In Shoetown,a Rancher Takes $0 Worth of Inputs and Produces

question 27

Multiple Choice

In Shoetown,a rancher takes $0 worth of inputs and produces animal skins,which he sells to the tanner for $400.The tanner then sells leather to the shoemaker for $700,and the shoemaker then sells $1200 worth of shoes.The value added by the tanner is

• A)$0.
• B)$300.
• C)$400.
• D)$500.
• E)$1200.

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Definitions:

Certified Check

A check validated by a bank where the bank guarantees the availability of the funds behind the check.

Personal Check

A hand-written document that orders a bank to pay a specific amount of money from the writer's account to another party.

Checking Account

A bank account that allows for frequent transactions, including deposits, withdrawals, and check payments.

Checking Account

A bank account that allows for numerous withdrawals and deposits, making it ideal for daily transactions.