MTTC Social Studies 2025 – 400 Free Practice Questions to Pass the Exam

The correct choice is based on the definition of Gross Domestic Product (GDP), which measures the total value of all final goods and services produced within a country's borders in a specific time period. This includes goods and services that are manufactured, sold, and consumed domestically.

Final goods and services are those that have completed the production process and are ready for consumption, distinguishing them from intermediate goods, which are used in the production of final goods. Including only final products helps avoid the double counting of items that are produced and subsequently used to create other products.

In GDP calculations, attention is solely focused on domestic production, which means that illegal sales, imports, and transactions occurring outside the country are not factored into GDP. Illegal sales do not get captured in official economic statistics, and although imports represent goods coming into a country, GDP only includes products made within the nation.