Question

How would you treat the following item in estimating a country’s national product?

Services of housewives

Answer 1

The services of housewives are not included in national product estimation because they are non-market activities. These services are provided within the household without any monetary payment and do not involve market transactions. National income accounts only for economic activities that have a market value and involve financial exchanges. Although housewives significantly contribute to family welfare and societal well-being, their unpaid work lacks a measurable market price and is therefore excluded from the calculation of the country’s national product.