Hkcee 2010 Econ Paper 2 Q2

Advanced application, including changes in monetary vs. non-monetary costs. Found in Paper 2 Section A. Located in Paper 2 Section A (Short Questions).

The question typically asks about the nature of in a decision-making scenario. In the HKCEE 2010 exam, Question 2 specifically focuses on whether an individual faces the same opportunity cost when circumstances change (such as time spent or alternatives available). Why Option D is Correct ✅

A common trap in HKCEE questions is double-counting. GDP only includes the value of . hkcee 2010 econ paper 2 q2

The HKCEE Economics examination, though replaced by the HKDSE, remains a goldmine of rigorous microeconomic problems. Among the most instructive is . This question is a classic case study of government market intervention —specifically a price floor (minimum price) in a hypothetical agricultural market. It tests students on demand and supply analysis, elasticity, consumer surplus, producer surplus, and deadweight loss.

Try HKCEE 2009 Paper 2 Q3 (minimum wage) and HKCEE 2011 Paper 2 Q1 (subsidy) to complete your intervention arsenal. Advanced application, including changes in monetary vs

DWL = loss in total surplus = (original total surplus 640) – (new CS+PS = 100+450=550) = 90.

In 2010, the Hong Kong Certificate of Education Examination (HKCEE) Economics Paper 2, Question 2, focused on the concept of . Specifically, it dealt with a scenario where a person has to decide how to allocate a limited resource—time—between two competing activities. Located in Paper 2 Section A (Short Questions)

Area under supply from 0 to 10: Supply P=20+3Q, integral = ( 20Q + 1.5Q^2 ) evaluated 0 to 10 = ( 200 + 150 = 350 ). Revenue = ( 80 \times 10 = 800 ). So PS_new = ( 800 - 350 = 450 ).

Discuss whether the price floor at $80 improves social welfare.

Reward for land (e.g., payment for the retail space in a shopping center).

(a) With the aid of a diagram, explain the effects of a price ceiling set at $4 on: (i) market quantity, (ii) consumer surplus, (iii) producer surplus, and (iv) total social surplus. Is there a deadweight loss?