Scenario 11-1 CANOES-R-US makes canoes. It buys the shell of the canoe from anot

Question

Scenario 11-1
CANOES-R-US makes canoes. It buys the shell of the canoe from another firm for $300 and uses its labor and intermediate goods to make the canoe. It sells the
finished canoe to a retail canoe store for $800. The retail canoe store then sells the canoe to a consumer for $1,200.
82) Refer to Scenario 11-1. The value added of CANOES-R-US for each canoe equals
a. $400.
b. $800.
c. $500.
d. $1,200.
83) Refer to Scenario 11-1. The value of each canoe in gross domestic product equals
a. $400.
b. $1,200.
c. $500.
d. $800.

Explanation / Answer

c. $500. cause 800-500

b. $1,200. cause GDP is the value of goods + labor of everyone

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