To determine the basis of a nation's gross domestic product (GDP), we need to understand what GDP encompasses. GDP measures the total economic output of a country within a specific time period, commonly a year. It includes various components that contribute to the economic activity of the nation.
Here are the given options:
1. The value of services performed after the total cost of goods is subtracted for the year
2. The goods produced in a single year
3. The goods produced and services performed in a single year
4. The services performed in a ten-year period
Now, let's analyze each option:
1. The value of services performed after the total cost of goods is subtracted for the year: This option inaccurately describes GDP, as GDP includes the total value of all goods and services produced, not merely the services adjusted by subtracting the cost of goods.
2. The goods produced in a single year: This option is partially correct but omits a critical component – services. GDP includes not only goods but also services.
3. The goods produced and services performed in a single year: This option accurately captures the entire scope of GDP. It includes the total value of all goods produced and all services performed within a single year.
4. The services performed in a ten-year period: GDP is typically calculated for a shorter time frame, like a year, rather than a decade. Additionally, this option only considers services, excluding goods.
Based on the analysis, the most accurate and comprehensive definition of GDP is:
The goods produced and services performed in a single year
Thus, the correct answer is:
3. The goods produced and services performed in a single year
