The total value of all goods and services produced by a country in a time period describes which measure?

• A. GDP
• B. GNP
• C. CPI
• D. Balance of trade

Answer: (B)

The main idea here is GDP, which stands for Gross Domestic Product. It measures the total value of all final goods and services produced within a country’s borders in a given time period. That focus on location—production happening inside the country—is why this is the right measure for “produced by a country.”

Gross National Product would count output by the country’s residents regardless of where it’s produced, which can include production abroad. The other options describe different concepts: the consumer price index tracks changes in prices for a standard basket of goods and services, not total production; the balance of trade is exports minus imports, a net trade figure.