Question

4) Gross Domestic Product (GDP) is defined as the market value of:

A) all goods and services sold during the year by domestic and foreign producers.

B) all final consumer goods produced during the year by domestic and foreign suppliers.

C) all intermediate goods produced during the year by domestic and foreign suppliers.

D) all final goods and services produced within the boundaries of an economy during the year by domestic and foreign-supplied resources.

Answer 1

The correct option is option D

Reason : GDP deals with final goods and services produced and not with intermediary goods or consumer goods and it takes into account the production of final goods and services within the boundaries of an economy and not its sales. Hence the definition given in option D is correct.