Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Which of the following statements show the link between unpaid services and national income?

• A. CSO can set any value for unpaid services to calculate national income
• B. Unpaid services falls outside the nation income accounting
• C. Certain unpaid services have a standardised price, which is taken into account when calculating national income
• D. Valuing unpaid services to calculate nation income is a challenging task

Answer 1

Answer: (B), (D)

Valuing unpaid services to calculate nation income is a challenging task

The practical difficulties in measuring the monetary value of unpaid services, such as help from family, friends and relatives have caused problems. This poses a considerable challenge to measuring national income.
People's unpaid work for themselves and their families is not traded in the market, so there is no trade to track.