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Which is a non-market activity that can increase welfare?

Answer and explanation

Correct answer: Unpaid childcare by a mother

A non-market activity provides value without being bought or sold through a recorded market transaction. Unpaid childcare can protect a child’s health, safety and development and therefore raises household welfare, although its value is usually not counted directly in GDP. Option C is correct. The other activities involve paid market transactions and are recorded as production or services.

Related tags

Non-Market ActivityUnpaid ChildcareWelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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