Question

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 to build the fence. Does the payment to Joe count toward the value of GDP?
a. No, if this income is not likely to be reported to the government.
b. Yes, all income earned counts in GDP.
c. Yes, the fence increases the value of your house.
d. No, his is a non-market activity.
e. No, this is a leisure activity.

Answer 1

Answer:

a. No, if this income is not likely to be reported to the government.

Explanation:

The GDP refers to the gross domestic product which refers to the finalized value of the goods and services that are produced in the domestic country

In the given case since the job is done on an odd basis and the payment is made without any bill or evidence which is treated as an ineligible for the tax payment

Therefore the correct option is a.