Multiple Choice
You have decided to live off of nature. You cut down an old dead tree and use the wood to make a small canoe for yourself. Then you fashion a fishing rod from some old wire and an old hook. You dig up worms to use as bait, and you catch two fish and cook them for your dinner. Based on all these activities, how much did GDP change?
A) GDP rises by the market value of the canoe, the fishing rod, and the fish.
B) GDP rises by the market value of the fish only.
C) GDP does not change.
D) GDP rises by the value of the canoe because it is a durable good.
Correct Answer:

Verified
Correct Answer:
Verified
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