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If the same meal is bought from a restaurant, what will happen in GDP?

Answer and explanation

Correct answer: It will be included in GDP as current market output

A restaurant meal involves a market purchase of food preparation and serving services, along with the relevant final good. Because the restaurant produces and sells this output during the current period, its value is recorded in GDP, subject to national-accounting rules and avoidance of double counting inputs. This contrasts with an unpaid household meal, which usually has no market transaction and is not recorded in measured GDP.

Related tags

EconomicsGdpRestaurant ServiceMarket OutputHousehold ProductionGdp And WelfareNational Income And Related AggregatesClass 11 Mcq

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