GDP is commonly used to measure economic activity, but it has important limitations. GDP does not account for which of the following?

• A. The total amount of government spending included in the expenditure approach to GDP
• B. The total market value of final goods and services produced within a country during a given period
• C. The value of unpaid household labor (such as cooking and childcare provided within the home)
• D. The level of the overall price index used to convert nominal GDP into real GDP

Answer: (C)