DECA Sports and Entertainment Marketing Practice Exam

Gross Domestic Product (GDP) measures what?

1. The total population of a country

2. The value of all goods and services produced within a country

3. The annual income of a country’s citizens

4. The total exports and imports of a country

The correct answer is: The value of all goods and services produced within a country

Gross Domestic Product (GDP) is a comprehensive measure that reflects the economic performance of a country. It specifically quantifies the monetary value of all final goods and services produced within a nation's borders during a specific time period, usually a year. This measurement is vital because it provides insight into the overall health of an economy, indicating whether it is expanding or contracting. By looking at GDP, economists and policymakers can assess economic activity, guide economic policy, and make international comparisons. The other choices address important aspects of a country's economy but do not encapsulate the primary purpose of GDP. For instance, the total population of a country reflects demographic data, not economic production. The annual income of a country's citizens pertains to income distribution rather than the overall production of goods and services. Lastly, the total exports and imports of a country are related to trade balances but do not specifically convey the total output of the economy. Thus, while all these elements are relevant to understanding an economy, GDP distinctly and accurately measures the value of all goods and services produced, making it the correct choice.