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ECOS4Y23T1ANS
ECOS4Y23T1ANS
5/14)
Total marks: 60
Section A: Multiple-choice Questions (20 marks) g
1
11
C
C
2
12
D
D
3
13
D
A 004
14
B
B
5
15
A
C
6
16
A
A
7
17
D
B
8
18
B
C
9
19 D
B 10
20
C
A
I
People are willing to pay a cost/price for the free tickets. 1
1. (b) The (full) opportunity cost of waiting in the queue is the sum of monetary cost (if any) and
the non-monetary/time cost (measured by the highest-valued alternative use of time
involved).
Medical doctors have a higher income forgone than full-time housewives. feet 1
1
-
I
so medical doctors have a higher time cost/higher full cost of waiting in the queue. 1
↓
2. (a)(ii) For whom to produce 1
because it involves a decision on the distribution/allocation of goods/services (by
Feb
-
I
adjusting the prices charged). 1
3. (b)(ii) No because 1
his preference for early sleep may increase the value of the third priority to a level
higher than that of the second priority.
The cost of going to the carnival may now increase from the value of the second
1 -
3
priority/movie at home, to that of the third priority/sleep early. 1
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3. (c) The anniversary souvenirs are interest to Mr Wong because they are the cost of 1
earlier availability of resources/popcorn machine. 1
The anniversary souvenirs are interest to Mr Lee because they are the compensation 1
for deferred/delayed consumption of resources/popcorn machine. 1
4. (a) X = 2 1
Y= 4 1
4. (b) No 1
a fall in price will lead to a rise in quantity demanded, NOT demand, 1
holding all other factors constant (including the income of consumers). 1
4. (c) Queenie 1
because her quantity demanded remains unchanged/does not rise, when the price falls. 1
4. (d)
Price D
10
8
0 Quantity
2 3
END OF ANSWER
ECOS4Y23T1ANS 2