Asked by aditya gauri on May 19, 2024
Verified
An increase in household production will increase gross domestic product (GDP).
Household Production
The creation of goods and services by individuals or families within a home environment, not for formal market exchange.
Gross Domestic Product (GDP)
The complete market or financial worth of every finished good and service made within a nation's frontiers in a certain timeframe.
- Critically appraise the insufficiencies of Gross Domestic Product (GDP) as a metric for evaluating social welfare and economic progress.
Verified Answer
LM
Louis MillsMay 23, 2024
Final Answer :
False
Explanation :
Household production is not included in the calculation of GDP because it does not involve a market transaction. GDP only includes goods and services produced for pay or profit.
Learning Objectives
- Critically appraise the insufficiencies of Gross Domestic Product (GDP) as a metric for evaluating social welfare and economic progress.
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