Which is a non-market activity that can increase welfare?
Answer and explanation
Correct answer: Unpaid childcare by a mother
A non-market activity provides value without being bought or sold through a recorded market transaction. Unpaid childcare can protect a child’s health, safety and development and therefore raises household welfare, although its value is usually not counted directly in GDP. Option C is correct. The other activities involve paid market transactions and are recorded as production or services.
Frequently asked questions
What is the correct answer to this question?
Unpaid childcare by a mother
Why is this the correct answer?
A non-market activity provides value without being bought or sold through a recorded market transaction. Unpaid childcare can protect a child’s health, safety and development and therefore raises household welfare, although its value is usually not counted directly in GDP. Option C is correct. The other activities involve paid market transactions and are recorded as production or services.
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.
