1978-10-12 — Page 27

育救備審 真三第張七第 日一十月九年午戊夏

1979

中學會考試題預習專欄

明德出版社孔嚆璇盧榮俊提供資料

經濟及公共事務(-)

Economic & Public Affairs

- (1)

Introduction.

The Syllabus of Economic. and Public Affairs for the 1979 Hong Kong Certificate of Education Examination is: greatly different from that f for the year 1978. It con aists of many new topics both în economie and public affairs. The total number of topics of. the economic affairs has been reduced from 7 to 6. while public affairs comprise 7-

topics instead of 5.

The newly added topics in

economic affairs are: Banic Concepts of Economic Affairs; Industrial Promotion in Hong Kong; Primary, secondary, and tertiary production in Hong

Kong; and Trade Promotion::

The new.topies added to public

"affairs are: Basic Concepts

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of Public Affaires The Citizen and the Society; Population of Hong Kong; The Government and the People; and Drug Addiction, Medical and Health, and Crime and Crime Prevention。

Candidates in this exam- ination are expected to be fa Tumiliar with current events and issues, and be able to

illustrate general principles

by quoting.examples from Hung. Kung.

Basic Concepts of Economic Affairs

1. Economic and free gooda.

Goods are defined as those which yield satisfaction. to the consumers who use them. free | They can be classified as goods and economic goods.

Free goods are unlimite ed in supply, e.g. air, sun- shine, and they do not bear prices since consumers can use them

as many as they want. Economic goods are. limited in supply. They bear prices because they are.dentw manded by consumers but can not be supplied with unlimite ed quantities. E.g. car, pen, house, book, etc.

2, Wants

People have many wants, ranging from the primary. wants. arising frem the:

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biological requirements such as the needs to drink, eat, and wear clothes, to the secondary wants.created by culture such as the desires. to watch movie, listen to music, study at university, etc.

Since resources available for each individual are limit- ed, he or she cannot have all his/her wants satisfiedy but only some of them. Therefore, for each individual there is Wanta a hierarchy of wants, which are basic and important will be given the first pri- ority, and will be satisfied first.

3. Scarcity: aid Choice

People's wants are many y hut the resources for making goods and services are limit- ed in suppiyo Resources are scarce in the sense that: every one's wants cannot be satisfied fully even when all resources have been utilised |to produce goods and service

Therefore, it is natural that people's innumerable wante are constrained by limited supply of natural resources. In economic term, (acarcity, arises when everyone tries to maximise his satisfaction. subject to the existing level

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of resources..

日二十月十年八七九一圈公年七十六國民華中

As scarcity arises,

choice people must make a aince they cannot have all their wants fully satisfied. They have to sacrify Home of their wants in order to meet other needs, Therefore, choice is very important for every individual as long as scarcity of resources exist, 3. Upportunity Cost

Since people have to maken choice between two competitive ends, vith which he can be satisfied, the one he obtains for consumption represents a loss for him in

·using the other one. Thus' far the consumption of a certain commodity; the sacrifice of the other commodity is the

For example opportunity

confronted with two alternativesthat he may enjoy with a certain amount of money, i.e. a new flat or a motor car, the opportunity cost of having a new flat: will be the motor car. the one which he has to do without. 4. Wealth

a person in osta

Wealth can be defined cas the stock of goods, which

may be tangible or intangible used for satisfying people's wants or for further product-

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ion.

Wealth can be of an

individual, a society, a firm,

auntion, or tie world。

5. Consumption

Consumption is the pro- cess of utilising a certain commodity or services from which satisfaction is obtained by the person who uses it,

Consumption is necess➡ ary for each individual and: it is the primary motive for a person to work.

As consumption occurs, utility is derived and the need for production arises,

6. Market

Date Market can be defined as an area. where buying and selling of.a certain commodity take place.

With the help of modern transport and communication o amarket for a good needs not: be a place, since trade is no longer a face-to-face re- lation.

:The main function of a market is to facilitate the exchange of goods and services. It also provides market informm ation for both buyers and sell~ ers.

Markets can be classi-

fied as goods market, factor market, capital market, labour merket, etc.

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