Question

Adding up all of the income in an economy in a given year is one approach to calculating which of the following?

a.) GROSS NATIONAL PRODUCT
b.)GROSS DOMESTIC PRODUCT
c.)GROSS FINAL PRODUCT
d.)GROSS CAPITAL PRODUCT

Answer 1

The answer is B. Gross Domestic Product.

Answer 2

The correct answer is b.)GROSS DOMESTIC PRODUCT

In reality, the answer is a bit complex. The GDP is actually used to determine whether or not an economy is healthy and developing, but this does not actually show that the people are living good, rather that the production is occurring efficiently.