Scenario: Mike's housekeeper charges $30 for mowing his lawn.
-Refer to the scenario above.Which of the following will happen if Mike decides to mow his lawn himself instead of paying his housekeeper for the service?
A) GDP will increase.
B) GDP will decrease.
C) Income per capita will increase.
D) GDP will remain unchanged.

Question

Quizplus · Accepted Answer

If Mike decides to mow his lawn himself instead of paying his housekeeper, there will be a decreased economic activity, which will result in a decrease in GDP. Therefore, the best choice is B. None of the other options are relevant to this scenario.

Scenario: Mike's Housekeeper Charges $30 for Mowing His Lawn