The normal measurement of GDP underestimates the total output in an economy because it excludes
A) pollution.
B) social justice.
C) non-market production.
D) leisure.
E) political freedoms.

Question

Quizplus · Accepted Answer

Non-market production, such as household work, DIY projects, and unpaid care-giving, are not counted in the GDP calculation. These activities contribute to the economy's output but are not captured by the traditional GDP measurement. The exclusion of non-market production leads to an underestimation of the total output in an economy. Therefore, option C is the best answer. Options A, B, D, and E are not directly related to the measurement of GDP.

The Normal Measurement of GDP Underestimates the Total Output in an Economy