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The issue of a free online educational video made and provided freely is related to what limitation in GDP measurement?

Answer and explanation

Correct answer: Difficulty in valuing a free or non-market digital service

GDP attempts to measure the market value of final goods and services produced during a period. A freely created educational video may provide substantial economic and social benefit, but no market price or payment may be recorded for it. Consequently, its value can be omitted or understated in GDP. This illustrates the limitation of GDP in measuring non-market and freely available digital services, so option A is correct.

Related tags

Gdp And WelfareNon-Market ServicesDigital EconomyGdp LimitationsNational Income And Related AggregatesEconomicsClass 11 Mcq

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