roducers1 ta7 )urden#
3# Consu*ers1 ta7 )urden (i )e ar4er t'an ,roducers1 ta7 )urden#
C# T'e ta7 )urden (i )e )orne )& consu*ers on&#
D# T'e ta7 )urden (i )e )orne )& ,roducers on&#
92# .'ic' o% t'e %oo(in4 a)out an e%%ecti-e +uota and a ,rice %oor is 5NCO$$ECT8
A# 3ot' o% t'e* *a& ead to a %a in tota re-enue#
3# 3ot' o% t'e* ead to *arket dise+uii)riu*#
C# 3ot' o% t'e* ead to 'i4'er *arket ,rices#
D# 3ot' o% t'e* ead to a %a in t'e +uantit& transacted#
99# A%ter ac+uirin4 Cai%ornia Karaoke 3o7/ Ne( 2ork Karaoke 3o7 )eco*es t'e on& karaoke ser-ices ,ro-ider in
Countr& J# T'e *arket structure o% karaoke ser-ices in Countr& J (i c'an4e %ro* BBBBBBBBBBBB to
BBBBBBBBBBBB#
A# *ono,oistic co*,etition ### oi4o,o&
3# oi4o,o& ### *ono,oistic co*,etition
C# oi4o,o& ### *ono,o&
D# *ono,o& ### oi4o,o&
96# .'ic' o% t'e %oo(in4 is NOT a %eature o% a *ono,oistica& co*,etiti-e *arket8
A# Air*s can enter or e7it t'e *arket easi&#
3# T'ere are se-era do*inant seers and ot'er seers 'a-e a s*a *arket s'are on&#
C# Neit'er seers nor )u&ers 'a-e co*,ete in%or*ation a)out t'e *arket#
D# T'ere are *an& )u&ers and seers in t'e *arket#
9<# E%%icienc& is ac'ie-ed ('en
A# tota cost is *ini*ised#
3# consu*er sur,us is *a7i*ised ('ie ,roducer sur,us is *ini*ised#
C# tota )ene%it is e+ua to tota cost#
D# t'e di%%erence )et(een tota )ene%it and tota cost is *a7i*ised#
HKDSE-ECON 1-F (Mock Test 2) 2010 Aristo Educationa !ress "td#
9=# Arank and Ada are coea4ues# Arank a(a&s c'ats (it' ot'ers oud& durin4 o%%ice 'ours/ and t'is is distur)in4 to
Ada# Assu*e Ada 'as t'e ri4't to (ork in a +uiet en-iron*ent# .'ic' o% t'e %oo(in4 state*ents is CO$$ECT8
A# Arank (i sto, c'attin4 (it' ot'ers durin4 o%%ice 'ours#
3# T'ere (i )e no di-er4ence )et(een ,ri-ate and socia costs#
C# T'ere (i )e no di-er4ence )et(een ,ri-ate and socia costs on& i% Arank sto,s c'attin4 (it' ot'ers
durin4 o%%ice 'ours#
D# T'ere (i )e no di-er4ence )et(een ,ri-ate and socia costs i% Arank is re+uired to ,a& a
co*,ensation to Ada accordin4 to t'e *ar4ina e7terna cost i*,osed )& 'is c'attin4#
9@# T'e construction o% t'e Sout' 5sand "ine (East) )& t'e MT$ Cor,oration (i s'orten t'e tra-ein4 ti*e )et(een
Ocean !ark/ .on4 C'uk Han4/ "ei Tun4 and Sout' Hori;ons to Ad*irat&# As a resut/ ,eo,e need to ,a& *ore
%or )u&in4 ,ri-ate 'ousin4 units in t'ese districts# .'ic' o% t'e %oo(in4 is CO$$ECT8
A# T'ere is a di-er4ence )et(een ,ri-ate and socia costs/ and t'e 4o-ern*ent s'oud ,ro-ide su)sidies
to ,eo,e ('o are 4oin4 to )u& ,ri-ate 'ousin4 units in t'ese districts to reduce t'e di-er4ence#
3# T'ere is a di-er4ence )et(een ,ri-ate and socia )ene%its/ and t'e 4o-ern*ent s'oud ,ro-ide
su)sidies to ,eo,e ('o 'a-e aread& )ou4't ,ri-ate 'ousin4 units in t'ese districts to reduce t'e
di-er4ence#
C# T'ere *a& )e no di-er4ence )et(een ,ri-ate and socia costs#
D# T'ere is no di-er4ence )et(een ,ri-ate and socia costs uness t'e 4o-ern*ent ,ro-ides su)sidies to
,eo,e ('o are 4oin4 to )u& ,ri-ate 'ousin4 units in t'ese districts#
9D# T'e dia4ra* )eo( s'o(s t'e "oren; cur-es o% Countr& J and Countr& 2#
.'ic' o% t'e %oo(in4 isIare CO$$ECT8
(1) T'e :ini coe%%icient o% Countr& 2 is 'i4'er t'an t'at o% Countr& J#
(2) T'e inco*e distri)ution o% Countr& 2 is *ore e-en t'an t'at o% Countr& J#
(9) T'e a-era4e inco*e o% 'ouse'ods in Countr& 2 is 'i4'er t'an t'at o% Countr& J#
A# (2) on&
3# (1) and (9) on&
C# (2) and (9) on&
D# (1)/ (2) and (9)
HKDSE-ECON 1-10 (Mock Test 2) 2010 Aristo Educationa !ress "td#
Cu*uati-e ,ercenta4e o% 'ouse'ods
Cu*uati-e
,ercenta4e o%
inco*e
Lorenz curve
100 D0 =0 60 20
D0
=0
60
20
0
100
"oren; cur-e o%
Countr& J
"oren; cur-e o%
Countr& 2
9F# T'e 'i4'er t'e :ini coe%%icient o% a countr&/
A# t'e o(er t'e inco*e o% t'e o(-inco*e 4rou, o% t'e countr&#
3# t'e s*aer t'e di%%erence )et(een t'e inco*es o% t'e o(-inco*e 4rou, and t'e 'i4'-inco*e 4rou,#
C# t'e o(er t'e de4ree o% inco*e ine+uait&#
D# None o% t'e a)o-e#
60# .'ic' o% t'e %oo(in4 4o-ern*ent ,oicies can reduce inco*e ine+uait&8
A# c'an4in4 t'e saaries ta7 s&ste* %ro* ,ro4ressi-e to ,ro,ortiona
3# reducin4 su)sidies %or ,ri*ar& and secondar& education
C# raisin4 t'e ,ro,ert& ta7 on u7ur& %ats
D# i*,osin4 a 4enera saes ta7
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HKDSE-ECON 1-11 (Mock Test 2) 2010 Aristo Educationa !ress "td#