They arise due to the need to make choices as there are scarce resources.
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15
Provide an example of a normative and a positive statement in Economics.
Positive: raising income taxes decreases consumption, normative: the government should raise income taxes to increase its budget.
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10
Using an example, explain the opportunity cost that a private company might face when it comes to its daily operations.
The opportunity cost of funding a new product may be to expand into a new geographical location, assuming it's the best choice forgone.
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15
Explain why the concept of scarcity is linked to the concept of sustainability.
Threats to sustainability arises due to scarce resources; if we used up scarce resources in the present day, future generations are unable to meet their needs.
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10
Using a concrete example, explain why consumers might not always act rationally.
Consumers' satisfaction affected by psychological biases (e.g. prices of wines)
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20
What are the three basic economic questions? Briefly elaborate.
What to produce, how to produce, for whom to produce.
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15
Explain the argument that the private sector is more efficient than the public sector in providing goods and services in an economy.
profit oriented = maximize profits & minimize costs + competition adds to more efficient allocation of resources
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baam
Lose 10 points!
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gold
Win 50 points!
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shark
Other team loses 10 points!
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banana
Go to last place!
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lifesaver
Give 20 points!
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rocket
Go to first place!
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rocket
Go to first place!
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banana
Go to last place!
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20
Due to COVID-19, the HK government issued consumption vouchers to the general public. Relate this decision back to THREE WiSE ChOICES concepts.
Intervention (e.g. intervene to stabilize economy), choice (helping the economy heres means giving up the choice to spend elsewhere), equity
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20
Using a PPC, illustrate a scenario in which there is a constant opportunity cost between two goods (use actual goods)
E.g. farming goods, same colored pens
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eraser
Reset score!
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seesaw
Swap points!
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gift
Win 20 points!
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baam
Lose 25 points!
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15
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15
Explain why economics is considered a "social science".
Scientific methodology to build knowledge (scientific) + deals with human behavior (social)
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15
Distinguish between Obama and Richard Burr’s views on the role of the government in managing the economy.
Obama = government spending to decrease unemployment, rejected the view that the government has no role; Burr says government spending money does not work!
