Why Might a Homemaker Be Upset with the Way Gross

question 174

Multiple Choice

Why might a homemaker be upset with the way Gross Domestic Product (GDP) is calculated?

• A) Because the government always underestimates the dollar value of the household services produced at home and outside the market that are included in the Gross Domestic Product (GDP) statistic
• B) Because household services produced at home and outside the market are only included in Gross Domestic Product (GDP) if the homemaker is a man
• C) Because household services produced at home and outside the market that are sold to others are not included in Gross Domestic Product (GDP)
• D) Because none of the household services produced for at home and outside the market are included in Gross Domestic Product (GDP) even though they contribute greatly to the welfare of the family

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Definitions:

Excessive Control

A situation where the level of regulation or direction exceeds what is considered normal or necessary, often leading to inefficiencies or reduced autonomy.

Industry

A sector of the economy that produces goods or services, often categorized by the type of activity involved, such as manufacturing, agriculture, or services.

Public Good

A good or service that is characterized by nonrivalry and nonexcludability. These characteristics typically imply that no private firm can break even when attempting to provide such products. As a result, they are often provided by governments, who pay for them using general tax revenues.

Government

The government refers to the system or group of people governing an organized community, often a state, setting and enforcing laws and policies.