Question:
Which of the following statements defines the Gross Domestic Product?
(1) The total quantity of output produced by an economy in a given time period.
(2) The total market value of all output produced by an economy in a given time period.
(3) The total market value of all final goods and services produced by an economy in a given time period.
(4) The total value of all final goods and services sold in the domestic market in a given time period.
(5) The total market value of all final goods and services produced by an economy minus the market value of final goods and services exported to other countries in a given time period.
Correct Answer:
(3)
Answer Explanation:
Gross Domestic Product (GDP) is strictly defined as the total monetary (market) value of all final goods and services produced within a country’s geographic borders over a specific period of time (usually a year). It excludes intermediate goods to avoid double counting.
Topic: National Income Year: 2018
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