Paper 2 · June 2010 · National Income and Economic Growth
What is Gross Domestic Product (GDP)?
AThe value of output produced within a country's national boundary in a given period, before deducting capital consumption.
BThe value of output produced within a country's national boundary in a given period, after deducting capital consumption.
CThe total value of goods and services produced by a country's citizens and firms, whether located at home or abroad.
DThe total value of a country's exports minus the value of its imports in a given period, sometimes called the trade balance.
Explanation
GDP measures the value of output produced within a country's borders in a given period, before any deduction for capital consumption (depreciation) of the capital stock used to produce that output. Deducting capital consumption instead gives Net Domestic Product, including output produced by citizens abroad instead gives Gross National Product, and exports minus imports is the trade balance, not a measure of total output.
Derived from ZIMSEC Economics Paper 2, June 2010, Q1