Childcare Provided by a Nanny Is Not Included in the GDP

question 30

True/False

Childcare provided by a nanny is not included in the GDP if the parents pay the nanny "under the table."

---

Definitions:

Bargaining Costs

Costs incurred during the process of reaching an agreement between two parties, typically including time, effort, and other resources spent in negotiation.

Property Rights

Legal rules stating what people or firms may do with their property.

Coase Theorem

A principle asserting that if property rights exist, and are transferable, externalities can be fully corrected through bargaining without government intervention.

Pollution Damage

The detrimental effects on the environment, human health, or property caused by pollutants and waste emissions from industrial, agricultural, or residential sources.