-Refer to the Diagram Above

question 1

Multiple Choice

-Refer to the diagram above.If this country opens up to international trade in shoes at the world price,then the equilibrium domestic quantity demanded is ____________________ pairs of shoes per year and the equilibrium domestic quantity supplied is ____________________ pairs of shoes per year.

• A) 500;500
• B) 500;1500
• C) 1250;750
• D) 1000;1000
• E) 1500;500

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Definitions:

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and dividends have been accounted for.

FIFO

An inventory valuation method that assumes the first items purchased are the first ones sold, standing for "First In, First Out."

Gross Profit

The difference between sales revenue and the cost of goods sold before accounting for other operating expenses.

Physical Inventory

The process of counting and verifying the actual inventory on hand at a business location.