How is Gross Domestic Product (GDP) defined?

Gross Domestic Product (GDP) is defined as the total value of all goods and services produced within a country's borders over a specific time period, typically a year or quarter. This calculation encompasses the output of domestic industries and reflects the economic activity within the nation's economy. By focusing on the value of goods and services produced, GDP provides a broad measure of economic health and productivity.

The correct answer emphasizes that this total value accounts for production occurring within the country while excluding production generated by foreign entities. In this way, it shows the strength of the domestic economy.

The other options don't accurately capture the comprehensive nature of GDP. For instance, total income from exports relates specifically to trade rather than the complete economic output; value of imports reflects consumption rather than production; and the amount spent on public services doesn’t encompass the broader economic activities in the private sector. Therefore, the definition that outlines GDP as the total value of goods produced within a country minus foreign income best represents its role as a key economic indicator.