Question

Explain the concept of non monetary exchanges as limitation of concept of real GDP

Answer 1

Answer:

Explain the concept of non monetary exchanges as limitation of concept of real GDP

Answer 2

Non-monetary exchanges are not considered for the estimation of domestic income. It is difficult to ascertain their market value and not rendered for the purpose of earning income. Though these services are rendered for development of a child and welfare of the family, it is not included in the gross national product.