In a country where many families make their own clothes,GDP will be understated because the clothes making represents
A)economic bads.
B)leisure.
C)the underground economy.
D)nonmarket production.

Question

Quizplus · Accepted Answer

Making clothes at home represents nonmarket production, which refers to the production of goods and services that are not sold in the market and are not included in the calculation of GDP. As a result, GDP will be understated because the value of the goods produced for personal use is not factored into the calculation.  The other options listed are not applicable in this scenario.

In a Country Where Many Families Make Their Own Clothes,GDP