Joe has a full-time construction job and also does odd jobs for people on the weekends but does not report this income to the government. You have purchased the materials needed to construct a fence at your house and you pay Joe $500 to build the fence. Does the payment to Joe count toward the value of gross domestic product (GDP)? O a) No, his is a nonmarket activity. O b) Yes, the fence increases the value of your house. Oc) Yes, all income earned counts in GDP. O d) No, this income is not reported to the government. O e) No, this is a leisure activity.
Joe has a full-time construction job and also does odd jobs for people on the weekends but does not report this income to the government. You have purchased the materials needed to construct a fence at your house and you pay Joe $500 to build the fence. Does the payment to Joe count toward the value of gross domestic product (GDP)? O a) No, his is a nonmarket activity. O b) Yes, the fence increases the value of your house. Oc) Yes, all income earned counts in GDP. O d) No, this income is not reported to the government. O e) No, this is a leisure activity.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Question 17
Joe has a full-time construction job and also does odd jobs for people on the
weekends but does not report this income to the government. You have purchased
the materials needed to construct a fence at your house and you pay Joe $500 to
build the fence. Does the payment to Joe count toward the value of gross domestic
product (GDP)?
O a) No, his is a nonmarket activity.
O b) Yes, the fence increases the value of your house.
Oc) Yes, all income earned counts in GDP.
O d) No, this income is not reported to the government.
O e) No, this is a leisure activity.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa22a4c5c-e434-4eba-ad0a-42536fa0a19f%2F3a329f7e-6461-425d-b4f8-50f47d577216%2Fvqah2fd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 17
Joe has a full-time construction job and also does odd jobs for people on the
weekends but does not report this income to the government. You have purchased
the materials needed to construct a fence at your house and you pay Joe $500 to
build the fence. Does the payment to Joe count toward the value of gross domestic
product (GDP)?
O a) No, his is a nonmarket activity.
O b) Yes, the fence increases the value of your house.
Oc) Yes, all income earned counts in GDP.
O d) No, this income is not reported to the government.
O e) No, this is a leisure activity.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education