Professional Documents
Culture Documents
5 Economics
Chp 12 Efficiency, Equity and the Role of
Government
(Past Papers)
Name:
___________________
Class:
__________(
Group X_____
Paper 1 MC Questions:
1.
3.
(2012 Q21)
Suppose the market equilibrium output level is greater than the efficient output
level. It implies
A.
B.
total social surplus will increase if output is reduced towards the efficient
output level.
at the equilibrium output level, marginal benefit is greater than marginal
cost.
C.
D.
6.
Which of the following will be the result of a reduction in quota on the good?
7.
(1)
(2)
(3)
A.
B.
C.
D.
(1) only
(1) and (2) only
(2) and (3) only
(1), (2) and (3) only
(2013 Q19)
A beekeeper keeps the bees for their honey. The bee-keeping benefits the farmers
in the orchard nearby because the bees help pollinate the fruits in the orchard.
Which of the following statements about this case is correct?
A.
B.
C.
There will be a divergence between private and social benefits and the
honey is over-produced.
The beekeeper should be subsidized by the government to improve
economic efficiency.
If the value of honey is higher than the value of fruits, there is no need for
the government to intervene to correct the externality.
D.
8.
9.
Koreans pop singers are becoming more popular in Hong Kong. To these singers,
which of the following are their private benefits?
(1)
(2)
(3)
(4)
A.
B.
C.
D.
(2014 Q18)
Which of the following are ways to lessen the problem of divergence between
private and social costs in Hong Kong?
(1)
(2)
(3)
(4)
A.
B.
C.
D.
(2014 Q19)
10. Which of the following policies can reduce the Gini coefficient based on postsocial transfer monthly household income in Hong Kong?
A.
B.
C.
D.
11. Which of the following are results of the government lowering an effective price
ceiling on a good?
(1)
(2)
(3)
A.
B.
C.
D.
(2014 Q21)
(2014 Q22)
13. Suppose the supply curves of cars and petrol are upward-sloping. If the
government imposes an effective quota on the production of cars,
A.
B.
C.
D.
(2014 Q23)
2.
Under the School Textbook Assistance Scheme (STAS), needy students are granted subsidies to
cover the costs of textbooks and miscellaneous school-related expenses. Explain how STAS can
enhance equity in Hong Kong society.
(4 marks) (PP Q11d)
3.
The STAS increases the income of the needy students families while
the rich families cannot enjoy this benefit.
The STAS will help equalize opportunities as it helps the needy
students further their studies.
Education can increase future income of the needy students so it may
help narrow the income gap over time.
Any other relevant point
(2@; max: 4)
According to the report of the United States in 2008, the Gini coefficient of Hong
Kong and Beijing were 0.53 and 0.22 respectively.
(a)
(b)
Was the income gap between the rich and the poor in Hong Kong wider or
narrower than that in Beijing?
(1 mark)
Explain how an increase in the standard tax rate of salaries tax will affect
the post-tax Gini coefficient of Hong Kong. (3 marks) (2012 Q4)
In 2011, the Financial Secretary announced the Scheme $6000 which provides to each Hong
Kong permanent resident who is 18 years old or above.
(b) Do you think that the government should introduce the Scheme $6000 to improve equity in
the Hong Kong society? Explain.
(4 marks) (2012 Q10b)
5.
the industry with a larger disparity of income (i.e. financing, insurance, real estate and
business services) and a decrease in the industry with a smaller disparity of income
(i.e. construction). Other things being equal, this changing pattern of employment
distribution across the two industries would contribute to the increase in the income
inequality in the entire economy. (2) (max: 3)
6.
The government has launched the Work Incentive Transport Subsidy Scheme
(b) Discuss the effects of the scheme on
(ii) income inequality
(3 marks) (2013 Q11)
Figure 1 shows the market supply and demand curves of Good X. Suppose the
government raises the price floor from Pa to Pb.
With the aid of Figure 1, explain whether the rise in the price floor could
enhance efficiency.
(6 marks) (2014 Q3)