Gross Domestic Product is the sum total of the market values of all the final goods and services produced on the domestic territory of a country in a given year.
In this definition of GDP, three things need further explanation, viz.,
Market value is the quantity of output multiplied by the per unit market price. Final Goods means those goods which are not to undergo any further processing and are thus available for final use. Those goods that have to undergo through some further processes are called intermediate goods.
Value Added is the value of output produced by a firm minus the value of output purchased from other firms that it has used as inputs in production.
Domestic Territory refers to the geographical area of a country, its coastline seawater embassies and consulates in other country, ships, etc.SUBMIT ASSIGNMENT NOW!