Which of the following is a market service included in GDP?
Answer and explanation
Correct answer: Paid service of a private hospital
GDP records the market value of currently produced final goods and services exchanged for payment. A private hospital provides a medical service for which a fee is charged, so its value is recorded in national output; therefore option B is correct. Unpaid household care, voluntary help, and cleaning one’s own home usually have no market transaction and are not included.
Frequently asked questions
What is the correct answer to this question?
Paid service of a private hospital
Why is this the correct answer?
GDP records the market value of currently produced final goods and services exchanged for payment. A private hospital provides a medical service for which a fee is charged, so its value is recorded in national output; therefore option B is correct. Unpaid household care, voluntary help, and cleaning one’s own home usually have no market transaction and are not included.
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.
