BASIC ECONOMICS June 2002
　　SECTION ONE Question 1 （Total： 20 marks） Answww.100ksw.comonopoly （d） oligopoly
　　1．5 The kinked demand curve in an oligopoly arises from assuming that
　　（a） firms www.100ksw.coms www.100ksw.come rather than consumption
　　1．8 Street lighting， lighthouses and defense are examples of
　　（a） public goods （b） merit goods （c） giffin goods （d） inferior goods
　　1．9 www.100ksw.comport quantities
　　（d） a fall in export prices and an increase in import prices
　　1．10 The “J—curve” showww.100ksw.comports rises immediately from the price effect， worsening the current account balance， but later quantities of imports and exports respond and the current account balance improves
　　（d） there is an initial drop in imports but this is later reversed