The Figure Given Below Depicts the Negatively Sloped Demand and Positively

question 65

Multiple Choice

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country.
Figure 20.2

-In Figure 20.2, if the world price of wheat is $35 and a $15 tariff is imposed:

• A) domestic consumption will decrease from 400 to 350 bushels of wheat.
• B) the government will collect $200 in revenue from the tariff.
• C) domestic consumption will increase from 150 to 200 bushels of wheat.
• D) imports will be eliminated.
• E) domestic consumption will increase from 150 to 300 bushels of wheat.

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Definitions:

Normal Spoilage

The expected amount of waste or inefficiency in a production process, considered to be a normal cost of doing business.

Departmental Production Report

A document that details the production metrics, such as output, efficiency, and costs, for a specific department within a manufacturing company.

Job Cost Sheet

A document that records the costs associated with a specific job or batch, detailing material, labor, and overhead expenses.

Process Costing

A method of assigning production costs to units of output by averaging costs over the total units produced, ideal for homogeneous products.