Question

service rendered by housewives can be included in which of the category of income?

Answer 1

Housewife are not adding any profit to national income that's why they are doing a non market activity

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Answer 2

ANSWER:

Generally, while calculating the national income, the value of goods and services produced in a year is added, whereas the services rendered by a housewife are not added.

EXPLANATION:

   The commonly accepted practice of not considering all kinds of household activities when measuring national income is mainly due to difference between productive and non-productive activity. Productive activities include the utilisation of scarce resources for providing goods/services to fulfil human needs.

  However, not all activities which leads to human contentment is included for defining national income. As a universal rule, activities leading to producing marketable goods/services are added to the national income. Thus, the services rendered by a housewife are not included in the national income as it is not easy to accurately calculate the monetary value of the services rendered by a housewife.

  Moreover, assuming the broad socio-cultural structure of the nation, the significance of services by a housewife will not undergo any substantial changes over a defined time period such that for the purpose estimating the ups/down of material income it does not actually matters if housewives' services are included while "calculating the national income".