When Mr Wilson Worked Full Time, He Paid a Service to to Have

question 229

Multiple Choice

When Mr. Wilson worked full time, he paid a service to have his house cleaned twice a month. Now that he is retired, Mr. Wilson does his own cleaning. What is the effect on GDP?

• A) GDP is unaffected by this change.
• B) GDP falls as a result of this change.
• C) GDP at first rises but then falls.
• D) GDP rises as a result of this change.

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Definitions:

Birthrate

The ratio of total live births to the population in a specified area or period, usually calculated per thousand inhabitants per year.

Demographic Transition

A theory describing the transition from high birth and death rates to lower birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Demographic Transition

A model describing the transformation of birth and death rates from high to low levels in a society over time, typically associated with economic development.

Resource Demand

The requirement for raw materials, labor, and other inputs needed by businesses to produce goods and services.