Why is a volunteer's free service generally not added to GDP?
Answer and explanation
Correct answer: Because no market payment is recorded for it
GDP primarily measures the market value of final goods and services produced within an economy during a period. Volunteer work may create real social benefits, but because it is supplied without a market payment, its value is generally not recorded in GDP. Therefore option B is correct. It is not excluded because it harms society, occurs only abroad or is an import.
Frequently asked questions
What is the correct answer to this question?
Because no market payment is recorded for it
Why is this the correct answer?
GDP primarily measures the market value of final goods and services produced within an economy during a period. Volunteer work may create real social benefits, but because it is supplied without a market payment, its value is generally not recorded in GDP. Therefore option B is correct. It is not excluded because it harms society, occurs only abroad or is an import.
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.
