Because government services are not sold in markets,
A)they are excluded from measurements of GDP.
B)the government tries to estimate their market value and uses this to measure the government's contribution to GDP.
C)they are valued at their cost of production.
D)taxes are used to value their contribution.

Question

Quizplus · Accepted Answer

Government services are valued at their cost of production when measuring GDP because they are not sold in markets and thus do not have a market price.

Because Government Services Are Not Sold in Markets