(a) Define the term "Gross Domestic Product". (b) The following data belongs to Country G at current market prices in the year of 2021: GDP Components Corporate profits Wages Second hand goods (S Million) 6,500 850 Net interest income 1,000 Private consumption 1,450 Government purchases 3,200 4,800 Subsidy 200 Transfer payment 450 Gross domestic fixed capital 500 formation Increase in inventory 950 Depreciation 750 Export of goods 2,500 Export of services 3,200 Import of goods 2,400 Import of services 1,800 Rental income 800 Indirect taxes 800 Calculate the Gross Domestic Product (GDP) by: (i) the expenditure approach; (4 marks) (4 marks) (ii) the income approach (c) Based on your findings in part (b), calculate the per capita GDP if the size of the population of Country G was 7.5 million. (2 marks) (d) (e) List any FOUR limitations of real Gross Domestic product. (Total: 25 marks) The financial tsunami was hitting Country G hard so the government decided to increase its government purchase by $400 million. Given that the slope of the aggregate expenditure curve of Country G is 0.8, calculate the effect of this increase of government expenditure on Country G's Gross Domestic Product. (8 marks) (4 marks) ! BUS3003 Economics Assignment 2022-2023 (First Semester) HONG KONG INSTITUTE OF VOCATIONAL EDUCATION BUSINESS DISCIPLINE BUS3003 Economics Assignment 2022/23 (First Semester) Date: 7-11 November, 2022 (Week 11) Instructions to Students 1. Answer ALL Two questions. (Total 50 marks) 2. Type all the answers in the word file. If you put all the answers in an A-4 sized paper, please scan and change it into pdf format. 3. You should not write more than 1,000 words on this assignment. 4. It onto Moodle The due date for this assignment is on 2nd December, 2022 (Friday) at be uploaded should 5:00pm. (https://moodle2223.vtc.edu.hk/login/index.php). Late submission will have mark deduction (20% for 1 day late, 50% for two days late and no marks for 3 days late) unless the student concerned can produce a medical certificate for days late. 2022-2023 Page 1 of 3 Question 1 BUS3003 Economics Assignment 2022-2023 (First Semester) sugar in Hollywood Sugar Manufacturing Co. Ltd. is a large-scale factory that has the sole and exclusive control on planting of sugar cane, production of brown sugar and marketing of brown The sole and exclusive right is protected legally by the government with Country X. regulations. The table below shown the demand schedule and the cost schedule of the brown sugar market of Country X: Price Quantity Total Cost ($ per ton) demanded ($ per day) Total Variable Cost (ton Average Total Cost ($ per ton) Total Revenue Marginal Marginal Revenue Cost ($ per day) ($ per ton) ($ per ton) per day) ($ per day) 11 0 300 0 10 50 500 200 9 100 640 340 8 150 780 480 7 200 980 680 6 250 1200 900 5 310 1550 1250 (a) Determine whether Hollywood Sugar Manufacturing Co. Ltd. is (3 marks) operating in short run or long run. Explain your answer. (b) Copy the above table and fill in the column "Average Total Cost", "Total Revenue", "Marginal Revenue" and "Marginal Cost". (10 marks) (c) Using marginal approach to determine the profit maximizing output level per day of Hollywood Sugar Manufacturing Co. Ltd. (2 marks) (d) Calculate how much profit or loss that Hollywood Sugar Manufacturing Co. Ltd would have when it produces at profit maximizing output level. (show all your steps) (2 marks) (e) At the output level stated in part (d), do you think other firms will enter or exit the industry? Please explain. (2 marks) (f) Determine which kind of market structure that Hollywood Sugar Manufacturing Co. Ltd is staying in and explain your answer with TWO reasons. (g) Discuss any THREE disadvantages that this kind of market structure may incur to the economy. (3 marks) (3 marks) (Total: 25 marks) 2022-2023 Page 2 of 3