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Which activity increases welfare but is not included in GDP?

Answer and explanation

Correct answer: Care of children by a mother at home

GDP counts market-valued final goods and services. Unpaid household work, such as a mother caring for children at home, can create real welfare and save families from purchasing care, but it normally has no recorded market transaction. Therefore option B is correct. Factory production, shop sales and a lawyer’s paid service are market activities whose final value is recorded in GDP.

Related tags

Unpaid ServicesGdpWelfareHousehold WorkGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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