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Susan switches from going to Speedy Lube for an oil change to changing oil in he

ID: 1205642 • Letter: S

Question

Susan switches from going to Speedy Lube for an oil change to changing oil in her own car herself. Which of the following is correct? The value of changing the oil is A) included in the GDP whether Susan changes the oil or pays Speedy Lube to do it B) included in the GDP if Susan pays Speedy Lube to change it but not if she changes it herself C) included in the GDP if Susan changes it herself, but not if she pays Speedy Lube to change it D) not included in the GDP if neither Susan or Speedy Lube changes the oil

Explanation / Answer

A) Included in the GDP whether susan changes the oil or pays speedy lube to do it,

The reason here is simple, Susan does not produce oil herself, She buys oil from outside so certainly it is included in GDP, If she performs repairs on her car, it is not included in GDP