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Which limitation is shown by not including unpaid household work in GDP?

Answer and explanation

Correct answer: GDP does not fully measure non-market productive services

Unpaid household activities such as cooking, cleaning, childcare and caring for elderly people create useful services, but they usually do not involve a recorded market transaction. Therefore, their value is generally excluded from measured GDP. This shows that GDP may underestimate actual productive activity and does not completely represent welfare or living standards.

Related tags

GdpUnpaid Household WorkGdp LimitationsWelfareNational Income And Related AggregatesGdp And WelfareEconomicsClass 11 Mcq

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