HomeworkLib
Question

My car breaks down, so I spend $1,000 at the mechanic to repair it. The repair...

My car breaks down, so I spend $1,000 at the mechanic to repair it. The repair doesn’t work, so I try to fix it myself (I use the equivalent of $400 of my own labor). The car still doesn’t work. To cheer myself up, I buy some crack cocaine from a local drug dealer for $100. How much do these three transactions increase the GDP of the nation? Explain your answer.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer - The GDP of the economy will only increase by the amount of $ 1000. This is because this expenditure has been incurred in real terms and it will form the income of the motor mechanic . Also it is the consumption expenditure for the me . Hence it will be included.

Cocaine is illegal drug and hence its value of consumption will not be included in GDP.

Since no monetary value has been produced in doing the repairs by oneself , it will also not be added in GDP.

Hence only $ 1000 will be added to GDP.

0 0
Add a comment
Know the answer?
Add Answer to:
My car breaks down, so I spend $1,000 at the mechanic to repair it. The repair...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Java - Car Dealership Hey, so i am having a little trouble with my code, so...

    Java - Car Dealership Hey, so i am having a little trouble with my code, so in my dealer class each of the setName for the salesman have errors and im not sure why. Any and all help is greatly appreciated. package app5; import java.util.Scanner; class Salesman { private int ID; private String name; private double commRate; private double totalComm; private int numberOfSales; } class Car { static int count = 0; public String year; public String model; public String...

  • My whole life I have definitely been a type A person. I have always been goal-oriented...

    My whole life I have definitely been a type A person. I have always been goal-oriented and very driven to succeed. I don’t think that is necessarily a bad thing, but it can definitely lead to stress. In college I had a very demanding engineering major. I also worked part time. Between homework and work I was extremely busy, so I would be very upset if anything got in the way of what I needed to do. Traffic jams would...

  • Question if business law and i want full explanation from the side of defense and plaintiffs..Please....

    Question if business law and i want full explanation from the side of defense and plaintiffs..Please. This question is of Business Law...A case of comtact and remedies ..I want a 1 page explaintion from the side of defense. mal Pare charged by skill ding contractor himself bie's account. He stated ld manufacture kitchen shape of those made by He offered Trebic 6800 CASE 7 Kenya Marsh d not only provide h shall wished to purchase an automobile that only provide...

  • Answer the following questions so I can double check my work Controls the flow of execution...

    Answer the following questions so I can double check my work Controls the flow of execution based on a condition begin...end try...catch goto if...else 10 points    QUESTION 2 Changes the database context to the specified database. set alter exec use 10 points    QUESTION 3 Exits the innermost WHILE loop. goto quit return break 10 points    QUESTION 4 Controls the flow of execution when an error occurs declare on error goto try...catch continue...error 10 points    QUESTION 5...

  • Interpersonal Communication Subject! Advice Column Assignment - Guidelines If you’ve perused a newspaper before, you’re probably...

    Interpersonal Communication Subject! Advice Column Assignment - Guidelines If you’ve perused a newspaper before, you’re probably familiar with the various advice columnists (“Dear Abby” comes to mind) who help out distraught individuals in managing any number of interpersonal crises in his/her life. This assignment is divided into two parts: One where you'll be assuming the role of the letter writer who presents the problem, and another where you'll play the role of the actual advice columnist and respond to letters....

  • The Exercise This exercise is focused on adapting to different national cultures. To prepare for it...

    The Exercise This exercise is focused on adapting to different national cultures. To prepare for it the read the material found here the 6 D model of national culture and read the article “Seven secrets…” that accompanies this file. You may find this link useful: Hofstede country comparisons. Assume that you have been working for a large multinational corporation in Chicago for two years job after graduating from college. To advance in your career, you must complete a two year...

  • David’s Story “Life is difficult.” I once read these three trivial words in a book, but...

    David’s Story “Life is difficult.” I once read these three trivial words in a book, but never knew how true to life and impactful they would be until one fateful fall evening. Before I begin, let me back up and tell you more about who I am and how I got here. I am a Caucasian male raised in a small conservative town in Maine by hard-working middle-class parents. My compassionate mother juggled raising three rambunctious children, me being the...

  • Roberts Auto Sales and Service (RASAS) consists of three car dealerships that sell and service several...

    Roberts Auto Sales and Service (RASAS) consists of three car dealerships that sell and service several makes of American and Japanese cars, two auto parts stores, a large body shop and car painting business, and an auto salvage yard. Vicky Roberts, owner of RASAS, went into the car business when she inherited a Ford dealership from her father. She was able to capitalize on her knowledge and experience to build her business into the diversified and successful mini-empire it is...

  • THE CASE Sameer Arkell and Marcy Haddow had worked for Crowdsite, an international computer repair service,...

    THE CASE Sameer Arkell and Marcy Haddow had worked for Crowdsite, an international computer repair service, for ten years. It therefore came as a surprise when they both received lay-off notices on a Friday afternoon early January 2015. Both were given severance packages that matched their seniority so they decided that this might be the catalyst to launch their own business repairing computers and related equipment for businesses in their community. Both were single and had no children, so no...

  • Case Study - Joey Joey is an undergraduate psychology student attending a local college. His grades...

    Case Study - Joey Joey is an undergraduate psychology student attending a local college. His grades are adequate but increasingly he has been having behavioural issues at school - he showed up intoxicated on two occasions to his class and one time to his lab. School administrators asked Joey to see a counsellor as a condition of not being expelled. He agreed to do so. To the counsellor, Joey admitted that he was a "party-animal" when he was younger, having...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT