Question

Household​ production, such as baking bread at​ home, is not included in GDP because it

Answer 1

Answer:

The correct answer is option D.

Explanation:

GDP can be defined as a measure to calculate the economic growth of a nation. It includes the production of final goods and services in the geographical boundaries of a nation.

It does not include home production of goods and services, this is because such goods and services do not involve a market transaction. For instance, if a person is baking bread at home he/she is not being paid for it by anyone.