Multiple choice

Which of the following statements do(es) not define GDP correctly?

  1. The final value of goods and services produced
  2. By the national income of a nation
  3. In a calendar year

  1. 1 and 2

  2. 2 and 3

  3. 1 and 3

  4. Only 3
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

GDP is the final value of all goods and services produced within the domestic territory of a country in a fiscal (and not a calendar) year. GDP includes the value of goods and services produced by foreign nationals on the domestic territory of a country. Gross national product includes the final value of goods and services produced by the nationals of a nation, even those working abroad.

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