Question

Each year, Johan typically does all his own land- scaping and yard work. He spends $200 per year on mulch for his f lower beds, $225 per year on f lowers and plants, $50 on fertilizer for his lawn, and $245 on gasoline and lawn mower maintenance. The lawn and garden store where he obtains his mulch and fertilizer charges other customers $500 for the service of spreading that much mulch in flower beds and $50 for the service of distributing fertilizer over a yard the size of Johan’s. Paying a profes- sional yard care service to mow his lawn would require an expenditure of $1,200 per year, but in that case Johan would not have to buy gasoline or maintain his own lawn mower. a. In a normal year, how much does Johan's landscaping and yard work contribute to GDP?

Answer 1

Answer:

$720

Explanation:

Data provided in the question:

Amount spent on mulch = $200

Amount spent on flowers and plants = $225

Amount spent on gasoline and lawn mower maintenance = $245

Amount spent on fertilizer for his lawn = $50

service of spreading = $500

service of distributing fertilizer = $50

expenditure = $1,200 per year

Now,

Johan's landscaping and yard work contribution to GDP

= Amount spent on mulch + Amount spent on flowers and plants + Amount spent on gasoline and lawn mower maintenance + Amount spent on fertilizer for his lawn

= $200 + $225 + $245 + $50

= $720

Hence,

Johan's landscaping and yard work contribution to GDP is $720