Senior Secondary (HKDSE) · Economics

Policy concerns: Practice Questions

5 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on Policy concerns.

9 questions23 marksFree, no account

Question 1

1 mark

When governments implement policies aimed at significantly reducing income inequality, which of the following is a common concern regarding economic efficiency?

Question 2

1 mark

A government introduces a new policy that provides housing subsidies to low-income families, funded by a general consumption tax. This policy primarily aims to enhance income equity. What is a likely economic consequence regarding efficiency?

Question 3

1 mark

A government decides to fundamentally restructure its social policy, shifting the primary focus from equalizing income to equalizing opportunities. The policy package includes two major components:

I. Replacing a highly progressive income tax system (with high top marginal rates) with a proportional tax system, resulting in a net decrease in the tax burden on high-income earners.

II. Substantially increasing government spending on vocational training and tertiary education subsidies, targeted specifically at students from lower-income backgrounds.

Which of the following statements correctly assesses the likely long-run trade-offs and outcomes of this policy package regarding equity and economic efficiency?

Question 4

1 mark

A government implements a means-tested welfare program that guarantees a minimum income level but sharply reduces the cash benefits as a recipient earns income from employment. The primary goal of this policy is to achieve a substantial equalization of income distribution.

Which of the following is the most likely trade-off this policy introduces, specifically concerning economic efficiency and the goal of equalizing opportunities?

Question 5

1 mark

A government funds a new, high-quality vocational training program exclusively for students from low-income families. The primary objective of this policy is to promote greater equality of opportunity in the long run.

Which of the following is the most likely trade-off this policy introduces in the short run regarding income equity?

Question 6

3 marks

A government introduces a new policy to subsidize vocational training for unemployed individuals. Which ethical principle of equity does this policy primarily aim to address?

Write your answer out first, then check it against the worked solution.

Question 7

5 marks

Discuss how the pursuit of "equalizing income" through a highly progressive tax system might create a trade-off with economic efficiency.

Write your answer out first, then check it against the worked solution.

Question 8

5 marks

A government provides a lump-sum subsidy to all citizens regardless of their income level. Compare the impact of this policy on income distribution (equity) versus a means-tested subsidy, and explain the difference in terms of the administrative economy principle of taxation.

Write your answer out first, then check it against the worked solution.

Question 9

5 marks

In the context of government policies aimed at promoting fairness in a society, explain the fundamental difference between pursuing equalizing income and pursuing equalizing opportunities.

(a) Distinguish between the policy goals of "equalizing income" and "equalizing opportunities," providing an example for each type of policy goal.

(b) Discuss one potential reason why a government might choose to prioritize "equalizing opportunities" over "equalizing income" when designing its social policies.

Write your answer out first, then check it against the worked solution.

* The content provided by thinka is generated by AI and may not always be accurate or up-to-date. Please use it as a supplementary resource and verify with official materials.

You've seen the model answer. Now get yours marked.

This page can show you how a good answer looks. It cannot tell you what your answer was missing. thinka marks your written work against the real mark scheme in about 15 seconds.

Get My Answers Marked Back to the notes

Want more questions like these? Get a fresh set on this topic, marked as you go.

Practise More