Question 1 Ava who is 35 years old is a chartered accountant working in a famous accounting firm in Hong Kong with a monthly salary of HK$35,000. She is single and living in her own apartment with a domestic helper from Philippines. The cost for keeping the domestic helper is HK$6,000 per month. Recently, all the employees of the accounting firm have been informed by the HR department that there would be a salary freeze in the coming financial year because of the COVID-19 causing a serious economic downturn in Hong Kong. Ava is really unhappy with this announcement. In view of this, Ava has an idea to quit her job so as to take a one-year working holiday in Australia that she has longed for a chance to explore the World since she was a secondary student. After conducting some researches, she estimates the living expenses in Australia would be around HK$200,000 a year including the application fee of the working visa. She is confident to get an accounting-related job in Australia for a monthly salary of HK$20,000. For the year in Australia, she would rent her apartment out with an expected monthly rental income of HK$15,000. Of course, she would terminate the domestic helper's contract. Ava now is considering whether to take the one-year working holiday in Australia. (a) What is the total opportunity cost for Ava to take the one-year working holiday in Australia? Explain with relevant data from the case. List the relevant items and show your workings as appropriate. (b) What is the total expected benefit for Ava to take the one-year working holiday in Australia? Explain with relevant data from the case. (c) Based on the concept of rational choice related to cost and benefit, under what situation, Ava should take the one-year working holiday in Australia? Explain based on your answer of part (a) and (b).