2010-2011 Economics project

1. 2010-2011 Economics project Lamma Island 1

2. GROUP MEMBERS • Chan Chi Lok William(4D24) • Tam Cheuk Hang(4D04) Ng Chun Fung Alvin(4D10)Fung Weng Yi Winnie (4D18) 2

3. The Photograph of ours 3

4. Content • Concept1---- secondary production ------------------P.5 • Concept2----tertiary production-------------------------P.6 • Concept3---- production costs---------------------------P.7 • Concept4----capital------------------------------------------P.8 • Concept5----labour & time rate--------------------------P.9 • Concept6---- sole proprietorship-------------------------P.10 • Concept7---- public goods--------------------------------P.11 • Concept8----private goods--------------------------------P.12 • Concept9----demand & supply--------------------------P.13 • The diagram of demand and supply------------------P.14 • Answering the questions------------------------------------P.15 • If the weather is very good and very bad-----------P.16 • Reflection--------------------------------------------------------P.17&18 4

5. Concept 1 • It belongs to secondary production. It turns raw materials into semi finished products and finished products. 5

6. Concept 2 • Besides, it belongs to tertiary production. It provides services to the customers. 6

7. Concept 3 • It has production costs. They are fixed cost and variable cost. • The fixed cost of a shop is actually its rent. It will not change as a result of changes in output. • The variable cost of the shop is the electricity or amount of ordering ice-cream, to list just a few. 7

8. Concept 4 It belongs to capital. It is a man made resources used in production. Capital formation means the creation of capital, it is negative related to the interest rate 8

9. Concept 5 • He is labour. He need to put his mental and physical efforts into production. • He is paid by time rate. Although it can lower the cost of wage calculation, workers may work slowly and shrinking. Supervision is needed. 9

10. Concept 6 • It belongs to sole proprietorship. It is a firm owned by an individual. • Advantage: The owner can maintain the close relationship with his customers. • Disadvantage: The owner has unlimited liability. The owner must bear all the debt. 10

11. Concept 7 • Sea is public good. It is non-rival and non-excludable in consumption. It can serve different consumers at the same time 11

12. Concept 8 • Residential flats are private goods. They are rival and excludable in consumption. It can prevent others from enjoying it. 12

13. Concept 9 As we know, the residents live in Lamma Island is 6000 people. Most of them work in Central or Causeway Bay. Before we visited the Island, the demand of the catering services is low so the supply is also lower. However, when we were visiting the Island, the demand catering service increased drastically. The supply of catering service also increased. 13

14. The diagram of demand and supply When we visited the Island and ate lunch, the demand for catering service will increase (from D0 to D1).the supply will also increase because there are a lot of students come to have their lunch (from S0 to S1).The equilibrium quantity would increase(from Q0 to Q1) . Since the increase in demand is equal to increase in supply, the equilibrium price remain unchanged. 14

15. Answering the questions • What is the opportunity costs of taking park in the fieldtrip on Lamma Island? • Money cost: • 1)The fee of taking ferry to the island and back to Central. • 2)The expenditure is high when eating on island’s restaurant. • 3)The fee of buying souvenirs to friends (maybe) • Time cost: • 1)Lose the time of studying at school. 15

16. If the weather is very good and very bad Since the opportunity cost of going to Lamma Island is the lunch fee or the studying time at school. If the weather is good, the value of highest-valued options forgone has remain unchanged. Therefore, the opportunity cost remain unchanged 16

17. Reflection The target of visiting Lamma Island this time was aiming to know more about what we are learning out school such as the application of renewable energy, the technique of running a store, the economic structure if a place and so on. Surprisingly, we gain more that we desire after this field trip to Lamma Island. Not only can we achieve our target, but also gain the unexpected target. After this filed trip, we learnt a lot of things that we cannot count one by one. For example, the passion of the people there, how peaceful they were in Lamma Island, the importance of building up a renewable way. 17

18. Reflection On the other hand, because we need to do the project on Lamma Island for three short subject, geography, economics and liberal studies. We pay more attention on every thing on the Lamma. Thus, we could saw loads of beautiful thing on Lamma Island. Moreover is that, during visiting Lamma Island, we had a lots of fun and happiness there, as well as we each other had made good friend. After this wonderful field trip, all of our group member had because good buddies. We have enriched our knowledge and widened our horizon. We really hope there will be a field trip soon. 18

19. THE END 19