'Domestic/household services performed by a woman may not be considered as an economic activity'.

Question

a. 'Domestic/household services performed by a woman may not be considered as an economic activity'. 

Defend or refute the given statement with valid reason. 

b. 'Compensation to the victims of a cyclone is an example of a welfare measure taken by the government'. 

State with valid reason, should it be included/not included in the estimation of national income of India.

Answer 1

a. The given statement is defended; as it is difficult to measure the monetary value of the services performed by a woman (homemaker). Therefore, these activities may not be considered as an economic activity. 

b. Compensation given to the victims of a cyclone is an example of a social welfare measure taken by the government. However, it is not included in estimation of national income as it is a transfer payment which does not lead to corresponding flow of goods and services.