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

question 103

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 total revenue (after tariff) going to domestic producers would be

• A)$11,200, and the total revenue (after tariff)going to foreign producers would be $2,800.
• B)$11,200, and the total revenue (after tariff)going to foreign producers would be $2,400.
• C)$8,400, and the total revenue (after tariff)going to foreign producers would be $2,800.
• D)$13,200, and the total revenue (after tariff)going to foreign producers would be $2,400.

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Definitions:

Voidable Title

A legal concept indicating that a title or ownership can be rendered invalid by a court if certain conditions are met.

Good-faith Purchaser

An individual who buys property without knowledge of any existing claims or disputes over the property.

Nonmerchants

Refers to individuals or entities that are not engaged in buying and selling goods for profit, contrasting with merchants who are regularly involved in commerce.

Security Interest

A legal claim or lien on collateral that has been pledged, usually by a debtor to secure repayment of a loan, giving the lender a right to repossess the property if the loan is not repaid.