When Someone Stops Mowing His Own Lawn and Hires a Lawn

Multiple Choice

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) Nothing; the same lawns are being mowed, so production has not changed.
B) It rises because GDP includes the value of the additional leisure time that the person gets by hiring someone else.
C) It rises because when the person mows his own lawn it is non-market production that is not counted.
D) It falls because hiring a lawn service reduced the amount of other goods that the person could purchase.