Nominal GDP is the market value of:

• A. all goods and services produced by citizens of a country, regardless of location, measured at current prices
• B. all final goods and services produced within a country in a given period, measured at current prices
• C. all final goods and services produced within a country in a given period, measured at constant prices
• D. all intermediate goods and services produced within a country in a given period, measured at current prices

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the definition of Nominal GDP. Nominal GDP measures the total market value of all final goods and services produced within a country during a specific period, using current prices (prices prevailing in the year the output is produced).
2. Step 2: Differentiate between 'final goods and services' and 'intermediate goods and services'. Nominal GDP includes only final goods and services to avoid double counting, as intermediate goods are used to produce final goods.
3. Step 3: Recognize the geographic scope. Nominal GDP accounts for production within the country's borders, regardless of the nationality of the producers. This means it includes all production inside the country, not production by citizens abroad.
4. Step 4: Distinguish between Nominal GDP and Real GDP. Nominal GDP uses current prices, while Real GDP uses constant prices to adjust for inflation. Since the problem specifies 'measured at current prices', it refers to Nominal GDP.
5. Step 5: Conclude that the correct description of Nominal GDP is: 'all final goods and services produced within a country in a given period, measured at current prices.'