What does GDP measure?

Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country's borders during a specific time period, typically a year. This measure is crucial because it serves as a comprehensive snapshot of a country's economic activity and performance.

GDP includes various components, such as consumer spending, business investments, government expenditures, and net exports (exports minus imports). By aggregating the value of these diverse activities, GDP provides insight into the overall health and growth of an economy. A rising GDP often indicates economic expansion, while a declining GDP may signal contraction.

The other options focus on different aspects of economics but do not accurately convey what GDP measures. The total market value of financial assets relates to the financial sector rather than the production of goods and services. Similarly, the total population of a country describes demographic factors rather than economic output, and the total amount of foreign investment pertains to the flow of capital rather than domestic production activities. Thus, the focus of GDP specifically on the value of goods and services created makes it a fundamental indicator of economic performance.