If a family replaces self-provided child care with paid child-care services, what measurement issue arises for GDP and welfare?

Correct answer: GDP rises even if the total care service remains the same

Unpaid care performed within a household is generally excluded from measured market production, while purchased child care is included in GDP at its market value. If the paid service provides the same amount and quality of care, measured GDP rises because the activity has become market production. The care received may be unchanged, so the rise in GDP does not by itself show that welfare has increased.