Which of the following best identifies the value of all final goods and services produced in one year?

Which of the following best identifies the value of all final goods and services produced in one year?

• A. Net national product
• B. Gross domestic product
• C. Gross national product
• D. Disposable income

Answer: (B)

The value of all final goods and services produced in one year is best identified by Gross Domestic Product (GDP). GDP measures the total output of an economy, representing the market value of all finished goods and services within a country's borders during a specific time frame, typically one year. This economic indicator is crucial because it provides insights into the overall economic health and activity level of a nation. Focusing on the other options, Net National Product (NNP) adjusts Gross National Product (GNP) for depreciation but does not represent the total value of final goods and services produced, making it less comprehensive. Gross National Product includes the value of all final goods and services produced by a country's residents, regardless of where they are located, but it is not confined to the output within the national borders, which is the essence of GDP. Disposable income refers to the income available to households after taxes and does not encompass the production aspect of the economy at all. Therefore, GDP is the most accurate measure for identifying the value of goods and services produced in a year.

The value of all final goods and services produced in one year is best identified by Gross Domestic Product (GDP). GDP measures the total output of an economy, representing the market value of all finished goods and services within a country's borders during a specific time frame, typically one year. This economic indicator is crucial because it provides insights into the overall economic health and activity level of a nation.

Focusing on the other options, Net National Product (NNP) adjusts Gross National Product (GNP) for depreciation but does not represent the total value of final goods and services produced, making it less comprehensive. Gross National Product includes the value of all final goods and services produced by a country's residents, regardless of where they are located, but it is not confined to the output within the national borders, which is the essence of GDP. Disposable income refers to the income available to households after taxes and does not encompass the production aspect of the economy at all. Therefore, GDP is the most accurate measure for identifying the value of goods and services produced in a year.