Ask Question
BusinessBusiness
4 September, 08:18

Suppose Gerald works for Lola as a production assistant. Gerald and Lola fall in love, get married and have children. Gerald stops working for Lola in order to care for the children. What will be the effect of this scenario on GDP?

+1
Answers (1)
  1. 4 September, 08:21
    0
    The GDP will decrease.

    Explanation:

    The GDP of an economy includes the value of final goods and services produced in the economy within a given period. It does not include the value of the underground economy, intermediate goods and home production of goods and services.

    When Gerald was working as production assistant the value of his production was included in the GDP. When he stops working to care for his children, he is not making any income. The value of taking care of children will not be included in the GDP as it does not involves any economic transaction. So this will cause the GDP to decrease.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose Gerald works for Lola as a production assistant. Gerald and Lola fall in love, get married and have children. Gerald stops working ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Keating Co. is considering disposing of equipment that cost $72,000 and has $50,400 of accumulated depreciation to date. Keating Co. can sell the equipment through a broker for $27,000 less a 10% commission. Alternatively, Gunner Co.
Answers (1)
All new employees must first complete a six-week training program.
Answers (1)
An intervening force, which happens after the defendant's negligent act and contributes to the plaintiff's injury, can excuse the defendant from liability if it: could have been anticipated. was proximate. was unforeseeable.
Answers (1)
Scarcity generates which general questions in an economy: a. Should people buy tacos or enchiladas? b. How to produce, why to produce it, and when to produce it? c. What to produce, why to produce it, and when to produce it? d.
Answers (1)
Marketing firms strive to ensure that people are aware of their products because people assume that if they have heard about certain products, the products will work well.
Answers (1)
New Questions in Business
The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below: Job Standard Hours Standard Rate Standard Cost Motor tune-up 1.50 $6.20 $9.
Answers (1)
Haberdash inc. last year reported sales of $12 million and an inventory turnover ratio of 3. the company is now adopting a just-in-time inventory system.
Answers (1)
Tara is responsible for the strategic planning retail planning process in her organization. She has identified the strategic opportunities. Which of the following steps is most likely Zara's next stage in the strategic retail planning process? A.
Answers (1)
During 2015, Blevert Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects.
Answers (1)
There are five stakeholders a company must consider when practicing social responsibility: Group of answer choices Employees Investors Environment Community Countries Customers Board of Directors
Answers (1)
Home » Business » Suppose Gerald works for Lola as a production assistant. Gerald and Lola fall in love, get married and have children. Gerald stops working for Lola in order to care for the children. What will be the effect of this scenario on GDP?
Sign Up Forgot Password?