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Why is the wage paid to a domestic worker included in GDP?

Answer and explanation

Correct answer: Because it is a paid productive service

GDP measures the market value of final goods and services produced within a country during a period. A domestic worker supplies a service for which the household makes a market payment, so that service has measurable economic value and is included. It is not foreign aid, a capital gain, or a transfer payment. Unpaid household work is generally excluded because it has no recorded market transaction.

Related tags

Domestic WorkerPaid ServiceGdp InclusionGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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