Why is unpaid household service performed at home generally not added to GDP?
Answer and explanation
Correct answer: Because its market value is difficult to measure reliably
Unpaid household activities such as cooking, cleaning, or caring for family members may provide real economic benefits, but they usually have no observed market price or recorded payment. Assigning a reliable and comparable monetary value is difficult, so national accounts generally exclude them from measured GDP. Paid domestic services are treated differently.
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What is the correct answer to this question?
Because its market value is difficult to measure reliably
Why is this the correct answer?
Unpaid household activities such as cooking, cleaning, or caring for family members may provide real economic benefits, but they usually have no observed market price or recorded payment. Assigning a reliable and comparable monetary value is difficult, so national accounts generally exclude them from measured GDP. Paid domestic services are treated differently.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
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