Scenario: Jane sewed a prom dress, which she could have bought for $180 from a store.
-Refer to the scenario above.Which of the following will happen if she keeps the dress for herself?

Question

Quizplus · Accepted Answer

Keeping the dress for herself will not have any direct impact on the GDP of her country or the trade deficit/surplus. GDP measures the total value of goods and services produced in a country, and since Jane did not sell the dress, it does not contribute to the production of goods and services. Similarly, the trade deficit or surplus is determined by the difference between a country's imports and exports, and Jane's decision to keep the dress does not involve any international trade. Therefore, the GDP of her country will remain unchanged and there will be no impact on the trade deficit or surplus.

Scenario: Jane Sewed a Prom Dress, Which She Could Have