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Which of the following is generally not included in GDP?

Answer and explanation

Correct answer: Unpaid household work by a family member

GDP records the market value of final goods and services produced during a period. A new car, a teacher’s paid service, and newly produced cloth normally involve observable market transactions and can be valued in money. Unpaid household work may be useful and welfare-enhancing, but it usually has no market transaction or recorded price, so it is generally excluded from measured GDP. Hence option D is correct.

Related tags

Gdp InclusionUnpaid Household WorkMarket ValueWelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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