The gross domestic product of an economy is defined as the:
A) total value of all industrial goods produced and sold during a given period.
B) total value of all final goods and services produced during a given period.
C) value of all noneconomic transactions made among consumers during a particular period.
D) value of all non-monetary transactions between consumers and firms during a given period.

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) is the total value of all final goods and services produced within a country's borders during a specific time period, usually a year. It excludes intermediate goods and services because they are already included in the value of final goods and services. It also includes goods and services produced by foreign-owned firms located within the country, but excludes goods and services produced by domestic firms located abroad. Choices A, C, and D are incorrect because they do not match the definition of GDP.

The Gross Domestic Product of an Economy Is Defined as The