5. Which of the following labor market institutions increase labor market rigidity? (1) Statutory minimum wage (2) Career placement services (3) Sizeable severance pays A. (1) & (2) only. B. (1) & (3) only. C. (2) & (3) only. D. (1). (2) & (3) 6. Under the Scheme of Control, China Light & Power A. will earn less than those companies without the control. B. lacks incentive to increase productivity. C. tends to be more willing to develop green energy technologies. D. tends to make less investment on infrastructure for electricity supply. 7. Human capital of Hong Kong will be increased when the government A. increases marginal tax rates on incomes. B. decreases the quota of imported foreign workers. C. provides more incentive for a work culture that encourages creativity. D. grants tax deduction on childbirth. 8. The impossible trinity is a concept in international economics which states that it is impossible to have all three of a fixed foreign exchange rate, free capital movement, and an independent at the same time. A. trade policy B. tax policy C. interest rate policy D. social welfare policy 9. When housing prices of an economy fall, (1) the net worth of banks' balance sheets decreases. (2) the borrowing ability of firms decreases. (3) the investment expenditure decreases. A. (1) & (2) only. B. (1) & (3) only. C. (2) & (3) only. D. (1), (2) & (3)