Definition
- Home production
- Home production is work done at home that is not sold in the marketplace, such as cooking your own breakfast, so GDP never counts it.
Example
Can you think of an example of home production?
A parent who cooks, cleans and looks after a toddler adds nothing to GDP. Pay a childminder and a cleaner to do the same work and GDP rises, though no more is being done.
Test yourself
Can you name the five things GDP leaves out or misses?