James owns two houses. He rents one house to the Johnson family for $10,000 per year. He lives in the other house. If he were to rent the house in which he lives, he could earn $12,000 per year in rent. How much do the housing services provided by the two houses contribute to GDP?

a. $0
b. $10,000
c. $12,000
d. $22,000


d

Economics

You might also like to view...

When the Federal Reserve conducts open market purchases to increase bank reserves without trying to alter the interest rate that is already close to zero, the policy action is called

A) qualitative easing. B) quantitative easing. C) qualitative tightening. D) quantitative tightening.

Economics

The profits of the follower in a Stackelberg duopoly:

A. All the statements associated with this question are correct. B. are less than those of the leader. C. are greater than those of the leader. D. equal those of the leader.

Economics

If the cost of a market basket is $200 in 2006 and $230 in 2007, the price index for 2007 using 2006 as the base year is

A. 1.00. B. 1.15. C. 1.30. D. 2.00.

Economics

Suppose that 130 people are unemployed for part of a given year; 120 are unemployed for 1 month, and 10 are unemployed throughout the year. What percentage of total months of unemployment is attributable to the long-term unemployed?

A. 7.7 per cent B. 10 per cent C. 13 per cent D. 50 per cent

Economics