Refer to the Accompanying Table for a Certain Product's Market

question 159

Multiple Choice

Refer to the accompanying table for a certain product's market in Econland. If the world price of the product were $6 and a tariff of $1 per unit imported is imposed, then the quantity of output that would be supplied domestically would be

• A)1,400 units, and the quantity of output that would be imported would be 800 units.
• B)1,600 units, and the quantity of output that would be imported would be 800 units.
• C)1,600 units, and the quantity of output that would be imported would be 400 units.
• D)1,400 units, and the quantity of output that would be imported would be 400 units.

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Definitions:

Discount on Bonds Payable

The difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.

Cash

Money in the form of coins or banknotes, especially that of a country or a particular denomination.

Bonds Payable

Long-term liabilities representing borrowed money that the company is obligated to repay to bondholders, typically at fixed interest rates.

Issuance

The process of offering new securities for sale to investors, typically by a corporation or government.