Home › AP Macroeconomics › Economics › Measuring Economic Output › Because GDP counts output produced within a coun…
Because GDP counts output produced within a country, it excludes production located:
AIn the public sector
BOutside that country
CInside that country
DIn the private sector
Answer & Solution
Correct answer: B. Outside that country
1. The GDP definition fixes a geographic boundary.
2. GDP is the value of all final goods and services produced within a country.
3. That value is counted for a given year.
4. The phrase within a country is what sets the boundary.
5. Output produced outside that country is therefore excluded.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 5 'The Macroeconomic Perspective'_
Related questions
A shift from manufacturing toward services shows up in GDP as a change in its:The peak and the trough are best described as the two:A country with rapidly growing GDP but even faster population growth will see GDP per capiAn economy whose nominal GDP rises while prices rise faster has real GDP that is:Structures are counted in GDP as one of the categories alongside goods, services and:Comparing two countries' living standards is better done with GDP per capita than total GDOnly final goods and services are counted in GDP, which avoids counting the same output:The economy's movement from peak to trough and trough to peak is called the: