If the same meal is bought from a restaurant, what will happen in GDP?
Answer and explanation
Correct answer: It will be included in GDP as current market output
A restaurant meal involves a market purchase of food preparation and serving services, along with the relevant final good. Because the restaurant produces and sells this output during the current period, its value is recorded in GDP, subject to national-accounting rules and avoidance of double counting inputs. This contrasts with an unpaid household meal, which usually has no market transaction and is not recorded in measured GDP.
Frequently asked questions
What is the correct answer to this question?
It will be included in GDP as current market output
Why is this the correct answer?
A restaurant meal involves a market purchase of food preparation and serving services, along with the relevant final good. Because the restaurant produces and sells this output during the current period, its value is recorded in GDP, subject to national-accounting rules and avoidance of double counting inputs. This contrasts with an unpaid household meal, which usually has no market transaction and is not recorded in measured GDP.
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.
