While the exact wording varies across translated versions, Question 2 in the 2010 Paper 2 (Multiple Choice) typically presents a scenario involving a "free" service or product to test the definition of an .
An economic good is any good where the quantity demanded exceeds the quantity supplied at zero price.
The is a classic multiple-choice question focused on the foundational concept of Scarcity and Economic Goods . In the final years of the HKCEE (1978–2011) , examiners frequently used these early questions to test whether students could distinguish between "economic goods" and "free goods" based on the presence of opportunity cost. Question Overview hkcee 2010 econ paper 2 q2
Students often confuse "free of charge" with a "free good." In economics, if producing or consuming a good requires giving up something else (opportunity cost), it remains an economic good even if the price is $0. Correct Answer & Rationale
Choosing an option that suggested a good becomes "free" because it is provided by the government. While the exact wording varies across translated versions,
To master this topic for DSE or historical review, focus on these criteria:
A price of $0 does not mean the cost is $0. In the final years of the HKCEE (1978–2011)
If it takes effort or resources to make, it has an opportunity cost.
According to Herman Yeung's analysis , many candidates failed to recognize that "scarcity" doesn't mean a good is "rare"; it simply means there isn't enough to satisfy everyone's unlimited wants.
If more than one person wants the same unit of a good, it is scarce.
