Question

Gross domestic product is a measure of both a. the market value of a nation's capital assets (physical capital) and the costs that were incurred producing those assets. b. the expenditures on and sales revenues derived from all goods and services exchanged during a period. c. the market value of the output produced during a period and the cost of producing that output. d. the asset holdings of people and the happiness that they derived from the ownership of those assets.

Answer 1

The correct answer is letter C.

Explanation: The Gross Domestic Product (GDP) measures economic value of a country. They make the accounting of all the services, goods and prices that the country have had in a while. It is the total economic activity.

It is calculated in that way:

GDP = C + I + G + (X – M)