What does GDP measure?

GDP, or Gross Domestic Product, is an essential economic indicator that measures the total monetary value of all goods and services produced within a nation's borders over a specific time period, usually annually or quarterly. It provides a comprehensive picture of a country's economic activity, reflecting the overall economic health and output.

By focusing on goods and services produced, GDP accounts for consumer spending, government spending, business investments, and net exports (exports minus imports). This makes it a crucial metric for understanding how well an economy is performing.

The other options do not accurately define GDP. Total profit of corporations pertains specifically to business financials and does not capture the broader economic activity reflected in GDP. International investments and financial health focus on the movement and status of investments across borders, which falls outside of the domestic production aspect that GDP measures. Lastly, while income levels can influence economic activity, GDP itself does not measure individual income but rather the total production value in the economy. This distinction clarifies why the correct answer is centered on the overall production of goods and services.