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

question 58

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 from these transactions is

• A)$800.
• B)$1000.
• C)$1200.
• D)$2300.
• E)$2500.

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Definitions:

Double Taxation

The incidence where income is taxed twice; this usually occurs when income is taxed at both the corporate level and personal level.

Corporate

Pertaining to corporations, large companies recognized by law as single entities distinct from their owners, with legal rights and responsibilities.

Corporations

Legal entities that are separate from their owners, allowing them to own assets, incur liabilities, and conduct business in their own name.

Business Sales

The total receipts a company generates from selling its goods or services over a specific period of time.