What is Gross Domestic Product (GDP)?

The correct answer is Option (3) → Value of all final goods and services produced within a country during a particular year

Gross Domestic Product (GDP) is the market value of all final goods and services produced within the domestic territory of a country during a year.

Only final goods are counted, the goods bought for use and not for producing something else. Intermediate goods, such as the flour a baker turns into bread, are already included in the value of the final good, so counting them again would be double counting. “Within a country” means that everything produced inside its borders is counted, whoever produces it.