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What is the likely effect if a paid household cleaning service is replaced by unpaid work by a family member?

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Answer and explanation

Correct answer: मापा गया सकल घरेलू उत्पाद घट सकता है जबकि सेवा जारी रहती है

National income accounting generally records market transactions with observable monetary values, while unpaid household production is usually outside measured GDP. Replacing a paid cleaner with a family member can therefore reduce recorded GDP even though the cleaning service continues and household welfare may change little. Thus option A is correct; the other choices claim impossible or unnecessarily absolute effects.

Tags

unpaid household workGDP measurementnon-market productionGDP and WelfareNational Income and Related AggregatesEconomicsClass 11 MCQ

Frequently asked questions

What is the correct answer to this question?

मापा गया सकल घरेलू उत्पाद घट सकता है जबकि सेवा जारी रहती है

Why is this the correct answer?

National income accounting generally records market transactions with observable monetary values, while unpaid household production is usually outside measured GDP. Replacing a paid cleaner with a family member can therefore reduce recorded GDP even though the cleaning service continues and household welfare may change little. Thus option A is correct; the other choices claim impossible or unnecessarily absolute effects.

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.

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