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1.

The following diagram shows a production chain of garments in an economy. It also indicates the selling price of the output in different stages of the production. The imported raw materials are worth $6 000.

Question figure

Suppose the garment trading company has received $1 000 export subsidy from the government. What is the contribution of the above production chain to the economy's GDP at factor cost?

2.

Which of the following items can be negative in value?

(1)Net external factor income flow
(2)Net exports
(3)Net domestic fixed capital formation
3.

Study the following table and answer questions 26 and 27.

GDP Items$ billion
Private consumption expenditure100
Gross domestic fixed capital formation200
Changes in inventories-50
Depreciation10
Government consumption expenditure150
Transfer payments20
Indirect taxes100
Subsidies40
Net exports of goods and services-15

The GDP at market price is $________ billion.

4.

Study the following table and answer questions 26 and 27.

GDP Items$ billion
Private consumption expenditure100
Gross domestic fixed capital formation200
Changes in inventories-50
Depreciation10
Government consumption expenditure150
Transfer payments20
Indirect taxes100
Subsidies40
Net exports of goods and services-15

The GDP at factor cost is $________ billion.

5.

The following diagram shows a production chain of computers in an economy. It involves the import of $6 000 worth of raw materials.

Question figure

What is the contribution of the above production chain to the economy's GDP at factor cost ?

6.

The per capita real GDP of a country would overstate the living standard of its people because it

(1)does not reflect the improvement in the quality of goods and services produced.
(2)does not reflect the uneven distribution of income.
(3)does not reflect the undesirable effects of production.
(4)excludes the calculation of the goods and services not transacted in the market.
7.

Which of the following amounts should be deducted from the GDP of Hong Kong in order to calculate the gross national product of Hong Kong?

8.

Year-on-year percentage change:

YearGDP at current market pricesGDP at constant (2000) market prices
20079.5%6.4%
20083.8%2.4%

Based on the above information, we can conclude that in 2008,

9.

Refer to the following circular flow of Economy A:

Question figure

Flow X represents

10.

The following diagram shows a production chain of computers in an economy. It involves the import of $5 000 worth of raw materials.

Question figure

What is the contribution of the above production chain to the economy's gross domestic product (GDP) at factor cost?

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