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When can grain grown by a farmer for self-consumption be included in GDP?

Answer and explanation

Correct answer: When its imputed monetary value is estimated

National accounting aims to include production even when the producer consumes the output personally, provided that its value can be estimated reliably. Grain grown for self-consumption is therefore assigned an imputed value, usually based on a relevant market price, and included as part of domestic production. Option A is correct. Exporting is unnecessary, destruction is irrelevant, and option D ignores the treatment of own-account production.

Related tags

Self-ConsumptionImputed ValueGdpGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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