Scenario 8-1
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 8-1.The value of each canoe in gross domestic product equals
A)$1,200.
B)$800.
C)$500.
D)$400.

Question

Quizplus · Accepted Answer

The value of each canoe in GDP is the final sale price to the consumer, which is $1,200. This is because GDP measures the market value of all final goods and services produced within a country.

Scenario 8-1 CANOES-R-US Makes Canoes.It Buys the Shell of the Canoe from Canoe