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Question about Olympic Medals?

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At the end of the Olympics, how do they determine which country gets first place overall, where medals is concerned? Is it by the total number of medals they've earned, or the most GOLD medals?

This is the first Olympiad in which I'm keeping track of the medal count. According to the latest result, the United States has more medals at 79, but China has more Gold medals (43 out of 76, while the USA has only 26 out of their 79.)

It has been said on the news that China has been practicing so hard for this in the past 4 years, and they don't wish to come in second to the USA, yet again. If it's the total number of medals earned in this, I believe it could be for naught.

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