GDP handles household production by
A) including it in real GDP but not in nominal GDP because there are no prices paid for the work.
B) estimating a dollar value of the goods purchased to do housework.
C) ignoring it.
D) estimating a dollar value of the services provided.
E) including it in exactly the same way that all other production is included.

Question

Quizplus · Accepted Answer

GDP generally ignores household production because it involves no observable market transaction, making it difficult to measure in monetary terms.

GDP Handles Household Production by