Dale is a stay-at-home-parent whose typical day consists of getting the kids ready for school, doing the laundry, cooking three meals, and cleaning the house. How are Dale's home activities counted in GDP?
A)They are counted by subtracting Dale's opportunity cost in terms of lost income.
B)They are counted at market value.
C)They are counted by assigning a value that is equivalent to what it would have taken to pay a housekeeper to perform the same tasks.
D)They are not counted.

Question

Quizplus · Accepted Answer

Dale's home activities are not counted in GDP since they are not performed for pay in the market. GDP only includes market transactions where goods and services are exchanged for money. Dale's activities are not included in GDP, even though they have value to his family and contribute to the well-being of his household.

Dale Is a Stay-At-Home-Parent Whose Typical Day Consists of Getting