Household production,such as baking bread at home,is not included in GDP because it

Question

Quizplus · Accepted Answer

Household production, such as baking bread at home, is not included in GDP because it does not involve a market transaction. GDP only factors in the value of goods and services that are exchanged through a market, such as when an individual buys bread from a bakery. If someone bakes bread at home, even if it has the same quality as store-bought bread, it does not contribute to GDP because there was no exchange of money for the bread.

Household Production,such as Baking Bread at Home,is Not Included in GDP