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

question 170

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 were applied to imports of the product, then the tariff would generate government revenues of

• A)$600.
• B)$400.
• C)$800.
• D)$1,200.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Fixed Asset Account

An account on a company’s balance sheet that reports the cost and accumulated depreciation of assets with a useful life of more than one year.

Accumulated Depreciation

Accumulated Depreciation is the total amount of depreciation expense that has been recorded for an asset over its useful life, indicating the amount of value the asset has lost over time.

Book Value

The net value of a company's assets as found on its balance sheet, calculated by subtracting total liabilities from total assets.