Marla is an architect who is designing a home for Chuck.Chuck is paying Marla $150 per hour to design his new home.When Chuck and Marla get married,Marla continues to work on designing the home,but she no longer charges Chuck for her work.As a result,GDP ________ because ________.
A)falls; Marla's work takes place in the underground economy once she's married
B)falls; Marla's work becomes less valuable once she's married
C)falls; Marla's architectural design services are no longer bought by Chuck once they're married
D)rises; Marla becomes more productive once she's married

Question

Quizplus · Accepted Answer

GDP falls because Marla's architectural design services are no longer bought by Chuck once they are married. GDP only includes the production of goods and services that are sold in the market, and since Marla's services are no longer being paid for, they are no longer included in GDP. There is no indication that Marla's work is moving to the underground economy or that it becomes less valuable or that she becomes more productive once she's married, so options A, B, and D are not correct.

Marla Is an Architect Who Is Designing a Home for Chuck.Chuck