Asked by Mikayla Pearson on Apr 25, 2024
Verified
Marianne and Laura are both homemakers with children.When Laura starts to work as an unpaid volunteer at a hospital,she hires Marianne to care for her young child.In this context,the gross domestic product (GDP) will _____.
A) increase
B) decrease
C) remain unaffected
D) increase if Marianne cares for the child better than Laura
E) increase if Laura treats patients with more sincerity than the other volunteers
Gross Domestic Product
A measure of the market value of all final goods and services produced in a country during a specific period, illustrating the size of its economy.
Unpaid Volunteer
An individual who offers services by choice without receiving monetary compensation for their work.
- Recognize the role of non-market activities and various expenditures in GDP formulation.
Verified Answer
ED
Enida Demaj7 days ago
Final Answer :
A
Explanation :
When Laura starts to work as an unpaid volunteer, her activity is not included in the GDP calculation as it is unpaid. However, by hiring Marianne, Laura is contributing to the GDP as she is paying for her services. Therefore, the overall effect is an increase in GDP.
Learning Objectives
- Recognize the role of non-market activities and various expenditures in GDP formulation.