If I hire a lawn service to mow my grass,the monies I pay the service are included in the GDP,whereas if I mow my own lawn,the value of this service is not included in the GDP.This fact represents a criticism of the GDP's focus on:
A) avoidance of double counting.
B) market-produced goods and services.
C) domestic versus national product.
D) final values of goods and services.

Question

Quizplus · Accepted Answer

The GDP focuses on market-produced goods and services, which means that only the value of goods and services produced and sold in the market are included. When an individual mows their own lawn, it is not a market transaction and therefore not included in the GDP. This represents a limitation of the GDP as it may not fully capture all economic activity, particularly non-market activities such as household production.

If I Hire a Lawn Service to Mow My Grass,the