GDP measures production in which country?

GDP measures production in which country?

• A. Canada
• B. Germany
• C. United States
• D. United Kingdom

Answer: (C)

GDP measures production inside a country’s borders. It captures the market value of all final goods and services produced within a nation during a given period, regardless of who owns the producers. So production by a foreign firm inside the United States is counted in the United States’ GDP, while production by a U.S. firm abroad would be counted in that country’s GDP (not the U.S.). Among the options, the production within the United States is what GDP is assessing, making the United States the country whose GDP reflects that production.

GDP measures production inside a country’s borders. It captures the market value of all final goods and services produced within a nation during a given period, regardless of who owns the producers. So production by a foreign firm inside the United States is counted in the United States’ GDP, while production by a U.S. firm abroad would be counted in that country’s GDP (not the U.S.). Among the options, the production within the United States is what GDP is assessing, making the United States the country whose GDP reflects that production.