Scenario: Mike's housekeeper charges $30 for mowing his lawn.
-Refer to the scenario above.Suppose Edwin consumes the total output produced instead of selling part of it.What is likely to happen in this case?
A) GDP will increase.
B) GDP will decrease.
C) GDP will remain unchanged.
D) Trade surplus will increase by $200.

Question

Quizplus · Accepted Answer

When Edwin consumes the total output instead of selling part of it, the transaction does not contribute to the market economy, leading to a decrease in GDP since there's less economic activity being recorded.

Scenario: Mike's Housekeeper Charges $30 for Mowing His Lawn