Why is the value of leisure generally not added to GDP?
Answer and explanation
Correct answer: Because its market value is not easily measured
GDP measures the market value of currently produced final goods and services. Leisure can improve happiness, health, and quality of life, but it is usually not bought and sold in a market, so it has no reliable recorded price for national accounting. Therefore option B is correct. Options A, C, and D are incorrect because leisure is not inherently harmful, is enjoyed by people of all ages, and is not an export.
Frequently asked questions
What is the correct answer to this question?
Because its market value is not easily measured
Why is this the correct answer?
GDP measures the market value of currently produced final goods and services. Leisure can improve happiness, health, and quality of life, but it is usually not bought and sold in a market, so it has no reliable recorded price for national accounting. Therefore option B is correct. Options A, C, and D are incorrect because leisure is not inherently harmful, is enjoyed by people of all ages, and is not an export.
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.
