Question

A major criticism of per capita income is that it doesn't differentiate between different sources of income. Which of the following is a common source of non-monetary income not captured by this metric?

• A. The value of unpaid household labor
• B. Government subsidies for essential goods
• C. Profits from illegal activities
• D. Interest earned on savings accounts

Answer 1

Answer:

A. The value of unpaid household labor

• Per capita income focuses on earned income and does not capture the value of goods and services produced within a household, such as cleaning or cooking for one's family.