Household production,such as baking bread at home,is not included in GDP because it
A)has better quality than the bread in the store.
B)has lower quality than the bread in the store.
C)does not add anything of value to GDP.
D)does not involve a market transaction.
E)is not really production.

Question

Quizplus · Accepted Answer

Household production is not included in GDP because it does not involve a market transaction. GDP is the total value of goods and services produced within a country's borders, and it only takes into account economic activities that involve market transactions, where money is exchanged for goods or services. Baking bread at home does not involve such a transaction, therefore, it is not included in GDP.

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