How Does the Average Amount of Nonmarket Production Affect Living

question 14

Multiple Choice

How does the average amount of nonmarket production affect living standards?

• A) It results in goods and services for consumption that are not included in GDP. Living standards are higher than what is represented by GDP per capita.
• B) It results in goods and services for consumption that increase GDP. GDP is higher than it would be without the nonmarket production.
• C) It raises the prices of goods and services due to increased demand for them. This means that GDP and living standards appear higher even though the quantity of production is unchanged.
• D) It has no impact on living standards because it is outside of the markets that determine how much people have to consume.

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