Economics problem? Please answer if known?

Question

Suppose that instead of cooking dinner for an hour, you decide to wok an extra hour, earning an additional $12. You then buy some chinese food for $10. By how much does measured GDP increase?
Does the true GDP increase or decrease?

Answer 1

That would depend on a couple of things. First, GDP is the value of all finished goods. It does not include intermediate goods. For example, a loaf of bread sold to the public is included. The flour bought by the baker to make the bread is not included since it is not a final product.

The Chinese food would be included in GDP. It is a finished good. If the work you do is a finished product, meaning your labor is directly purchased by the consumer, then it would be included in GDP. Otherwise, it would be considered an intermediate good and would not be included.

Hope this helps.

Answer 2

you didnt give all the details so we cannot answer it. But, I will give you the structure in which to figure it out. First off, you make an additional 12 dollars. And then you buy chinese food for 10 dollars. You are supposed to add this together, so you get 22 dollars. But, how much is GDP currently? you never told us. if GDP is 100 dollars, then you get an additional 22 dollars on top of that $100. But, also, if you make an additional 12 dollars, how much does the owner of the business sell your labor for? And if its a product that someone buys to run their business, what do they sell your boss' product for? So, all those figures have to be added in, and compared with current GDP. GDP in essence is all exchanges added together. In this example, GDP does increase. It cannot be negative because GDP is an absolute number. Whatever is exchanged, is added into the GDP.

Answer 3

1) gdp increases by $2
2) 20%

Answer 4

that's a trick question, be careful! GDP is the great cost, measured in modern-day industry expenditures, of all very final products and centers produced in the financial gadget for the period of a given year. 2 techniques of calculation: costs & earnings costs: GDP=C+I+G+(X-m) or client expeditures + investment + government spending + (Exports-imports) earnings: GDP=worker pay + activity + Coporate earnings + condo earnings + vendors earnings So, it relies upon which way you're calculating GDP. while you're making use of earnings, it is going up by skill of $12. while you're making use of costs, it is going up by skill of $10. sturdy success!