The increase in the proportion of women in the labor force causes GDP to _____ the growth in economic well-being because ___.

Question

Quizplus · Accepted Answer

The increase in the proportion of women in the labor force causes GDP to overstate the growth in economic well-being because some of the services that women formerly provided in the home (such as childcare, cooking, and cleaning) are now purchased in the market, thus counted in GDP, even though these services were always contributing to economic well-being but were not previously monetized or counted in GDP calculations.

The Increase in the Proportion of Women in the Labor