Scenario: John and Sue Are Married and Live in the United

question 10

Multiple Choice

Scenario: John and Sue are married and live in the United States. John is a Canadian citizen and stays home with their two children, Micah and Madison; his caretaking is valued at $20,000 per child. He also programs video games from home in the evenings for a Japanese-based online poker site for $50,000 per year. Sue works as a high-powered lawyer for Berkshire Hathaway at their London branch for the U.S. dollar equivalent of $1,00,000 per year.
-Refer to the above scenario.Accounting for non-market based economic production,how much does John contribute to U.S.GDP?

• A) $0
• B) $40,000
• C) $1,000,000
• D) $1,040,000

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Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.