If you mow the lawn yourself,the lawn mowing is considered household production.If you pay Larry's Lawn Service to mow your lawn,the lawn mowing is considered
A)a leisure time activity.
B)a service,that will be counted as part of GDP.
C)a service,but is not counted as part of GDP because it simply replaces a service you used to perform.
D)rent,and therefore is counted as part of GDP.
E)underground production because it replaces the underground production of you mowing your lawn.

Question

Quizplus · Accepted Answer

When you pay Larry's Lawn Service to mow your lawn, it is considered a service that is counted as part of GDP because it is a transaction in the market economy. The service is adding value to your household by providing a service that you cannot perform yourself. Therefore, it is included in the calculation of GDP.

If You Mow the Lawn Yourself,the Lawn Mowing Is Considered