If, in the past, you have always painted your own house but now you hire a painting contractor to do the work, what effect does this have on GDP?
A) GDP is unaffected by this change.
B) GDP falls as a result of this change.
C) GDP at first rises but then falls.
D) GDP rises as a result of this change.

Question

Quizplus · Accepted Answer

When you hire a painting contractor, the payment for their services is included in GDP as it is a market transaction, whereas painting your own house is not counted in GDP.

If, in the Past, You Have Always Painted Your Own