Question

Sam, an American citizen prepares meals for his family at home. Ellen, a Canadian citizen, commutes to the U.S to help prepare meals at a restaurant in Idaho. Whose value of services preparing meals is included in U.S. GDP? Select one: O a. Sam's but not Ellen's O b. Neither Sam's nor Ellen's O c. Ellen's but not Sam's d. Sam's and Ellen's

Answer 1

Ellen's services are included since the services are produced in the U.S and Sam's services have no economic value and, hence, not included in GDP. GDP is the value of final goods and services produced within a country's borders in a given period of time.

Answer is Ellen's but not Sam's.