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On what basis is the service of a government school teacher measured in NDP?

Answer and explanation

Correct answer: By production cost or compensation of the teacher

Government schooling is generally a non-market service because it is not sold at a normal market price to students. In national accounting, such services are valued by their cost of production, especially the compensation paid to employees such as teachers, along with relevant operating costs. Thus option B is correct. Fees, building value and examination results do not measure the current flow of teaching service.

Related tags

NdpGovernment-ServicesNon-Market-OutputValuationGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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