Why is unpaid household work not added to GDP?
Answer and explanation
Correct answer: Because it has no recorded market value
GDP is designed primarily to record final goods and services that have observable monetary values through market transactions. Unpaid cooking, cleaning, or caregiving may create real value and improve household welfare, but no sale or payment is recorded when the work is done within the household. Option B is correct. The work is not useless, foreign, or a capital good; it is a non-market service that is difficult to value consistently.
Frequently asked questions
What is the correct answer to this question?
Because it has no recorded market value
Why is this the correct answer?
GDP is designed primarily to record final goods and services that have observable monetary values through market transactions. Unpaid cooking, cleaning, or caregiving may create real value and improve household welfare, but no sale or payment is recorded when the work is done within the household. Option B is correct. The work is not useless, foreign, or a capital good; it is a non-market service that is difficult to value consistently.
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.
