The total value of goods and services produced within the borders of a country is

Step 1: Analyze the question The question asks for the term that describes the total value of goods and services produced within the borders of a country. The key phrases are "total value" (gross, with no deductions) and "within the borders" (a domestic measure, regardless of who owns the producing firm).

Step 2: Explain the concepts

• Gross means the total output before deducting depreciation (wear and tear of capital).
• Net means after deducting depreciation.
• Domestic means production within the country's geographical borders, whether by citizens or foreigners.
• National means production by a country's citizens, whether at home or abroad.

So:

• GDP = total value of final goods and services produced within a country's borders in a year.
• GNP = GDP + net income from abroad (income earned by citizens abroad minus income earned by foreigners in the country).
• NDP = GDP − depreciation.
• NNP = GNP − depreciation.

Step 3: Check each option

• A. Net national product: Wrong. It is national (based on citizens) and net (after depreciation).
• B. Net domestic product: Wrong. It is domestic, but depreciation has been deducted, so it is not the "total" value.
• C. Gross domestic product: Correct. It is the total (gross) value produced within the borders (domestic).
• D. Gross national product: Wrong. It is based on citizens' output, including income from abroad, and not only on production within the borders.

Step 4: Answer The correct option is C. Gross domestic product.

Exam tip: Remember it this way:

• Domestic = Door (inside the country's borders).
• National = Nationals (citizens, wherever they are).
• Gross = Great total (nothing subtracted). Net = Nothing left of depreciation, because it has been removed.