Gross domestic product is a measure of both
A) the market value of a nation's capital assets (physical capital) and the costs that were incurred producing those assets.
B) the expenditures on and sales revenues derived from all goods and services exchanged during a period.
C) the market value of the output produced during a period and the cost of producing that output.
D) the asset holdings of people and the happiness that they derived from the ownership of those assets.

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) is a measure of the market value of all final goods and services produced within a country in a given period of time (usually a year). It includes the cost of producing that output, such as wages, rent, and materials, but it is primarily a measure of the value of the output itself. Option A is incorrect because it refers to the production of physical capital, which is included in GDP as an investment, but not as a measure of output. Option B is incorrect because it is too narrow - GDP includes not just sales revenues and expenditures, but also non-market production and net exports. Option D is incorrect because GDP does not measure asset holdings or happiness.

Gross Domestic Product Is a Measure of Both