Question

Scott is a woodworker and charges​ $125 an hour for his time manufacturing customminusmade wood products. For his​ wife's birthday, he designs and creates an intricate birdseye maple jewelry box that takes him 15 hours to complete. By how much and in what direction does GDP change as a result of his​ efforts

Answer 1

GDP is not affected

Explanation:

Provided that,

Scott charges $125 for an hour for his time for manufacturing custom made wood products.

As he prepares a gift for his wife, he spends 15 hours on such preparation.

If such time was used by him in his commercial activities then he would have generated revenue of $125
`*` 15 = $1,875. Further the amount is just related to a single individual, where as economy relates to entire country.

Now, when we talk about economy this amount of $1,875 for a country like US will not affect at any material level to the GDP. As this amount is so immaterial, there will be no impact on GDP.

Thus GDP will not be affected.