HKCEE ECONOMICS | 1.4 Three basic economic problems | P.
1. 1990/II/3
Basic economic problems in a market economy are mainly solved by
A. the government B. the price mechanism C. the entrepreneurs D. the consumers
2. 1992/II/5
In a market economy, the allocation of goods and services among consumers is basically determined by
A. the preference of the government B. the preference of sellers
C. the controlled prices D. the price mechanism
3. 1993/II/50
When a centrally-planned economy has changed and become a market economy,
A. its government will make most economic decisions
B. its income distribution will be more even
C. private ownership of resources should have already been established
D. more shortages of goods and services will occur
4. 1994/II/4
In the New Territories, an indigenous female resident cannot inherit her father’s property if her father dies
without leaving a will. This is an example of
resource allocation by
A. government rationing B. market mechanism C. violence D. social custom
5. 1994/II/5
Hong Kong is considered to be market economy because
(1) it has a high per capita real gross domestic product (GDP)
(2) price is used as a means to allocate resources in Hong Kong
(3) it has a system of low taxes
(4) most of its resources are privately owned
A. (1) and (2) only B. (1) and (3) only C. (2) and (4) only D. (3) and (4) only
6. 1995/II/20
The Housing Authority is considering whether it should raise the income limits of families for the application
of public housing. What basic economic problem(s) is/are involved in this consideration?
A. What to produce?
B. How to produce?
C. For whom to produce?
D. What and for whom to produce?
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HKCEE ECONOMICS | 1.4 Three basic economic problems | P.2
7. 1996/II/3
Hong Kong can be described as a capitalist economy because
A. all problems of resource allocation are solved by the prize mechanism.
B. income is unevenly distributed.
C. not all the public utilities are owned by the government.
D. most resources are privately-owned.
8. 1997/II/4
Which of the following statements about market economy is correct?
A. There is no non-price competition
B. Competition is perfect throughout the economy
C. The pattern of production reflects the preference of consumers
D. All resources are privately owned and controlled
9. 1998/II/3
As compared to a market economy, a planned economy
A. has a less even income distribution. B. must have a lower inflation rate.
C. must have a lower unemployment rate. D. has a smaller proportion of privately-owned resources.
10. 1999/II/3
In a market-oriented economy,
A. the living standard is higher than in a command economy.
B. the unemployment rate is lower than in a command economy.
C. resources are mostly allocated according to price signals.
D. all infrastructure is privately owned.
.
11. 2000/II/4
Which of the following markets in Hong Kong rely heavily on price mechanism to solve the three basic economic
problems?
(1) medical service (2) education
(3) bank loans (4) electrical appliances
A. (1) and (2) only B. (1) and (4) only C. (2) and (3) only D. (3) and (4) only
12. 2001/II/2
Which of the following statements about a market economy is correct?
A. All markets in the economy are perfectly competitive.
B. Most resources in the economy are owned and controlled by individuals and private firms.
C. Income is less evenly distributed in a market economy than in a command economy.
D. The unemployment rate is higher in a market economy than in a command economy.
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HKCEE ECONOMICS | 1.4 Three basic economic problems | P.3
13. 2002/II/5
Which of the following are major determinants of the allocation of goods and services in a market economy?
(1) the planning of government
(2) the costs of production
(3) the demand of consumers
(4) the controlled prices
A. (1) and (3) only B. (1) and (4) only C. (2) and (3) only D. (2) and (4) only
14. 2003/II/4
An economy is considered as a market economy when
A. the profit tax rate is low
B. prices are used to allocate resources
C. there is competition in all industries
D. there are no restrictions on the entry and exit of firms to all markets
15. 2004/II/4
Compared to a command economy, a market-oriented economy has
A. a less even income distribution. B. keener competition for goods and services.
C. more production guided by price signals. D. no problem of scarcity
16. 2005/II/8
Which of the following statements is a correct description of a market-oriented economy?
A. Most resources are privately owned
B. All economic problems are solved by the price mechanism
C. Income is less evenly distributed than in a command economy
D. There is no non-price competition
17. 2006/II/1
Since the opening of Hong Kong Disneyland, some people have suggested a reduction of the ticket price. This
suggestion is related to the ____________ question(s) in Economics.
A. ‘what to produce’ B. ‘how to produce’
C. ‘for whom to produce’ D. ‘what, how and for whom to produce’
18. 2006/II/4
In a market economy, which of the following are guided by price signals?
(1) resources allocation
(2) production decisions
(3) consumption decisions
A. (1) and (2) only B. (1) and (3) only C. (2) and (3) only D. (1), (2) and (3)
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HKCEE ECONOMICS | 1.4 Three basic economic problems | P.4
19. 2007/II/3
Compared to a planned economy, a market economy must
A. have a larger income gap between the rich and the poor
B. have higher inflationary pressure
C. have a higher unemployment rate
D. have a higher proportion of resources directed by the price mechanism
20. 2008/II/3
An economy is considered as market-oriented when
A. most of the markets are perfectly competitive
B. most of the resources are allocated by the price mechanism
C. most of the goods are economic goods
D. most of the public utilities are privately owned
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