GDP is the total market value of:
A)all expenditures on natural resources, labor, and capital goods in an economy in a given year.
B)all expenditures on consumption, investment, and net exports in an economy in a given year.
C)all intermediate goods and services produced in an economy in a given year.
D)all final goods and services produced in an economy in a given year.

Question

Quizplus · Accepted Answer

GDP is the total market value of all final goods and services produced in an economy in a given year. It includes all goods and services that are sold to final consumers or used for investment purposes. Excluded from GDP are intermediate goods and services, which are used as inputs in the production process. Option A is incorrect because it includes natural resources, which are not considered in GDP. Option B is incorrect because it includes net exports, which are already included in the other components of GDP. Option C is incorrect because it only includes intermediate goods and services, which are not counted in GDP.

GDP Is the Total Market Value Of