Economic Questions

2007-11-25 1:18 am
Identify the immediate effect for each of the following
circumstances on Hong Kong’s GDP and its components. (9 marks)

i Mr and Mrs Leung receive a welfare check from government.

ii Stephen purchases a Japanese digital camera.

iii Mary buys domestically produced bread for breakfast.

回答 (1)

2007-11-25 9:36 pm
✔ 最佳答案
i) It has no effect on the GDP as it is only a TRANSFER PAYMENT.
ii) Hong Kong's imports will increase as HK people purchased overseas (Japanese) goods, thus, GDP decrease.
iii) GDP will increase as domestic consumption rises.


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