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. |