The gross domestic product (GDP) of the United States is defined as the:

• A. total market value of all final goods and services produced within the United States in a given period
• B. total market value of all intermediate and final goods produced within the United States in a given period
• C. total market value of all goods and services produced by U.S. citizens worldwide in a given period
• D. total market value of all final goods and services consumed within the United States in a given period

Answer: (A)

Verified step by step guidance

1. Understand the definition of Gross Domestic Product (GDP): GDP measures the total market value of all final goods and services produced within a country's borders during a specific time period.
2. Distinguish between 'final goods' and 'intermediate goods': Final goods are products purchased for final use, while intermediate goods are used as inputs to produce other goods. GDP includes only final goods to avoid double counting.
3. Recognize the geographic boundary of GDP: GDP accounts for production within the country's borders, regardless of the producer's nationality. This means it includes production by foreign firms operating domestically but excludes production by domestic firms abroad.
4. Compare GDP with Gross National Product (GNP): GNP measures the total market value of goods and services produced by a country's citizens worldwide, which differs from GDP's focus on location of production.
5. Eliminate options that focus on consumption or intermediate goods: GDP is about production, not just consumption, and excludes intermediate goods to prevent double counting.