The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production is its ________.
A)net national product (NNP)
B)gross national product (GNP)
C)gross domestic product (GDP)
D)gross national income (GNI)

Question

Quizplus · Accepted Answer

GDP measures the total value of goods and services produced within a country's geographic borders, regardless of whether the factors of production (such as labor or capital) are domestic or foreign. NNP and GNI take into account the nationality of the factors of production, while GNP includes the value of output produced by domestic individuals and businesses even if they are located outside the country's borders.

The Measure of the Value of Production That Occurs Within