Which of the following best represents a definition of gross domestic product (GDP)?

The correct answer is that gross domestic product (GDP) is best defined as the key economic measure of all finished goods and services produced in a country. GDP provides a comprehensive overview of a nation's overall economic activity and health. It encompasses the total value of all goods and services that are produced over a specific time period, typically measured annually or quarterly.

This definition is significant because GDP includes contributions from various sectors of the economy, including agriculture, manufacturing, and services, presenting a holistic view of economic productivity. Understanding GDP is vital for evaluating growth, making international comparisons, and determining economic policy decisions.

The other options do not accurately capture the full scope of GDP. For instance, referencing total revenue from retail sales only accounts for a segment of the economy and omits other critical sectors that contribute to GDP. Similarly, measuring consumer spending on goods focuses narrowly on one aspect of economic activity rather than encompassing all finished products and services. Finally, considering only the output of services from the service sector neglects valuable contributions from manufacturing and agriculture, leaving a partial understanding of a nation's economic performance.