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Why is leisure time not included in GDP, even though it may increase welfare?

Answer and explanation

Correct answer: Because leisure is not a produced market good or service valued in GDP

Leisure can support health and well-being, but it is not itself a produced market good or service with a value recorded in GDP. GDP measures the value of production, so unpaid leisure is generally omitted. This is one reason GDP is not a complete measure of welfare.

Related tags

GdpWelfareLeisureGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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