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The house already exists and is not contributing anything to the economy. Therefore it is not productive.
by robjan 11y ago
The house already exists and is not contributing anything to the economy. Therefore it is not productive.
- jameshart 11y agoA house provides shelter to an economically productive household. Through its location it might provide access to amenities such as schools or transport links. It has value because people want to live in it and they are willing to give up some of the economic gain they believe they will get through living in that house in order to get those benefits.
- robjan 11y agoThat explains why people attach value to the house, not why it's productive.