Over time, people have come to rely more on market-produced goods and less on goods that they produce for themselves. For example, busy people with high incomes, rather than cleaning their own houses, hire people to clean their houses. By itself, this change has
A) caused GDP to fall.
B) not caused any change in GDP.
C) caused GDP to rise.
D) probably changed GDP, but in an uncertain direction; the direction of the change depends on the difference in the quality of the cleaning that has resulted.

Question

Quizplus · Accepted Answer

The shift towards market-produced goods has likely caused GDP to rise as it increases the demand for paid services and creates jobs in those sectors. The increase in demand for cleaning services, for example, generates income for individuals who provide those services and contribute to the GDP of the country.

Over Time, People Have Come to Rely More on Market-Produced