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My guess is it won't be because the unorganized sector isn't captured in GDP? but I read somewhere it will be. not sure if I am wrong or it was an error in the answer key.

please help

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    $\begingroup$ By the unorganized sector do you mean what Eurostat calls the informal economy - see here? $\endgroup$ Mar 4, 2020 at 12:31
  • $\begingroup$ Thank you, Adam. My sincere apologies for not clarifying before that I was talking in the context of the Indian economy. But thank you for this additional information. Have a great day! $\endgroup$ Mar 5, 2020 at 14:26

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If by ‘un-organized’ sector you mean gray and black market then these activities are not directly recorded in GDP. For example, if you pay 10e to a neighborhood kid to mow your lawn it won’t show on GDP as a spending. Although, you could say those activities still indirectly can increase GDP, as if then that kid goes and buys a lego at a store that would otherwise not be bought that purchase would raise GDP. But I don’t know what exactly you mean by unorganized if. If the spending/incomes in a sector are tracked by statistical office it will show up on GDP.

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    $\begingroup$ Thank you so much. your explanation lent me lot of clarity. Grateful for your insights. $\endgroup$ Mar 5, 2020 at 14:25
  • $\begingroup$ Doesn't that depend on whether the lego was imported? $\endgroup$
    – aris
    Dec 24, 2021 at 5:08
  • $\begingroup$ @aris it does as European I assume it’s not imported. Although now thinking about it even if it is imported it will be shown on national accounts just with negative sign $\endgroup$
    – 1muflon1
    Dec 24, 2021 at 8:32

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