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CE Econ Past Paper (1992-2006)

CE Econ Past Paper (1992-2006) - HKCEE Paper I(1990-2006...

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HKCEE- Paper I (1990-2006) Basic Economic Concepts 9001. (a) (i) Mrs. Wong is a lawyer and is also good at doing housework, but she employs a Filipino maid to do her housework. In terms of opportunity cost, explain why Mrs. Wong employs a Filipino maid instead of being a full-time housewife. (5 marks) 9004. (c) The USA imposes quotas on garments imported from Hong Kong. The Hong Kong government allocates the quotas free of charge to some firms. These quotas are transferable at market prices. (i) Suppose Mr. Lee’s company obtains quotas from the government. Explain whether the opportunity cost to the company of using these quotas for exports is zero. (4 marks) 9005. (c) The government has announced a $127 billion project for building a new airport at Chek Lap Kok and improving the harbour facilities (i) An economist argues that the cost of this project to society is higher than $127 billion. Give TWO reasons to support his argument. (4 marks) 9102. (c) (iii) Define ‘free good’. Give an example of oxygen when it is regarded as a free good and another example when it is not. (6 marks) 9202. (a) (i) Define ‘opportunity cost.’ (2 marks) 9305. (a) Mr. Chan owns a flat in Mong kok. The following is his order of preference of ways to use his flat: First choice: live in his flat Second choice: rent it to a tenant Third choice: leave it vacant In terms of opportunity cost, explain whether the costs of the second and third choices are the same for Mr. Chan. (4 marks) 9401. The Kowloon-Canton Railway Corporation provides a free shuttle-bus service at some train stations. Explain whether this service is a ‘free good’ to society or not. (4 marks) 9510. (a) Study the following piece of news reported in the USA: A local singer has volunteered to perform two identical shows and the sales receipt of the concert tickets will be donated to the Rwanda refugees in Africa for their food and medical supply expenses. (i) (I) Define opportunity cost. (2 marks) (II) Explain with an example why the singer had an opportunity cost in performing the shows. (2 marks) (III) List TWO possible benefits to the singer arising from the performance. (4 marks) 9601. John has 2 options as to how to spend an afternoon: he can either go to a concert or go to a karaoke lounge with his friends. Explain whether John’s opportunity cost of going to the karaoke lounge would change if (a) the concert was very boring. (2 marks) (b) the service of the karaoke was very poor. (2 marks) 1
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9801. David can choose to study in one of three streams in Form 4. His order of preference is shown below. First preference : Arts Stream Second preference : Business Stream Third preference : Science Stream (a) Define opportunity cost. (2 marks) (b) Suppose the business stream is now not offered in David’s school. Explain how David’s opportunity cost of choosing the Arts stream would change. (3 marks) 9901. David wants to spend $8 to buy a pack of sandwiches or a bowl of noodles from an unlicensed hawker. Explain the effect on David’s opportunity cost of buying the sandwiches if a cockroach is found inside the noodle soup. (3 marks) 0001. Statement 1: Ice is a free good.
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