Question 2 examined market failure and government intervention. Students were given a short case about negative externalities from a factory producing pollution harming local residents. Tasks typically included:
| Mistake | Consequence | Correction | |--------|------------|-------------| | Using Qs (20) instead of Qd (10) to calculate CS | Overstates CS | In a price floor, actual trade = quantity demanded | | Forgetting that PS should use quantity sold (10), not quantity supplied (20) | Overstates PS | Unless government buys surplus, unsold stock yields no revenue | | Miscalculating intercepts | Wrong surplus areas | Always derive demand/supply intercepts from equations | | Stating that total surplus increases | Wrong conclusion | Any binding price floor reduces total surplus (DWL>0) | | Ignoring the possibility of non-binding floor | Misses part (b) marks | Always compare floor price to equilibrium price first |
To begin your study, it's essential to find the authentic examination paper. This official source provides the exact question wording and the definitive marking scheme for Question 2. Here's how to access it:
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
The Hong Kong Certificate of Education Examination (HKCEE) 2010 Economics Paper 2 contained structured questions testing core microeconomic principles. Question 2 focused on the market for a specific good (commonly rice or a necessity), examining how shifts in demand/supply, price controls, or taxes affect equilibrium price, quantity, and total expenditure. This paper reconstructs the likely question, provides step-by-step reasoning, and discusses common student errors.
Students often said “there will be a surplus” without checking that ( P_\textfloor = P_e ). Others incorrectly calculated quantities at ( P=68 ) – but that’s just the equilibrium point.
No, it is not effective. The price floor equals the equilibrium price, so the market mechanism naturally achieves $68. There is no excess supply or demand. Government intervention changes nothing. This official source provides the exact question wording
Typical wording (paraphrased):
Demand: ( P = 100 - 2Q_d ) Supply: ( P = 20 + 3Q_s )
Try this twist: If the government instead sets a minimum price of $80 agrees to buy the entire surplus at that price, recalculate producer surplus and government expenditure. Answer: Government buys 10 tonnes at $80 = $800 expenditure; PS then includes surplus sale, making PS = ( 450 + (80 \times 10) ) minus cost of producing extra 10 units? That yields even larger PS and huge taxpayer cost. View the question in the HKCEE Economics Multiple
A past expense that cannot be recovered and should not affect future decisions. A non-refundable application fee paid last year. Common Candidate Pitfalls to Avoid
Let's gather some information about the structure of the HKCEE Economics Paper 2. I'll search for "HKCEE Economics Paper 2 structure". 0 might be about HKDSE, not HKCEE.