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Which of the following is excluded from GDP but can increase economic welfare?

Answer and explanation

Correct answer: Unpaid elderly care by volunteers

GDP mainly measures market-valued final goods and services. Unpaid voluntary elderly care creates real benefits and can improve welfare, but because no market payment is made, it is generally not recorded in conventional GDP. Option D is correct. A new car sale and paid teaching are market transactions, while government hospital services are generally included through the cost or value of public production.

Related tags

Voluntary WorkUnpaid CareGdp ExclusionNon-Market ServicesGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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