By How Much Does GDP Change Between 2014 and 2015

question 62

Multiple Choice

By how much does GDP change between 2014 and 2015 in the following scenario? In 2014, a rich woman has a chef and pays him $50,000 to cook for her. In 2015, she marries the chef and he continues to cook.

• A) GDP rises by $50,000.
• B) GDP is unchanged.
• C) GDP falls by $50,000.
• D) GDP rises by $25,000.
• E) Not enough information is given.

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Definitions:

Credit Period

The duration of time that a buyer is given by a seller to pay for goods or services received.

Sales Tax

A tax levied by governments on the sale of goods and services, collected by the retailer at the point of purchase.

General Journal Entries

The records of financial transactions in the general journal, noting debits and credits along with a description of each transaction.

Terms of Sale

The conditions under which a seller will complete a sale, typically detailing payment terms, delivery times, and warranties.