A Valid Criticism of the Decision Not to Include Non-Remunerated

question 27

Multiple Choice

A valid criticism of the decision not to include non-remunerated housework in GDP calculations is

• A)it would decrease the employment rate for domestic work.
• B)the difficulty in measuring quality and quantity.
• C)it is not a product or service.
• D)it will understate the value of production in the economy.

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Definitions:

Allocated Efficiently

Refers to the optimal distribution of resources and goods in a way that maximizes the welfare or utility of consumers.

External Costs

Expenses that a business or economic activity imposes on unrelated third parties or the environment, which are not reflected in market prices.

External Benefits

External Benefits are positive effects of a production or consumption activity on third parties who did not directly participate in the economic transaction.

Living in Poverty

The condition of having insufficient resources or income to meet basic life needs.