This Graph Demonstrates the Domestic Demand and Supply for a Good,as

question 31

Multiple Choice

This graph demonstrates the domestic demand and supply for a good,as well as a quota and the world price for that good.
According to the graph shown,once this economy decides to restrict its free trade,area G represents:

• A)quota rents,which go to domestic producers.
• B)quota rents,which go to foreign firms or governments.
• C)government tax revenues,which go to the domestic government.
• D)government tax revenues,which go to the foreign government.

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Definitions:

Dishonors

Refers to the failure to accept or pay a bill of exchange or promissory note when due.

Dishonored Note

A promissory note that has not been paid by the maker at maturity.

Maturity

The date on which a financial obligation or investment becomes due for payment or achieves its full value.

Note Receivable

A written promise that money will be paid by the debtor to the creditor at a certain date in the future.