Gross domestic product (GDP) is equal to which of the following?

• A. The total value of all intermediate goods produced within a country in a given period of time
• B. The sum of all government expenditures and net exports
• C. The market value of all final goods and services produced within a country in a given period of time
• D. The market value of all goods and services produced by a country's citizens, regardless of location

Answer: (C)

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. Recognize that GDP includes only final goods and services to avoid double counting, which means intermediate goods are excluded because their value is already embedded in the final products.
3. Note that GDP accounts for production within the country regardless of who produces it, so it includes goods and services produced by foreign entities operating domestically but excludes production by the country's citizens abroad.
4. Distinguish GDP from other related concepts such as Gross National Product (GNP), which measures the market value of goods and services produced by a country's citizens regardless of location.
5. Conclude that the correct definition of GDP is: the market value of all final goods and services produced within a country in a given period of time.