Scenario 12-1 CANOES-R-US Makes Canoes. It Buys the Shell of the Canoe

question 240

Multiple Choice

Scenario 12-1
CANOES-R-US makes canoes. It buys the shell of the canoe from another local 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.
-Refer to Scenario 12-1.The value of each canoe in gross domestic product equals

• A) $1,200.
• B) $800.
• C) $500.
• D) $400.

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Definitions:

Price Stabilization

A set of measures or actions taken to maintain the price level of goods and services, preventing significant fluctuations.

Competition Tribunal

A specialized court-like body empowered to adjudicate on matters of competition law and ensure market fairness.

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Competition Act

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