1971-04-14 — Page 23

WEFER?

BERARY

育教僑華,頁 第張六第九十月三年亥辛屦复 WAH KO YAT PO

罗僑

1971 英文中學會考試題預習專欄

ƒ±‡ SUNLIGHT PRESS

經濟及公共事務科 (二十四)

Economic.

and Public Affairs

Lesson 24

11th Apr11. 1971.

Answers to Exercise 23

are the

What are the ractors governing the location of industry 7

What are the pros and cons of localization of industry?

Answer im Many industries are scax

ing all over a country while in nany other cases, particular regions concentrated in a particular form

of production. The question of why certain districts specialize in ... certain products and not in others can be attributed to the following determinants, viz, cost of distribuc-

cost of production, nearness to the market and geographical influen-

Heavy Industry, in which the cost of power forms a large proportion of its total costs, is particularly de- pendent on cheap power. Before new forms of

and ollawer suph as electricity.

£ntroduced, nearness tó coal was the main influence on their location. Costs of production would be greatly reduced as the cost of transporting coal was very heavy.

Lajimilarly, proximity to raw mater

Lf the cost of distribution is: heavy, will exert equal, tufluence on the location of industry, A leading example of these is the iron and steel industry.". It pays to have the blast furnaces near the iron-mines as the amount of fron ore needed is extremely bulky, Saw-mills and pulp mills share the same argument in which nearness to the timber is an essent- ial

Judging irom an agemonlc aspect. or location, a tirof would be unable to compete against ite

costs were higher.

it is situated in L

when

where

firms

will be attracted to the area where

oats of production are lower «

Products such as pread and ace which must be sold fairly quickly have to take another factor *** nearness to the market --- into con- sideration. The manufacture of prom ducts such as bricks or furniture, which are so bulky and heavy that they tend to be located near the various towns that are their chief markets.

Moreover, we should not maas an- other factor which plays an influential part in the location of industries ang kan geographical influences. Indeed, the location of industries such as mining, lumbering, fishing, fur-hunting and ocean shipping has been determined entirely by zeographical factors,

The principal advantages of region- al specialisation may be summarized as follows im.

"1. A constany supply of skilled Tabour is available which in turn tenas to attract to the area new firms wishing to enter the industry.

2. Subsidiary industries are close at hand which thus enable immediate replacements or repairs of machinery required by the main industry.

3. Transport system may be improved To serve the needs of a localized industry.

4. Banks can easily be informed of the conditions of manufacturing and thus the financing of importation and manufacture tends to be easier.

5. Highly organised markets for the industry may be established.

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6. A greater degree of division of labour is possible: as firms are close together. Goods can easily be passed from one firm to another. with the completion of each stage of

production.

Although the above-mentioned advantages are obtainable from local. isation of industry, there is a very serious drawback to the concentration of an industry in an area, Mass unemployment may occur as a result of

depression of the industry. A change

י'

in demand may cause a fall in the

demand for that commodity, and conse-

quently the subsidiary industries.

The whole area will be greatly affected. But worst of all, perhaps, is the Fossibility or ending in the form of A general trade depression all over the country.

In view or this drawback that exists, a government, instead of en- couraging localization of industry, should aim at diversifying the indus- tries in a region.

What are the factors of production ? Explain briefly the importance played by the roles of them

Answer: D Agents that combine to produce

economic products are called factors of production. With them we include two categories: one is human and the other non-human. The human factors. are labourers and entrepreneurs, The non-human factors are land and capital.

The human factors all contribute and exert human energies in different forms in the production of wealth (or alternatively called income). While labourers exert physical force, entrepreneurs supply mental exertion and bear uncertainty and risks.

Theoretically speaking, these human factors all possess their di tinctive features -

1. Labour is defined as the ̈phy- sical effort of human beings for the

attainment of producing goods and services. The quality and quantity

of labour in an economic society depend largely on

a) the size and age distribution

of the population,

b) working age,

working capacity,

mobility of labour

wage rates and

r) education and training.

WILLE LADour restricts to these. who engage in manual toil, organisation (entrepreneur) refers to the mental effort of human beings. Brains are important as muscle to organize the productive forces and direct their employment along chosen lines. The entrepreneur is the person responsible for management control of the under taking. He decides the best combination of the other factors in production as these factors cannot be combined in any and every proportion.

If, to explain in terms of only two factors, 5 labourers can best bell combined with one machine, production. will suffer if 4 or 6 labourers were supplied one machine to work with. Another distinctive feature of the entrepreneur is the responsibility. of production policy decisions. He decides what kinds of goods, to be produced and the amount of the prod- uction supply to the market, Hë possesses the character of one who Basumes the risks and uncertainty business.

But in practice, we hardly can find a labourer in isolation, nor an entrepreneur. A man may combine all these factors in himself in varying

proportions.

we now are going to have a gener- discussion on the non-human factors

Land and capital.

1. Land is commonly regarded as a separate factor of production, being different from other agents, for example capital, in that no inc- rease in the price paid for it will result from an increased supply. Compared with goods that are freely reproducible, land has greater durab- ility and is subjected to slower dem preciation. It is relatively immobile, and is less homogeneous. Land, in its economic role in production, yielde natural resources. In its function asa consumer good, it supplies space used for such purposes as residential or factory sites

三期星日四十月四年一七九一曆公年十六國民華中

2. Capital is under the division

of physical capital and financial

In the field of economics, capital. physical capital refers to the naturai resources and man-made goods which are used in the production of other goods and of services. Financial capital refers to the sums of money which are available to run the society's

The line in separating industries,

land and capital is rather arbitrary as when land is worked upon, it becomes capital.

Wealth or income can thus be raved with the combination and operation of men and matter. this phenomenon,

various

Sonra to be employed.

of production are

Their proportions of combination among these agents depend greatly on techno- logy and the relative cost of employing the factors.

Exercise 24.

On what principles does the sy of insurance work and why ta system important 7

Select the one that BEST answers the question or completes the statement

If a country can produce more rice than vegetables taking for granted: the same effort is used, then it is said to have-

an absolute advantage in rice an absolute disadvantage ân vegetables.

C. a comparative advantage in rice.

a comparative advantage in vegetables.

a specialization in rice.

In the number of hospital beds for general patients, Hong Kong ranks In the

1st position in A818.

1st position in South East Asia 2nd position in Asia Minor 2nd position in Asia,

e. 2nd position in the world..

The term of office or a Hong Kong Governor is.

three years o four years. five years,

six years.

seven years..

orrespondent of a newspaper is

regular contributor of news and ticles.

photographer.

sales representative.

staff of a local news agency constant-reader.

A tax reserve certificate can be employed to pay-

Salaries Tax and Property Tax. b. Interest Tax and Profits Tax. c. Customs Duty and Excise Tax. Entertainments Tax and Hotel Accommodation Tax, all kinds of tes

Rates are levied on the person who enjoys the property, who owns the property

who administers the property who sells the property. who lets the property.

To certity that the goods are made in Hong Kong and not of raw-materials from mainland China, the U.S. Govern- ment requires

a Standard Certificate of Urıgın.

a Comprehensive Certificate of Origin.

a Commonwealth Preference Certific ate of Origin,wi

General Certificate or Urigin. Current Certificate of Origin.

The authorized number of jurors an

Hong Kong criminal case 29

ven.

ve.

nine twelve.

To certify that the goods have been sent on board the ship, the shipping company. will issue to the manufactur et

a letter of credit. bill of exchange. safety draft.

title deed.

a bill of lading.

A document to specify somebody to claim for a sum of money after fel- fillment of his obligation is called a. a bank draft,

b. a letter of credit.

di

a mail transfer ä

a reconciliation statement

a credit note.