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'_
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