F.5_ECON_Chapter 1_20240304

Which of the following items is included in government consumption expenditure?

• A. Work Incentive Transport Subsidy (鼓勵就業交通津貼) granted by the government

• B. Tax rebates (退稅) paid by the government

• C. Salary paid to a public librarian

• D. Government expenditure for building a high speed railway

Which of the following will raise GDP?

(1) An increase in inventories

(2) An increase in private consumption expenditure

(3) A decrease in imports

• A. (1) and (2) only

• B. (1) and (3) only

• C. (2) and (3) only

• D. All of the above

Which of the following items can have a negative value?

• A. Exports

• B. Changes in inventories

• C. Gross investment expenditure

• D. Depreciation

Which of the following about the GDP at factor cost is correct?

• A.  It does not include the value of exported goods and services.

• B.  It is equal to the sum of the revenues of all resident producing units.

• C.  It can be greater than the GDP at market prices.

• D.  It does not include the value of semi-finished products.

Miss Leung is a Hong Kong resident. She works for an accounting firm in Hong Kong but she has to meet clients occasionally in Shanghai. The value of her service is ________ in Hong Kong’s GDP. Her shopping expenses in Shanghai are ________ in Hong Kong’s GDP.

• A. included … included

• B. included … not included

• C. not included … included

• D. not included … not included

Suppose a Japanese financial consultant is employed by a Hong Kong financial institution for 10 months. The Japanese financial consultant __________ a resident producing unit of Hong Kong and his salary is __________ in the calculation of Hong Kong’s gross domestic product.

• A. is … included

• B. is … not included

• C. is not … included

• D. is not … not included