Based on Figure 6

question 28

Multiple Choice

Based on Figure 6.1,how much revenue will the government raise from a $0.25 per bushel tariff on soybean imports?

• A)The government will raise $2.5 million.
• B)The government will raise $5 million.
• C)The government will raise $15 million.
• D)The government will raise $32.5 million.
• E)The government will see no increase in income; because the country is small, foreign firms will simply not serve it after the tariff is imposed.

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Definitions:

F.O.B. Shipping Point

A shipping term indicating that a buyer is responsible for the goods, including the risk of loss and transportation cost, from the time they leave the seller's premises.

Invoice Approval Form

A document used to approve invoices for payment, ensuring the goods or services billed have been received and are satisfactory.

Perpetual Inventory System

An inventory accounting system that records goods and materials purchased and sold in real-time through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Inventory

Items that a business possesses with the intention of selling them to consumers.