Hkcee 2010 Econ Paper 2 Q2 [better] ★ Recommended & Newest

Since the HKCEE (Hong Kong Certificate of Education Examination) was replaced by the HKDSE, this specific exam (2010) is often considered a classic reference for its difficulty and the shift toward analytical multiple-choice questions.

Note: Changes to the chosen option affect your net utility or preference, but they do not alter the value of what you gave up. Avoid These Common Exam Pitfalls hkcee 2010 econ paper 2 q2

The correct answer is C. Land . This is a fundamental concept in economics: the four factors of production are land, labor, capital, and entrepreneurship. Since the HKCEE (Hong Kong Certificate of Education

A decrease in market rent would lower the value of the forgone option, decreasing the opportunity cost. Incorrect Option (B): Decoration expenses are typically considered sunk costs the ceiling creates non-price rationing (queues

Therefore, the correct combination is (1) and (3).

However, the ceiling creates non-price rationing (queues, favoritism), which may waste resources.

Step 3: Apply the Rule of the "Highest-Valued Option Forgone"