He realized that because he couldn't do both at the same time, he had to make a . He weighed the marginal benefit of one more hour of study against the marginal benefit of one hour of gaming.
: The value of the next best alternative use of resources (like time or assets). Anatomy of HKCEE Paper 2 Q2
Understanding how options stack up is critical for scoring high marks. Avoid mixing up your definitions by referencing this quick breakdown: Definition HKCEE Application Example The highest-valued option forgone when a choice is made. The salary lost by choosing to study full-time. Monetary Cost The actual cash outlay required to execute an option. Out-of-pocket tuition fees paid to a school. Sunk Cost
Because it is scarce, people must make choices, which leads to the existence of Opportunity Cost . Common Question Structure
: When an option you didn't choose becomes worse, your opportunity cost decreases. If the option you did choose becomes worse, your opportunity cost stays exactly the same, because the value of your next-best alternative didn't alter. Step-by-Step Revision Strategy hkcee 2010 econ paper 2 q2
A subtle follow-up sometimes implied in Q2(c) is:
While the specific text of the 2010 question is often guarded by copyright, it traditionally falls under the syllabus topic of Scarcity and Choice Opportunity Cost
Happy studying!
The answer to the HKCEE 2010 Economics Paper 2 (Multiple Choice) Question 2 Question Text Which of the following would lead to an increase in the opportunity cost of using a self-owned shop for running a business? A decrease in the market rent of the shop. An increase in the decoration expenses of the shop. An increase in the business profit. An increase in the market rent of the shop. Explanation Correct Option (D): Opportunity cost is the value of the highest-valued option forgone He realized that because he couldn't do both
┌──────────────────────────────┐ │ Question 2 Variations │ └──────────────┬───────────────┘ │ ┌───────────────────────┼───────────────────────┐ ▼ ▼ ▼ ┌──────────────────┐ ┌──────────────────┐ ┌──────────────────┐ │ Time vs. Money │ │ Expected Value │ │ Sunk Cost Trap │ │ Allocations │ │ Shifts │ │ (Past Outlays) │ └──────────────────┘ └──────────────────┘ └──────────────────┘ 1. Time Allocation vs. Money Expenditure
Changes to unchosen alternatives that are not the next-best option do not affect the overall opportunity cost. Step-by-Step Question Breakdown Structure
As per part (a), if MTR demand is inelastic, reducing its fare alone would lower MTR’s total revenue.
The activity must involve a market exchange with a defined monetary value. Anatomy of HKCEE Paper 2 Q2 Understanding how
Many students mistakenly add the values of all alternative options together. Examiners explicitly look for the phrase "highest-valued option" to award full marks.
The HKCEE 2010 Paper was noted for its high difficulty. Q2 was difficult because:
: You can find step-by-step walkthroughs for this specific year on the Herman Yeung YouTube Playlist , which covers HKCEE Economics past papers in depth.
He realized that because he couldn't do both at the same time, he had to make a . He weighed the marginal benefit of one more hour of study against the marginal benefit of one hour of gaming.
: The value of the next best alternative use of resources (like time or assets). Anatomy of HKCEE Paper 2 Q2
Understanding how options stack up is critical for scoring high marks. Avoid mixing up your definitions by referencing this quick breakdown: Definition HKCEE Application Example The highest-valued option forgone when a choice is made. The salary lost by choosing to study full-time. Monetary Cost The actual cash outlay required to execute an option. Out-of-pocket tuition fees paid to a school. Sunk Cost
Because it is scarce, people must make choices, which leads to the existence of Opportunity Cost . Common Question Structure
: When an option you didn't choose becomes worse, your opportunity cost decreases. If the option you did choose becomes worse, your opportunity cost stays exactly the same, because the value of your next-best alternative didn't alter. Step-by-Step Revision Strategy
A subtle follow-up sometimes implied in Q2(c) is:
While the specific text of the 2010 question is often guarded by copyright, it traditionally falls under the syllabus topic of Scarcity and Choice Opportunity Cost
Happy studying!
The answer to the HKCEE 2010 Economics Paper 2 (Multiple Choice) Question 2 Question Text Which of the following would lead to an increase in the opportunity cost of using a self-owned shop for running a business? A decrease in the market rent of the shop. An increase in the decoration expenses of the shop. An increase in the business profit. An increase in the market rent of the shop. Explanation Correct Option (D): Opportunity cost is the value of the highest-valued option forgone
┌──────────────────────────────┐ │ Question 2 Variations │ └──────────────┬───────────────┘ │ ┌───────────────────────┼───────────────────────┐ ▼ ▼ ▼ ┌──────────────────┐ ┌──────────────────┐ ┌──────────────────┐ │ Time vs. Money │ │ Expected Value │ │ Sunk Cost Trap │ │ Allocations │ │ Shifts │ │ (Past Outlays) │ └──────────────────┘ └──────────────────┘ └──────────────────┘ 1. Time Allocation vs. Money Expenditure
Changes to unchosen alternatives that are not the next-best option do not affect the overall opportunity cost. Step-by-Step Question Breakdown Structure
As per part (a), if MTR demand is inelastic, reducing its fare alone would lower MTR’s total revenue.
The activity must involve a market exchange with a defined monetary value.
Many students mistakenly add the values of all alternative options together. Examiners explicitly look for the phrase "highest-valued option" to award full marks.
The HKCEE 2010 Paper was noted for its high difficulty. Q2 was difficult because:
: You can find step-by-step walkthroughs for this specific year on the Herman Yeung YouTube Playlist , which covers HKCEE Economics past papers in depth.
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