F3 - SEM1 - Chapter Exercise - 1 Flashcards
Which of the following statements about scarcity is correct?
A. Scarcity implies that all goods and services are economic goods
B. Scarcity exists when we have wants
C. Scarcity means that no goods can satisfy human wants
D. Scarcity exists even if only one person is alive
1 Chapter Exercise
1 Chapter Exercise
Which of the following about scarcity is correct?
A. Only poor people face scarcity
B. Scarcity exists because human wants are limited
C. Scarcity exists because the supply of resources is fixed
D. People have to make choice because of scarcity
1 Chapter Exercise
1 Chapter Exercise
John lives in his own apartment which is worth $1 million. He can sell the apartment and put themoney in a bank at an interest rate of 5% per year. He can also rent out the apartment at $5000 month. What is the opportunity cost to John if he decides to live in the apartment?
A. 1 million
B. $50 000 a year
C. $5 000 a month
D. There is no opportunity cost because he lives in his own apartment.
1 Chapter Exercise
1 Chapter Exercise
A German tourist is choosing between a tour to Ocean Park and Hong Kong Disneyland. Which ofthe following will lead to an increase in his cost of choosing to visit Hong Kong Disneyland?
A. The price of hotel accommodation in Hong Kong decreases
B. Ocean Park introduces a new thrill ride
C. The services provided at Hong Kong Disneyland are better than expected
D. Hong Kong Disneyland builds a zoo within it
1 Chapter Exercise
1 Chapter Exercise
During a summer holiday, Ada planned to work in a fast food restaurant and gave up the choice to study English in England. Which of the following may increase her opportunity cost to work the fast food restaurant?
A. The wage of the fast food restaurant was reduced
B. She hurt her waist carelessly while at work in the fast food restaurant and had to stay in thehospital for treatment
C. The English learning institute was a scam
D. The organiser of the English course invited a lecturer whom Ada likes
1 Chapter Exercise
1 Chapter Exercise
In Hong Kong, free television programmes are ________ because ________
A. free good… they are free of charge
B. free good… some people do not want to watch the television programmes
C. economic good… they are used to satisfy wants
D. economic good… resources are used to produce the television programmes
1 Chapter Exercise
1 Chapter Exercise
Which of the following statements are correct?
- Free-of-charge goods must be free goods
- Free goods must be free-of-charge
- A good can be a free good or an economics good under different circumstances.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
1 Chapter Exercise
1 Chapter Exercise
What is scarcity?
1 Chapter Exercise
1 Chapter Exercise
What is opportunity cost?
1 Chapter Exercise
1 Chapter Exercise
Mr Wong is a doctor. He inherits shop premises from his grandparents. He can use the premises to open a clinic, or lease it out for $25 000 per month.
a. What is opportunity Cost?
b. What is Mr. Wong’s opportunity cost of using the premises to open a clinic?
c. What is his opportunity cost of using the premises to open a clinic if his mother does not allow him to lease out the premises?
1 Chapter Exercise
Steven is going to graduate from the university this year. He can choose among the following two jobs. His preference is shown as follows:
First priority: Being a teacher in Kowloon Secondary School
Second priority: Being a reporter for the Orange Daily
Explain how his opportunity cost of being a teacher will change when
(a) the pressure of teaching in Kowloon Secondary School increases
(b) the Orange daily decides to reduce the salaries of its reporters
1 Chapter Exercise
One morning when you were about to buy your breakfast in ABC Restaurant, a friend told you that he had vomited after eating breakfast there.
(a ) Will the opportunity cost for you to eat breakfast in ABC Restaurant change? Explain your answer
(b) Suppose a new restaurant opens nearby. It not only sells breakfast at the same price as ABC Restaurant but also offers services and food of great quality. Will the oportunity cost for you to have breakfast in ABC Restaurant change? Explain your answer.
1 Chapter Exercise
What is free good?
1 Chapter Exercise
Are the free-of-charge newspapers free goods? Explain your answer
1 Chapter Exercise
