Real GDP is not a perfect measure of economic well being because it excludes the value of all of the following EXCEPT:

Question

Quizplus · Accepted Answer

Real GDP includes the value of all goods and services produced within the market economy. It does not, however, include nonmarket economic activity such as household production, nor does it include the value of goods and services produced in the underground economy (illegal activities, unreported income, etc.). It also does not take into account leisure time, which can contribute to overall well-being. Therefore, the only answer choice that is excluded from real GDP is nonmarket economic activity.

Real GDP Is Not a Perfect Measure of Economic Well