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This model answer offers strong phrases and core points for exam success, mirroring the concise style of HKCEE marking schemes.
Every firm, regardless of market structure, aims to maximize total profit (or minimize total losses). The universal condition for profit maximization is:
The is a classic multiple-choice question focused on the foundational concept of Scarcity and Economic Goods . In the final years of the HKCEE (1978–2011) , examiners frequently used these early questions to test whether students could distinguish between "economic goods" and "free goods" based on the presence of opportunity cost. Question Overview
HKCEE 2010 Economics Paper 2 Question 2 tests the concept of opportunity cost, with the correct answer, D, representing the highest-valued option foregone. The question typically requires distinguishing the next-best alternative from the sum of all forgone options or irrelevant costs. View the question in the HKCEE Economics Multiple Choice paper on HKCEE Economics Multiple Choice - Scribd hkcee 2010 econ paper 2 q2
This condition exists because human wants are unlimited while resources are finite. It applies to both rich and poor societies.
: Look at what the question alters. Does it increase the cost of Option A? Does it increase the payoff of Option B? Or does it adjust Option C? Formulate the Conclusion :
A famous chain of fashion stores in Hong Kong is considering expanding its operations by opening a new branch and implementing a division of labour among its staff to increase efficiency. Define the term 'productivity'. This model answer offers strong phrases and core
According to Herman Yeung's analysis , many candidates failed to recognize that "scarcity" doesn't mean a good is "rare"; it simply means there isn't enough to satisfy everyone's unlimited wants.
List the available options explicitly. Clearly segregate what is chosen from what is rejected. Step 2: Determine the Next Best Alternative
Firms earn only normal profit (zero economic profit) in the long run. Characteristics of Monopoly Single Seller: One firm dominates the entire market. Unique Product: There are no close substitutes available. Price Searcher: The firm has market power to set prices ( In the final years of the HKCEE (1978–2011)
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Common mistakes made by students included:
Based on the structure of HKCEE economics papers, the following is a representative text for a 2010-style Paper 2 Question 2. This question focuses on microeconomic concepts, specifically production, market structure, and efficiency Question 2 [15 Marks Total]
: A decrease in dividends from shares does not change the opportunity cost of choosing shares. Opportunity cost is defined as the value of the next best alternative forgone , which in this case is the investment in property. Since the return on property remains unchanged, the opportunity cost remains the same. Step-by-Step Review 1. Define Opportunity Cost
