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

question 208

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 added of CANOES-R-US for each canoe equals

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

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Definitions:

Shield Volcanoes

Broad, dome-shaped volcanoes with gently sloping sides, formed mostly by the fluid lava flows.

Steep Slopes

Steep slopes are areas of land with a sharp inclination, often leading to rapid erosion, landslides, or provide distinctive habitats for flora and fauna.

Flood Basalts

Vast areas covered by large volumes of basalt lava, which erupt during major volcanic episodes.

Siberia

A vast geographic region, covering most of North Asia, known for its harsh climate, extensive boreal forests, and significant mineral resources.