Question

GDP measures the:

		a) money circulating through an economy during a year.
		b) value of the final goods and services produced within the borders of a country during a given period.
		c) value of the final goods and services produced by the citizens of a country regardless of their location during a given period.
		d) amount of government spending undertaken during a given period.

Answer 1

Sol : (b)

GDP measures the value of the final goods and services produced within the borders of a country during a given period (regardless of if its citizens or foreigners produced it).

At the point when financial specialists and economists talk about the "size" of the economy, they are alluding to GDP. It works as a complete scorecard of the nation's economic wellbeing. It is the most well known strategy for estimating an economy's output. At the point when individuals state one economy is bigger than another or that an economy is growing or contracting, for the most part they're alluding to GDP figures.

GDP is significant in light of the fact that it gives a bird's-eye perspective on how an economy is getting along. On the off chance that GDP accelerates, it very well may be an indication that beneficial things are going on or are going to occur in various regions — individuals are getting more job opportunities or better salary, for instance, or businesses feeling assured to invest more. It is anything but a total image of a national economy using any and all means, yet it's a decent beginning at a quick summary.