In non monetary exchanges which is a limitation of GDP and welfare, how does services of a housewife influence the economic welfare?
Dear student,
It must be remembered that non-monetary exchanges such as the services of housewives remain outside the domain of GDP. They influence economic welfare in the sense that because of non-inclusion of such transactions, the GDP remains underestimated, so cannot be regarded as a true index of economic welfare.
It must be remembered that non-monetary exchanges such as the services of housewives remain outside the domain of GDP. They influence economic welfare in the sense that because of non-inclusion of such transactions, the GDP remains underestimated, so cannot be regarded as a true index of economic welfare.