Practicing Success
The domestic services women perform at home are not paid for. Since money is not being used here and is not registered as part of economic activity, this results in : |
Over estimation of GDP Under estimation of GDP Exact estimation of GDP Economic estimation of GDP |
Under estimation of GDP |
The correct answer is option (2) : Under estimation of GDP These unpaid domestic services, often referred to as "unpaid work, " are not accounted for in the Gross Domestic Product (GDP) calculation. Since GDP measures the total economic output of a country, the exclusion of such activities leads to an underestimation of the actual economic activity occurring in the country. |