Suppose the total value of all assets in the Country X is $10 trillion. In 2018, the total value of all final services produced in Country X was $150 billion, the total value of all final goods produced in Country X was $350 billion, and the total value of all final goods and services produced by Country X's firms in other countries was $100 billion. In this situation, Country X's Gross Domestic Product for 2018 was
A) $600 billion.
B) $510 billion.
C) $500 billion.
D) $10.5 trillion.

Question

Quizplus · Accepted Answer

GDP is the total value of all final goods and services produced within a country's borders in a given time period, usually a year. Therefore, the GDP of Country X would be the sum of the value of all final goods and services produced within Country X's borders in 2018, which is $150 billion (for final services) + $350 billion (for final goods) = $500 billion. The value of all assets in the country, which is $10 trillion, is not directly relevant to calculating the GDP. Similarly, the value of goods and services produced by Country X's firms in other countries is not relevant to the calculation of Country X's GDP.

Suppose the Total Value of All Assets in the Country