Suppose That the Ford Truck Plant in Oakville,Ontario,produces $10 Million

question 10

Multiple Choice

Suppose that the Ford truck plant in Oakville,Ontario,produces $10 million worth of vehicles in a given year.Of this total amount,$1 million in profits are returned to the owners of the company in the U.S.The $1 million in profits

• A) contributes to both Canadian GDP and Canadian GNP.
• B) contributes to Canadian GNP, but not Canadian GDP.
• C) contributes to Canadian GDP, but not Canadian GNP.
• D) contributes to neither Canadian GDP, nor Canadian GNP.
• E) contributes to the expenditure side of GDP only.

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Definitions:

Off-Peak Periods

Times when demand for a service or product is lower, often leading to reduced prices or rates to encourage usage or purchase during these times.

Demand Shift

A change in consumers' desire to purchase goods or services, influenced by factors like price changes, seasonal trends, or evolving preferences.

Static Pricing

A pricing strategy where the price of a product or service is fixed and does not change in response to market fluctuations or consumer demand variations.

Optimal Price

The price point that maximizes a company's profits or achieves other specified business objectives, taking into account costs, demand, and competitive pricing.