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Unformatted text preview: h instead of by check and that no
written record of the transaction be made.
In other words, no sales receipt is provided.
Again the person agrees. The payment for
these gardening services does not find its
way into GDP. A cash payment and no sales
receipt mean that no evidence shows that a
transaction was ever made. Some Nonmarket Goods and Services
Some goods and services are traded, but
not in an official market setting. Let’s say
that Eileen Montoya cooks, cleans, and takes 11 (286-309) EMC Chap 11 11/17/05 6:05 PM Page 291 care of all financial matters in the Montoya
household. She is not paid for doing these
activities; she does not receive a weekly
salary from the family. Because she is not
paid, the value of the work she performs is
not counted in GDP.
Jayne has three young boys,
ages 2 to 6. She cuts their hair every few
weeks. The “market value” of these haircuts
is not counted in GDP. However, if Jayne
took her boys to a barber, and he cut their
hair, what the barber charged for haircuts
would be cou...
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This document was uploaded on 01/16/2014.
- Winter '14