The Figure Given Below Depicts the Negatively Sloped Demand and Positively

question 74

Multiple Choice

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

-According to Figure 20.2, if the world price of wheat is $25 and a tariff of $10 is imposed by the domestic government, the total tariff revenue collected by the government is:

• A) $4,000.
• B) $0.
• C) $5,000.
• D) $2,000.
• E) $1,000.

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Definitions:

Healthy People

Individuals or populations that possess a state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Lemons Problem

A term in economics used to describe the issue of quality uncertainty in a market where sellers have more information about the product quality than buyers, leading to adverse selection.

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable risks by one party in a transaction, often seen in insurance and financial markets.

Moral Hazard

When a party whose actions are unobserved can affect the probability or magnitude of a payment associated with an event.