GDP Flashcards
why transfer of payment is not counted in GDP
there is no corresponding production
is the estimated rental value of an owner occupied property in Hong Kong included in the calculation of GDP
yes
it is the private consumption expenditure in Hong Kong.
is the capital gain earned by a Japanese a net income payable to aboard?
NO
captial gain=/= income (production)
income is wage profit interest rent
why sometimes the contribution to GDP of one investment is lower than the value of investment
raw materials in the investment are imported so they are not current production of Hong Kong
raw materials in the investment are from past inventories so they are not current production of Hong Kong
40 million of japan TV sets are smuggled from HK to China
whole 40 million included in HK GDP?
No
part of them is not produced in Hong Kong
part of them is unreported transaction
would destoyed products be included in GDP
no
not sold in the market and thus not counted in production (output approach)
because it neither counted in consumption nor investment (expenditure approach)
should sewage charges include in GDP
yes
it is the payment for the services provided by the government
why value added approach will not lead to double counting
input cost is deducted at every stage of production
why expenditure approach will not lead to double counting
only the expenditures on final goods and services are summed up
should the payment of the shares be included in GDP
no
its just a transfer of ownership of existing asset
it does not relate to any current production
table: private consumption expenditure: 400 million
why real consumption must be higher than 400 million
spent money on secondhand good
there are unreported transaction
spent money on goods which are classified as investment expenditure (such as new flat)
consumers down payment for goods produced in future years
why the contribution of the export firms to GDP could be smaller than the total export value of this firm
Firm A’s contribution is the value added by A to the production. Other firms’ contribution in the production process should have been deducted
the total export value may have included part of the inventory in past years
currency appreciate
GDP increase?
no
capital gain does not involve production
why the daily economic loss under typhoon day is less than average GDP per day
some production activities are still undergoing
some production activities are generated like emergency service during typhoon
some production activities disrupted during typhoon can be compensated later
when export value decrease
why the total decrease in GDP may be larger than that value
spillover effect (no need to know this term) the decrease in income because of decreasing export value will lead to a decrease in private consumption expenditure
can gross domestic fixed capital formation be negative
no
頂盡0
will HK’s GDP be affected by the transaction of second-hand goods
yes
the services of property agents , bank, lawyer, and the government adds value to the GDP
when the value of re-export > value of domestic export
is it a must that re-export contribute more to the national income of Hong Kong than domestic exports?
No
The contribution to the national income depends on the value-added
For domestic exports of goods, Hong Kong adds value onto the imported raw materials and semi-manufactured goods mainly by providing labour services.
For re-export, Hong Kong earns income from providing services to the re-export trade
The income earned from domestically-produced goods for exports can be smaller or greater than that from servicing re-exports
eg import value for re-export 250
reexport value 300
then value added only 50
is charity donation a production
no
how the smuggling of gasoline affect the GDP
smuggled gasoline has no official record in the GDP figures
and the sales of petroleum companies decrease
GDP decreases
when sales revenue decreases by 200 million
why the reduction in that part of GDP contributed by the agency is less than 200 million
the value of import bought by this firm for its production
the value of output of other firms in HK that are bought by this firm for its production (intermediate good)
why top-quality mainland students staying in hk can increase hk’s potential gdp
larger labour force
top-quality mainland students have a higher productivity
top-quality students can increase the productivity of the local employees when they work together
why tourist buying imported souvenir can improve the current account
imported souvenir will decrease the current balance
the souvenirs sold to inbound tourist increase
the decrease in the current account balance is smaller than the increase in the current account balance
there is value added to the souvenir by local service provider
