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. How much does John contribute to U.S. GDP?
A) $0
B) $20,000
C) $40,000
D) $80,000

Question

Quizplus · Accepted Answer

John's caretaking is not included in GDP as it is not a market transaction. His programming work for a foreign company is also not included in U.S. GDP as it is not produced within the U.S. borders.

John and Sue Are Married and Live in the United