nonmarketed economic activity

nonmarketed economic activity

any economic activity that, although usually legal, is not recorded in the NATIONAL INCOME ACCOUNTS of a nation. The labour and other inputs used in such activities are not paid a cash price for the work done and are therefore unrecorded. Examples of such activities are unpaid cooking and cleaning by housewives and unpaid charity work by voluntary organizations. Such omissions distort international comparisons of gross national income figures, not least because rural areas tend to be more self-sufficient while urbanized countries tend to purchase what they need rather than making it themselves (e.g. milk, bread, etc.). See BLACK ECONOMY.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005