Figure 17-13 in Figure 17-13, If the World Price

question 123

Multiple Choice

Figure 17-13 In Figure 17-13, if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, how much tariff revenue will the United States government collect?

• A) $4,000
• B) $16,000
• C) $20,000
• D) $24,000
• E) $48,000

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Definitions:

Operating Cycle

The period of time between the acquisition of inventory by a company and the receipt of cash from accounts receivable from the sale of that inventory.

Inventory Period

The time it takes for a company to turn its inventory into sales.

Accounts Payable Period

The duration it takes for a company to pay off its supplier invoices.

Accounts Receivable Period

The typical period a firm takes to collect receivables from its clients.