Economics (NSS) / Miss W. S.Or / F.4 / Chapter 1 What is economics? Yan Chai Hospital Law Chan Chor Si College Economics Chapter 1 What is economics? Worksheet 1b (Homework) Name: Werenika Lead Class: 4A No: 30 Mark: 123 1. (1CO1Q009) Which of the following is correct? A. If there is scarcity, wants are unlimited. If there is no scarcity, we do not have to make choices. C. If there are limited resources, there are unlimited wants. D. If wants are unlimited, there is scarcity. 2. (1C01Q021) Mary is an accounting student who is very interested in singing. She will graduate soon and is choosing between two career paths: either being an accountant or being a singer. If she chooses to be an accountant, what will her opportunity cost be? A. The tuition fee she paid to develop her singing skills B. The university tuition fee to study accounting The income from being a singer D. The income from being an accountant 3. (1C01Q041) During the summer holiday, Susan can earn either $7,000 as a lifeguard (RX) or $6,000 as a waitress. If she does not work, she will travel to Japan and the expense of the trip will be $8,000. Her cost of travelling to Japan is A. $13,000. B. $8,000. C. $14,000. & $15,000.Economics (NSS) / Miss W. S.Or / F.4 / Chapter 1 What is economic 4. (HKCEE 2003.3) Medical doctors seldom change their occupation. Which of the following can explain this phenomenon ? They have spent much time and effort in getting their professional licence. They have incurred high costs in accumulating the skills and knowledge required for the profession. For medical doctors, changing occupation has a high cost. Being medical doctors has a high cost 5. (HKDSE Practice Paper Q2) Mr. Chan spent $5 000 on buying a new mobile phone which can be sold for $7 000 in the second-hand market. Mr. Chan's cost of keeping the mobile phone is _ $0 $2 000 $5 000 $7 000 6. (HKCEE 2000.2) Chan and Wong take a journey to City X separately. They can go there either by plane or by train. The plane takes 2 hours while the train takes 10 hours. The air ticket costs $1 000 while the train fare is $200. During the journey to City X, the foregone earning of Chan is $200 per hour and that of Wong is $80 per hour. For the journey to City X, Chan would take the and Wong would take the train ... train train ... plane plane ... train plane ... plane 7. (HKDSE 2014.1) A famous football team, Manchester United, visited Hong Kong for a friendly match. The day before the match, the team found the pitch in the Hong Kong Stadium had been damaged by prolonged rain and it poor pitch would considered cancelling the match. The opportunity cost for Manchester United to continue playing in such a because increase ...... there was a higher chance for the players to get injured increase ...... the team was likely to have poor performance remain unchanged ...... the expense on the visit to Hong Kong had already been paid remain unchanged ...... the players spent the same amount of time in Hong KongEconomics (NSS) / Miss W. S.Or / F.4 / Chapter 1 What is economics? Example David wants to spend $8 to buy a pack of sandwiches or a bowl of noodles from an unlicensed hawker ($HR/]\\EX). Explain the effect on David's opportunity cost of buying the sandwiches if a cockroach is found inside the noodle soup. (HKCEE: 1999.1) (3 marks) Suggested Answers: David's opportunity cost (the highest valued option forgone) of buying sandwiches is the bowl of noodles forgone. When a cockroach is found inside the noodle soup, the value of the bowl of noodles to David will decrease - and the opportunity cost of buying sandwiches will decreases. 8. David can choose to study in one of three streams in Form 4. His order of preference is shown below: (HKCEE : 1998.1) First preference : Arts stream (XTIME) Second preference : Business stream (PGFIJI) Third preference : Science stream (IF(F)I) Suppose the business stream is now not offered (THEZ) in David's school. Explain how David's opportunity cost of choosing the Arts stream would change. (3 marks) (please read WSla P.8-9 for reference.)