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Hi,
I want to know which of the following would be excluded from current calculations of GDP:

A. The parenting of a stay at home father to his children
B. The income of a social worker involved in providing therapy for domestic abuse

C. The purchase of a new automobile
D. Pizza purchased by college students for dinner
E. Volunteer work undertaken by Mary Smith

I am thinking it's either A or E because neither one makes an income. Any explanations will be appreciated. Thank you.

2007-01-27 11:20:16 · 2 answers · asked by luck_lucky_charms 1 in Social Science Economics

2 answers

Your hunch is right - it will be A.

E will be picked up in GDP because Mary Smith's volunteer work is going to be a service that is consumed by whomever she is volunteering for (or in the case of Habitat for Humanity, would create new investment in the economy).

2007-01-27 11:59:00 · answer #1 · answered by Anonymous · 0 0

This is not a good question, unless you can choose two answers: definitely A, but also E. Trolling might be correct in some cases but it's not hard to think of other examples of volunteer work where no money changes hands, and therefore there is nothing counted in GDP.

2007-01-27 13:04:36 · answer #2 · answered by KevinStud99 6 · 0 0

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