Gross domestic product equals the sum of
A) all income earned by domestic producers of goods and services minus indirect business taxes and depreciation during the year.
B) the purchases of final goods and services produced domestically during a year.
C) the amount received by firms for consumer goods and services.
D) incomes received by households minus the sale of factor services supplied domestically.

Question

Quizplus · Accepted Answer

GDP is defined as the total value of final goods and services produced within a country's borders in a given time period, usually a year. This means that it includes all purchases of final goods and services made by households, businesses, and governments in that country. Option A refers to gross national product (GNP), while Option C and D are incorrect because they do not consider all economic activities that contribute to GDP.

Gross Domestic Product Equals the Sum of