The Following Graph Shows U

question 2

Multiple Choice

The following graph shows U.S. demand for and domestic supply of a good. Suppose the world price of the good is $1.00 per unit and a specific tariff of $0.50 per unit is imposed on each unit of imported good. In such a case, the government revenue from a tariff of $0.50 per unit is represented by the area _____.

• A) c
• B) e + g
• C) i + e + f
• D) d + e
• E) e

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Definitions:

Current Ratio

A liquidity ratio measuring a company’s ability to pay short-term obligations with its short-term assets.

Cash Dividends

Payments made by a corporation to its shareholders from its profits.

Short-term Investments

Financial assets expected to be converted into cash typically within a year, such as stocks or government bonds.

Inventory Turnover

A financial ratio that measures how many times a company's inventory is sold and replaced over a period.