If a friend helps you with your homework,it will not be calculated in the GDP accounts.But if you hire a tutor who reports the income,the services will be counted in GDP.

Question

Quizplus · Accepted Answer

This is because GDP only includes the value of goods and services sold in the market, not those that are produced for personal or non-market use. If a friend helps you with your homework, there is no market transaction involved, so it is not included in GDP. However, if you hire a tutor who reports the income, it is considered a market transaction and is included in GDP.

If a Friend Helps You with Your Homework,it Will Not