You hire some of your friends to help you move to a new house. You pay them a total of $200 and buy them dinner at Pizza Hut. Which of the following is true?
A) If your friends do not report the $200 on their tax forms, it becomes part of the underground economy.
B) Neither the $200 nor the dinner should be counted in GDP because both are household production.
C) The dinner at Pizza Hut should be counted as part of GDP, but not the $200.
D) Hiring your friends is an illegal activity and should not be counted in GDP.
E) The $200 should be counted as part of GDP but not the dinner at Pizza Hut.
Correct Answer:
Verified
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