Marianne and Laura are both homemakers with children.When Laura starts to work as an unpaid volunteer at a hospital,she hires Marianne to care for her young child.In this context,the gross domestic product (GDP)will _____.
A)increase
B)decrease
C)remain unaffected
D)increase if Marianne cares for the child better than Laura
E)increase if Laura treats patients with more sincerity than the other volunteers

Question

Quizplus · Accepted Answer

When Laura starts to work as an unpaid volunteer, her activity is not included in the GDP calculation as it is unpaid. However, by hiring Marianne, Laura is contributing to the GDP as she is paying for her services. Therefore, the overall effect is an increase in GDP.

Marianne and Laura Are Both Homemakers with Children