Which of the following statements regarding the gross domestic product is true?
A) It is useful in comparing the overall performances of different economies at the same time.
B) It measures aggregate income in an economy over a period of ten years.
C) It measures the value of all goods and services produced in the world during a given period.
D) It is a measure of an economy's price level during a particular year.
E) It is the difference between the value of all goods and services produced by the government and the value of those produced by the private sector.

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) is a measure of the value of all goods and services produced within a country's borders over a specific period, usually a year. It is commonly used to compare the overall performances of different economies at the same time. Option B is incorrect because GDP measures the value of goods and services produced in one year, not ten. Option C is incorrect because GDP measures the value of goods and services produced within a country's borders, not in the entire world. Option D is incorrect because GDP is a measure of the value of goods and services produced, not a measure of prices. Option E is incorrect because GDP measures the value of all goods and services produced by both the government and the private sector, not just one or the other.

Which of the Following Statements Regarding the Gross Domestic Product