Hong Kong Economics Olympiad 2024

Additional Sample Questions

1. The appropriate fiscal policy to boost an economy is:

A. Increasing money supply

B. Implement quantitative easing policy

C. Increasing government expenditure

D. All of the above

ANS: C

2. Ivy and Peter have been in a relationship for 5 years now. Ivy is thinking about
divorcing because she fall in love with Ivan, but she believes this is not preferable
because she has invested so much into the relationship with Peter. Her thinking is
an example of:

A. incomplete information

B. survivorship bias

C. the fallacy of composition

D. sunk cost fallacy

ANS: D
3. In Country A, there is a total of 40 million in local currency in circulation. As an
economic advisor for Country A, determine the velocity of money using the
following data:

$ (million)
Government spending 40
Investment 45
Consumption 25
Exports 20
Imports 10

A. 3

B. 3.5

C. 1/3

D. 2/7

ANS: A

END