Question

Tim mows the yard for his neighbors. He spends $1 on gas and charges them $20 for each lawn he mows. What's the total contribution to GDP each time Tim mows a yard?

Answer 1

Answer:

$ 20

Explanation:

Given:

Amount spent on gas = $ 1

Charges for the mows = $ 20

Total contribution to the GDP every time the Tim mows the land will be $ 20.

This is because the GDP includes the final charges only or the expenditures of the final goods. The intermediate spending or the intermediate costs are not included in the GDP