Which of the definitions below best defines Gross Domestic Product?
A) Gross Domestic Product is the market value of all final goods and services sold within a country in a year.
B) Gross Domestic Product is the market value of all final goods and services produced within a country in a year.
C) Gross Domestic Product is the market value of all goods and services produced within a country in a year.
D) Gross Domestic Product is the market value of all final goods and services produced by a country's permanent residents, wherever located, in a year.

Question

Quizplus · Accepted Answer

Gross Domestic Product (GDP) is the measure of a country's economic output. It represents the market value of all final goods and services produced within a country in a given period of time, typically a year. Option B best defines GDP as it specifies that the goods and services are produced within the country, while also including only the final goods and services, rather than intermediate goods which are used in the production of final goods. Option A is incorrect as it includes goods and services sold, whereas GDP is based on production. Option C is incorrect as it does not specify that only final goods and services are included. Option D is incorrect as it includes production by a country's permanent residents wherever located, while GDP only includes production within a country's geographical borders.

Which of the Definitions Below Best Defines Gross Domestic Product