Question

Which of the following best describes Gross Domestic Product?

[0.8 marks]

• A. Value of goods and services under production in a country in a particular year.
• B. Number of goods and services produced in all the three sectors of a country in a particular year.
• C. Value of all final goods and services produced within a country in a particular year.
• D. Value of intermediate and finished goods produced within a country in a particular year.

Answer 1

The correct option is C Value of all final goods and services produced within a country in a particular year.

Gross Domestic Product (GDP) is the value of all the final goods and services produced within a country in a particular year. The sum of production in all three sectors of an economy also gives us its GDP and indicates how big an economy is.