GDP measures

Question

GDP measures

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, typically a year. It includes all factors of production such as labor, capital, etc. However, it only includes final goods and services, meaning those that are produced for consumption and not for further production. Option A is incorrect because it does not specify that it only includes final goods and services. Option C is incorrect because it only includes goods and services produced by companies headquartered in a given country, not all factors of production. Option D is incorrect because GDP measures the value of goods and services produced, not just sold.

GDP Measures