There are totally 20 multiple choice questions. The result will be sent to your email after finishing the quiz. Let’s start! 1. [2008/CE/II/4] An increase in the ________ would lead to a shift of the demand curve from D1 to D2 in the diagram. The following diagram shows the market of exhibition spaces in Hong Kong. A. rental of exhibition spaces in Hong Kong B. rental of exhibition spaces in Macau C. number of trade fairs held in Hong Kong D. exhibition spaces in Macau None 2. [2015/DSE/I/15] S is the supply curve for smartphones. Which of the following reasons can best explain the change of the equilibrium position in the smartphone market from A to B? A. The retailers offer more free gifts for buying smartphones. B. The size of a tablet computer with a phone function is reduced. C. There are more smartphone producers in the market. D. The major network service providers increase the service charge at the same time. None 3. [2016/DSE/I/13] Which of the following situations would lead to an increase in the demand for private housing? A. The price of private housing decreases. B. The supply of public housing increases. C. People expect the interest rate for mortgage loans to increase later. D. People expect the price of private housing to increase later. None 4. [2017/DSE/I/14] Which of the following situations would most likely lead to an increase in the demand for iPhone produced by Apple Inc.? A. A technological breakthrough in the battery industry reduces its production cost. B. People expect the next model of iPhone will have more innovative features. C. A mode of Samsung smartphone is banned by many airlines. D. Apple Inc. reduces the selling price of iPhone. None 5. [2013/DSE/I/12] A drop in the price for good X will lead to a drop in the price of good Y if (1) good X and good Y are substitutes.(2) good X and good Y are complements.(3) good X and good Y are in competitive supply.(4) good X and good Y are in joint supply. A. (1) and (3) only B. (1) and (4) only C. (2) and (3) only D. (2) and (4) only None 6. [2014/DSE/I/12] In which of the following pairs does the demand for the first good create a derived demand for the second one? A. Aviation service and pilots B. West Rail Line train service and Light Rail train service C. Blu-ray disc and Blu-ray disc players D. Hong Kong Disneyland and Ocean Park Hong Kong None 7. [2003/CE/II/14] Which of the following diagrams shows the result of a significant reduction in the cost of storing and transporting chilled chicken from the mainland of china to Hong Kong? A B C D None 8. [2006/CE/II/8] Which of the following would lead to a fall in price and an increase in quantity sold of imported Japanese television sets in Hong Kong? A. The transportation cost of goods from Japan to Hong Kong increases. B. An increasing number of lower-priced similar models of television sets is imported from Korea. C. The Japanese technology in producing television sets improves. D. The salaries tax rate in Hong Kong decreases. None 9. [2020/DSE/I/14] Suppose Good Y is an inferior good and the initial market equilibrium point is E. If there is a fall in the average income level of consumers, the new market equilibrium point will be Refer to the following supply-demand diagram for Good Y. A B C D None 10. [2010/CE/II/6] Suppose both the price and quantity transacted of imported rice decrease. This is likely to be caused by A. An increase in the transportation cost resulting from a higher fuel price. B. A change in taste from consuming rice to consuming noodles. C. A bad harvest of rice. D. An increase in the income of households given that rice is a normal good. None 11. [2017/DSE/I/17] Suppose Good Y is an inferior good. When people’s income rises and the production cost of Good Y increases, the equilibrium price of Good Y ______. A. Will increase B. Will decrease C. Will remains unchanged D. May increase or decrease None 12. [1992/CE/II/28] Suppose the demand for wheat is elastic. Which of the following will decrease if there is a poor harvest of wheat? (1) the price of wheat(2) the total expenditure on wheat(3) the demand for wheat(4) the quantity of wheat transacted A. (1) and (2) only B. (1) and (3) only C. (2) and (4) only D. (3) and (4) only None 13. [2001/CE/II/6] I love to take photo very much. Even though the price of film has increased by 30%, my spending on it will still be the same. Mary said. Mary’s demand for film is A. perfectly inelastic B. inelastic C. elastic D. unitarily elastic None 14. [2002/CE/II/8] After a good harvest, the price of choi-sum has changed by 50% and the quantity transacted has changed by 40%. Which of the following statements is/are correct? (1) The quantity demanded of choi-sum has increased.(2) The demand for choi-sum has increased.(3) The total revenue from selling choi-sum has increased. A. (1) only B. (1) and (2) only C. (2) and (3) only D. (1), (2) and (3) None 15. [2012/DSE/I/11] Michelle is a jewelry lover and she says, “I will spend all my monthly salary on jewelry no matter what the price is.” From this we can conclude that her demand for jewelry is A. Elastic B. Inelastic C. Unitarily elastic D. Perfectly inelastic None 16. [2015/DSE/I/11] The table below shows the relationship between the price and the total revenue on ice-cream. Unit price ($) 5 6 7 8 Total expenditure ($) 25 30 35 40 From the above table, we can conclude that the elasticity of demand for ice-cream is ____________ (without regard to its negative sign) A. between zero and one B. equal to zero C. larger than one D. equal to one None 17. [2017/DSE/I/15] Refer to the following conversation between Mandy and Shirley. Mandy: I like coffee very much! No matter how its price changes, I always buy the same amount of coffee every week!Shirley: I like coffee very much too! No matter how its price changes, I always spend the same amount of money on coffee every week! Based on their conversation, Mandy’s demand for coffee is _______ and Shirley’s demand for coffee is ______. A. perfectly inelastic … perfectly inelastic B. perfectly inelastic … unitarily elastic C. unitarily elastic … perfectly inelastic D. unitarily elastic … unitarily elastic None 18. [2016/DSE/I/15] A decrease in the cost of producing Good X results in a 5% and 10% change in its price and quantity transacted respectively. Which of the following best explains the above changes? A. Good X is a durable good. B. There are no close substitutes for Good X. C. Firms producing Good X have excess capacity in production. D. The factors of production for Good X are not easily available. None 19. [PP/DSE/I/9] Suppose there is political unrest in the countries exporting crude oil. As a result, there is a 30% increase in the price of gasoline and a 15% change in the quantity transacted of gasoline. We can conclude that A. the demand for gasoline is elastic. B. the demand for gasoline is inelastic. C. the supply of gasoline is elastic. D. the supply of gasoline is inelastic. None 20. [2019/DSE/I/11] Study the following news abstract. A Dengue fever (登革熱) scare has hit Hong Kong after 19 people in the past week were confirmed to have contracted the virus locally. Dengue fever is transmitted to humans by Aedes albopictus (白紋伊蚊), a type of mosquito commonly found in Hong Kong.Suppose the price and the quantity of mosquito repellents sold in Hong Kong changed by 5% and 120% respectively shortly after the release of the above news. This indicates that during that period and within the price range, there was an __________ the mosquito repellents in Hong Kong. A. elastic supply of B. inelastic supply of C. elastic demand for D. inelastic demand for None Please enter your name. Please enter your phone number. Please enter your email. Time’s up
