Question

which of the following is not considered when calculating a countrys gdp?
a. goods produced by government agencies or commissions
b. goods produced in the country by people who are not citizens
c. services produced in the country
d. goods produced by citizens of the country who are currently overseas

Explanation:

Define Gross Domestic Product

Gross Domestic Product (GDP) measures the total market value of all final goods and services produced within a country's borders during a specific period.

Analyze geographic boundaries

GDP is strictly geographic. Any production occurring inside the country's physical borders is included, regardless of the producer's nationality.

Evaluate the given options

• a. goods produced by government agencies or commissions: Included, as these are final goods/services produced within the country.
• b. goods produced in the country by people who are not citizens: Included, because the production occurs within the country's borders.
• c. services produced in the country: Included, as services produced within the borders are part of GDP.
• d. goods produced by citizens of the country who are currently overseas: Excluded, because this production occurs outside the country's borders (this is instead counted in Gross National Product, or GNP).

Answer:

• a. goods produced by government agencies or commissions
• b. goods produced in the country by people who are not citizens
• c. services produced in the country
• d. goods produced by citizens of the country who are currently overseas (Correct answer)