Joe Has a Full-Time Construction Job and Also Does Odd

question 170

Multiple Choice

Joe has a full-time construction job and also does odd jobs for people on the weekends.You have purchased the materials needed to construct a fence at your house and you pay Joe $500 in cash to build the fence.Does the payment to Joe count toward the value of GDP?

• A) Yes, the fence increases the value of your house.
• B) Yes, all income earned counts in GDP.
• C) No, his is a non-market activity.
• D) Only if this income is reported to the government.
• E) No, this is a leisure activity.

---

Definitions:

Flow of Finance

Refers to the movement of money among various participants in an economy including institutions, markets, individuals, and governments.

Learning by Doing

A theory that suggests proficiency and efficiency improve over time through practice and hands-on experience.

Regional Level

Refers to the geographical tier that encompasses localities within a larger national or international context, focusing on specific area-based initiatives or characteristics.

Smaller Firms

Refers to businesses that are relatively small in size, often characterized by fewer employees, lower annual revenues, and limited market share compared to larger corporations.