Which One of the Following Events Will Reduce GDP

question 96

Multiple Choice

Which one of the following events will reduce GDP?

• A) Mrs. Lee hires a housekeeper.
• B) You buy the ingredients to bake a loaf of bread, but you burn the bread and throw it away.
• C) You decide to work five more hours per week at your bookkeeper job, even though you need more time to study.
• D) An automobile manufacturer lays off 200 workers as the result of a fire in the paint shop.

---

Definitions:

Ultimatum Game

A game in economic experiments where one player proposes how to divide a sum of money with another player who can accept or reject the proposition.

Dictator Game

A behavioral experiment where one participant, the "dictator," determines how to split an amount of money between themselves and another participant.

Neoclassical Economic

A perspective in economics that examines how the allocation of resources, production, and income dispersal in markets are influenced by supply and demand mechanisms.

Self-Interest

The motivation of individuals to pursue their own objectives and benefits.