Which of the following is generally not included in GDP?
Answer and explanation
Correct answer: Unpaid household work by a family member
GDP records the market value of final goods and services produced during a period. A new car, a teacher’s paid service, and newly produced cloth normally involve observable market transactions and can be valued in money. Unpaid household work may be useful and welfare-enhancing, but it usually has no market transaction or recorded price, so it is generally excluded from measured GDP. Hence option D is correct.
Frequently asked questions
What is the correct answer to this question?
Unpaid household work by a family member
Why is this the correct answer?
GDP records the market value of final goods and services produced during a period. A new car, a teacher’s paid service, and newly produced cloth normally involve observable market transactions and can be valued in money. Unpaid household work may be useful and welfare-enhancing, but it usually has no market transaction or recorded price, so it is generally excluded from measured GDP. Hence option D is correct.
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.
