Figure 19-2 Suppose the U.S. Government Imposes a $0.40 Per

question 249

Multiple Choice

Figure 19-2
Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 19-2 shows the impact of this tariff.
-Refer to Figure 19-2.If the tariff was replaced by a quota which limited rice imports to 16 million pounds,the amount of additional revenue received by rice importers would equal

• A) $6.4 million.
• B) $9.6 million.
• C) $16 million.
• D) $19.8 million.

Understand how variations in variable and fixed costs affect average variable cost, average total cost, and marginal cost.

Analyze the impact of changes in input prices on production costs.

Calculate average total cost for different levels of production output.

Describe the relationship between marginal cost, average total cost, and average variable cost.

---

Definitions:

African Population

The demographic total of individuals living on the African continent, known for its cultural, ethnic, and linguistic diversity.

Staple Crop Production

The cultivation and production of essential crops that form the basic diet of a population.

Hierarchical Society

A society that is structured in a hierarchy of ranks with those at the top having more power and privileges than those lower down.

Wealthiest Elite

A small group of people with significant wealth and power within a society, often exuding considerable influence in economic, political, or social realms.