F.

4 Economics test opportunity cost name： （ ）

1. Max Department Store has launched a promotion campaign. For every purchase of $ 1000, customers are given a coupon to
exchange for the following gifts:

John has accumulated 30 coupons. What is the opportunity cost to John if he uses them to exchange for one air ticket?
A. a TV set
B. $30 000
C. a camera and a TV set
D. a camera a TV set and $30 000

2. Which of the following statements about choice is INCORRECT?

A. People have to choose in order to avoid competition.
B. People have to choose if there is scarcity
C. People choose to option with the least cost.
D. People choose the most preferred option.

3. Peter invites Jason to play tennis in the afternoon. Jason will NOT have opportunity cost if
A. Peter pays the fee for him.
B. he has nothing more worthwhile to do in the afternoon.
C. he likes playing tennis with Peter.
D. None of the above is a correct answer.

4. 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 ___.
A. train … train
B. train … plane
C. plane … train
D. plane … plane

5. The following is an extract from a local newspaper article.

The MTR Corporation raised the railway fares by 5.4% in 2012. This increase was based on the
Fare Adjustment Mechanism set by the government. To respond to the discontent of the public
over the fare increase, the Corporation introduced a concessionary measure “Ride 10 Get 1 Free”.
i. Define opportunity cost. (2 marks)
ii. observed that there were queues of passengers redeeming the free tickets at customer service counters in MTR stations.
Suppose the waiting time is the same for these passengers, is the cost of redeeming the free tickets necessarily the same to
these passengers? Explain. (3 marks)

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