Which of the following activities is excluded from GDP, causing GDP to understate a nation's well- being?
A) the services of used-car dealers
B) the child-care services provided by stay-at-home parents
C) the construction of new houses
D) government expenditures on military equipment

Question

Quizplus · Accepted Answer

The child-care services provided by stay-at-home parents are not included in GDP as they are considered non-market activities that are not sold in the marketplace. This causes GDP to understate the economic contribution of parents who choose to stay at home and provide childcare for their children.

Which of the Following Activities Is Excluded from GDP, Causing