Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products.For his wife's birthday,he designs and creates an intricate birdseye maple jewelry box that takes him 15 hours to complete.By how much and in what direction does GDP change as a result of his efforts?
A)GDP rises by $1,875.
B)GDP is not affected by Scott's production of the jewelry box.
C)GDP rises by $125.
D)GDP falls by $1,875.

Question

Quizplus · Accepted Answer

GDP is not affected by Scott's production of the jewelry box because GDP measures the value of goods and services produced within a country's borders and sold in the market. Since Scott's jewelry box is a personal project and not sold in the market, it does not contribute to GDP.

Scott Is a Woodworker and Charges $125 an Hour for His