Refer to the Information Provided in Figure 4

question 20

Multiple Choice

Refer to the information provided in Figure 4.1 below to answer the question(s) that follow. Figure 4.1
-Refer to Figure 4.1. Assume that initially there is free trade. If the United States then imposes a 10-cent tax per apple,

• A) the quantity of apples demanded will be reduced by 4 million apples per day.
• B) the quantity of apples supplied by U.S. firms will increase by 6 million apples per day.
• C) the price of apples in the United States will increase to 40 cents per apple.
• D) U.S. imports of apples will increase by 6 million per day.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent ones.

End-Of-Period Spreadsheet

A document used in accounting to compile all balance sheet and income statement accounts at the end of a reporting period.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

End-Of-Period Spreadsheet

A tool used in accounting to compile all balances and adjustments at the period's end before generating financial statements.