If you hire a lawn service to mow your grass, the money you pay for the service is included in the GDP, whereas if you mow your own lawn, the value of this service is not included in the GDP. This fact represents a criticism of the GDP's focus on
A) avoidance of double counting.
B) market-produced goods and services.
C) domestic versus national product.
D) final values of goods and services.

Question

Quizplus · Accepted Answer

The GDP's focus on market-produced goods and services means that only goods and services that are bought and sold in the market are included in the GDP. This leaves out non-market activities, such as mowing your own lawn, which do have value but are not captured in the GDP.

If You Hire a Lawn Service to Mow Your Grass