Scenario: John and Sue are married and live in the United States. John is a Canadian citizen and stays home with their two children, Micah and Madison; his caretaking is valued at $20,000 per child. He also programs video games from home in the evenings for a Japanese-based online poker site for $50,000 per year. Sue works as a high-powered lawyer for Berkshire Hathaway at their London branch for the U.S. dollar equivalent of $1,00,000 per year.
-Refer to the above scenario.Accounting for non-market based economic production,how much does John contribute to U.S.GDP?
A) $0
B) $40,000
C) $1,000,000
D) $1,040,000

Question

Quizplus · Accepted Answer

John's caretaking of their children is a non-market based economic production, which means it is not included in GDP. However, his programming work for the Japanese-based online poker site is a market-based economic production and is therefore included in GDP. Therefore, John contributes $50,000 per year to U.S. GDP.

Scenario: John and Sue Are Married and Live in the United