medium · GMAT Verbal
Passage: Feminist economists have challenged traditional measures of Gross Domestic Product (GDP) on the grounds that they systematically undervalue unpaid domestic labor and care work. Traditional macroeconomics, influenced by Adam Smith's focus on market exchange, defines 'productive' activity as that which results in a traded good or service. Consequently, the labor required to maintain households and raise children, predominantly performed by women, is treated as 'non-productive' and excluded from national accounts. Critics argue that this exclusion is not merely a statistical oversight but a methodological bias that obscures the economic interdependence between the market and the household. They propose a 'satellite account' system that would assign a monetary value to unpaid work based on the cost of hiring a market replacement. Such a system, proponents argue, would provide a more holistic view of national welfare and lead to more equitable social policies. Opponents, however, contend that the lack of market prices for domestic labor makes any valuation arbitrary and could distort economic signaling.
Which of the following, if true, would most weaken the argument for creating 'satellite accounts' for unpaid labor?
- Market replacement costs for identical domestic tasks vary so widely across comparable regions that no stable valuation rule produces consistent national-account estimates.
- Many surveyed women report that they personally find unpaid care work far more fulfilling than market employment, so national accounts need not assign it any monetary value.
- Statistical data shows that the total amount of time men spend each week on domestic labor has risen over the last decade, removing any remaining need to value unpaid work.
- National GDP figures are released to the public on a quarterly rather than an annual schedule.
- Market replacements for many domestic tasks, like professional cleaning, have grown more affordable in recent years.
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