Question

Each​ year, Johan typically does all his own landscaping and yard work. He spends ​$210 per year on mulch for his flower​ beds, ​$216 per year on flowers and​ plants, ​$46 on fertilizer for his​ lawn, and ​$246 on gasoline and lawn mower maintenance. The lawn and garden store where he obtains his mulch and fertilizer charges other customers ​$513 for the service of spreading that much mulch in flower beds and ​$46 for the service of distributing fertilizer over a yard the size of​ Johan's. Paying a professional yard care service to mow his lawn would require an expenditure of ​$1 comma 156 per​ year, but in that case Johan would not have to buy gasoline or maintain his own lawn mower. a. In a normal​ year, calculate by how much does​ Johan's landscaping and yard work contribute to GDP. ​$ nothing.

Answer 1

Answer:

$718

Explanation:

If Johan keeps doing his own landscaping, his contribution to the GDP will include:

• $210 spent on mulch
• $216 spent on flowers and plants
• $46 spent on fertilizer
• $246 spent on gasoline and lawn mower maintenance services

total contribution to the GDP = $210 + $216 + $46 + $246 = $718

All the items that Johan purchases are final goods, but his labor does not add to the GDP because he doesn't sell it to anyone else, he does the garden for his own personal benefit.