When someone stops mowing his own lawn and hires a lawn service to mow it for him, what happens to GDP? (Assume that the lawn service reports its income to the IRS.)
A. It falls because hiring a lawn service reduced the amount of other goods that the person could purchase.
B. It rises because GDP includes the value of the additional leisure time that the person gets by hiring someone else.
C. Nothing; the same lawns are being mowed, so production has not changed.
D. It rises because when the person used to mow his own lawn it was a nonmarket production, which is not counted, but the hiring of the lawn service is counted in the GDP.
Answer: D
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