Below are some examples of people participating in activities that may or may not affect GDP. For each, indicate whether the activity affects GDP positively, negatively, or not at all.

Question

(positive, negative, no effect) Mary cleans her house.

(positive, negative, no effect)  Mary hires someone to clean her house.

(positive, negative, no effect)  Jim sells cocaine on the black market and earns $30,000 in a year.

(positive, negative, no effect)  Rachel buys $5,000 worth of IBM stock from Steve.

(positive, negative, no effect)  A burglar steals your stereo.

(positive, negative, no effect)  You buy a new stereo to replace the one that was stolen.

Answer 1

Mary cleans her house - no effect - Why? - Not in the market economy.

Mary hires someone to clean her house - Positive - Why? - In the market economy.

Jim sells cocaine - no effect - Why? - Not in the market economy.

Rachel buys $5k stock - no effect - Why? - Nothing Produced.

A burglar steal a stereo - no effect - Why? - Not in the market economy.

You buy a new stereo - Positive - Why? - In the market economy.