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Why is the unpaid service of a family member doing household work generally not added to GDP?

Answer and explanation

Correct answer: Because no market transaction is recorded

GDP is mainly based on market-valued production recorded through economic transactions. An unpaid household service may be useful and economically important, but it normally has no observed market price or recorded sale, so national accounts generally exclude it. Therefore option B is correct. It is not excluded because it is useless, rural, or imported; those statements confuse the accounting criterion.

Related tags

Unpaid Household WorkNon-Market ServicesGdp MeasurementGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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