Gdp economics?

Question

would a mechanic fixing a car be included in gdp?

Answer 1

i would say definately, every business is included because when you file taxes and such the government can check and see, the u.s. has dropped from the highest gdp per capita from first to like 8th or 9th in the last 5 years.

Answer 2

Of course it would

The GDP is the market value of all the output produced in a country in one year, and the GDP is concerned with where the output is produced rather than who produced it, so even if the mechanic was say indian he would be included in the GDP of the US.

To make it easier, you can think of it as the sum of all income earned by wages,corporate profits and interest, or as the production of all individuals and companies in the economy in a given year minus the cost of their inputs.

Answer 3

Yes, the income of a mechanic fixing a car would be included in gdp because the service provided by the mechanic adds value to the operation of the car to the owner of the car. That is why the mechanic gets paid.

Answer 4

yes unless it's his own car.

Answer 5

Services, including repair services, are part of GDP. Services are a huge part of our economy. This output would be included under personal consumption (C). Now if the mechanic was working off the books, or was bartering with you to avoid paying taxes, the transaction would not show up.