Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Non-monetary value
B
Market transactions
C
Government expenditure
D
International trade
Understanding the Answer
Let's break down why this is correct
Answer
GDP, or Gross Domestic Product, measures the economic activity of a country by adding up the value of all goods and services produced. However, it does not account for household production, which includes all the valuable work done at home, like cooking, cleaning, and childcare. Household production is important because it contributes to well-being and quality of life but is often overlooked in economic measurements. For example, if a parent stays home to take care of their children instead of working for pay, their contributions are significant but not reflected in GDP. Therefore, just as GDP measures economic activity, household production represents the unpaid work that supports families and society, highlighting the limitations of solely relying on GDP for understanding a country’s overall well-being.
Detailed Explanation
Household production shows value that isn't counted in money. Other options are incorrect because Some might think household work is like market sales; People may confuse household production with government spending.
Key Concepts
GDP limitations
Household production
Economic welfare
Topic
GDP Limitations and Household Production
Difficulty
medium level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.