Tom Atoe grows tomatoes for home consumption.This activity is:
A)excluded from GDP in order to avoid double counting.
B)excluded from GDP because an intermediate good is involved.
C)productive but is excluded from GDP because no market transaction occurs.
D)included in GDP because it reflects production.

Question

Quizplus · Accepted Answer

The activity of growing tomatoes for home consumption is productive but it is excluded from GDP because no market transaction occurs. GDP only includes economic activities that involve market transactions.

Tom Atoe Grows Tomatoes for Home Consumption