In calculating GDP, household production is
A) included as part of consumption.
B) ignored because it is not a large amount.
C) not included because there is no market transaction.
D) included under employee compensation.

Question

Quizplus · Accepted Answer

Household production is not included in GDP calculations because it does not involve a market transaction. GDP measures the market value of all final goods and services produced within a country in a given period, and since household production does not involve a sale in the market, it is not counted.

In Calculating GDP, Household Production Is