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You Hire Some of Your Friends to Help You Move

Question 216

Multiple Choice

You hire some of your friends to help you move to a new house.You pay them a total of $200 and buy them dinner at Pizza Hut.Which of the following is true?


A) The $200 should be counted as part of GDP but not the dinner at Pizza Hut.
B) If your friends do not report the $200 on their tax forms,it becomes part of the underground economy.
C) The dinner at Pizza Hut should be counted as part of GDP,but not the $200.
D) Hiring your friends is an illegal activity and should not be counted in GDP.
E) Neither the $200 nor the dinner should be counted in GDP because both are household production.

Correct Answer:

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