In the Diagram in Question #8 Above, Suppose That Country

question 25

Multiple Choice

In the diagram in Question #8 above, suppose that country A, from this initial situation where its tariff is applied to both countries B and C, now forms a customs union with Country C. With the formation of this customs union, the amount of imports of good X into country A would be represented by the distance __________.

• A) OQ₆
• B) Q₁Q₆
• C) Q₂Q₅
• D) Q₃Q₄

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, preparing the accounts for the next period.