If only market transactions are counted in GDP, which activity may generally be missed?
Answer and explanation
Correct answer: Unpaid care service at home
GDP records production that is supplied through markets or assigned a measurable economic value. Unpaid household activities, such as caring for children or elderly family members, usually have no market transaction and are therefore excluded from measured GDP. Market construction and exported production are normally recorded when produced.
Frequently asked questions
What is the correct answer to this question?
Unpaid care service at home
Why is this the correct answer?
GDP records production that is supplied through markets or assigned a measurable economic value. Unpaid household activities, such as caring for children or elderly family members, usually have no market transaction and are therefore excluded from measured GDP. Market construction and exported production are normally recorded when produced.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
