Why is House production included in GDP calculations whereas Home production is not?

Question

Question

Answer 1

Answer #1

There is a basic difference between home and house.

Home is made from the family and the close ones but house is made up of bricks Motors

The houses can be organisation, companies etc

So when companies produce final goods and services within the boundary of a country in a financial year then they are contributing towards the GDP

But home activities like washing clothes, cooking meals etc

They are doing for themselves and these activities cannot be traded in the Marketplace as final goods or service.

So it is not counted in the GDP

Answer 2

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