Hkcee 2010 Econ Paper 2 Q2 Jun 2026

To solve any variation of this classic problem, you must apply the strict economic definition of :

The correct answer is C. Land . This is a fundamental concept in economics: the four factors of production are land, labor, capital, and entrepreneurship.

[ Initial State ] Choose: Tutorial | Alternatives: Shift (Value: Low) or Sleep ↓ [ Shift Occurs ] Job wage increases -> Alternative Shift (Value: High) ↓ [ Conclusion ] Highest-valued alternative forgone rises -> Opportunity Cost Increases hkcee 2010 econ paper 2 q2

If it takes effort or resources to make, it has an opportunity cost.

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 To solve any variation of this classic problem,

Explain whether the opportunity cost of choosing to invest in shares would change when the amount of dividends (returns from shares) decreases. Examiner's Report & Key Concepts Part (i): Increasing Opportunity Cost Core Concept: Opportunity cost is the value of the highest-valued option forgone Required Explanation:

If price rises:

CS = area of triangle above price and below demand. [ CS_free = \frac12 \times (100 - 68) \times 16 = \frac12 \times 32 \times 16 = 256 ]